South Asian Association for Regional Cooperation (SAARC)

The South Asian Association for Regional Cooperation (SAARC) was established with the signing of the
SAARC Charter in Dhaka on 8 December 1985.

The idea of regional cooperation in South Asia was first raised in November 1980. After
consultations, the foreign secretaries of the seven founding countries—Bangladesh, Bhutan, India,
Maldives, Nepal, Pakistan, and Sri Lanka—met for the first time in Colombo in April 1981.

Afghanistan became the newest member of SAARC at the 13th annual summit in 2005.
The Headquarters and Secretariat of the Association are at Kathmandu, Nepal.

Principles

Cooperation within the framework of the SAARC shall be based on:

Respect for the principles of sovereign equality, territorial integrity, political

independence, non-interference in the internal affairs of other States and mutual
benefit.
Such cooperation shall not be a substitute for bilateral and multilateral cooperation but
shall complement them.
Such cooperation shall not be inconsistent with bilateral and multilateral obligations.

Members of SAARC

SAARC comprises of eight member States: //

Afghanistan
Bangladesh
Bhutan
India
Maldives
Nepal
Pakistan
Sri Lanka
There are currently nine Observers to SAARC, namely: (i) Australia; (ii) China; (iii) the European
Union; (iv) Iran; (v) Japan; (vi) the Republic of Korea; (vii) Mauritius; (viii) Myanmar; and (ix) the
United States of America.

Areas of Cooperation

Human Resource Development and Tourism

Agriculture and Rural Development
Environment, Natural Disasters and Biotechnology
Economic, Trade and Finance
Social Affairs
Information and Poverty Alleviation
Energy, Transport, Science and Technology
Education, Security and Culture and Others

The Objectives of the SAARC

To promote the welfare of the people of South Asia and to improve their quality of life.
To accelerate economic growth, social progress and cultural development in the region and to
provide all individuals the opportunity to live in dignity and to realize their full potentials.
To promote and strengthen collective self-reliance among the countries of South Asia.
To contribute to mutual trust, understanding and appreciation of one another’s problems..
To promote active collaboration and mutual assistance in the economic, social, cultural,
technical and scientific fields.
To strengthen cooperation with other developing countries.
To strengthen cooperation among themselves in international forums on matters of
common interests; and
To cooperate with international and regional organizations with similar aims and purposes.

Principal Organs

Meeting of Heads of State or Government

Meetings are held at the Summit level, usually on an annual basis.

Standing Committee of Foreign Secretaries

The Committee provides overall monitoring and coordination, determines priorities,

mobilizes resources, and approves projects and financing.
Secretariat

The SAARC Secretariat was established in Kathmandu on 16 January 1987. Its role is to
coordinate and monitor the implementation of SAARC activities, service the meetings of the
association and serve as a channel of communication between SAARC and other
international organizations.
The Secretariat comprises the secretary-general, seven directors, and the general services
staff. The secretary-general is appointed by the Council of Ministers on the principle of
rotation, for a non-renewable tenure of three years.

SAARC Specialized Bodies

SAARC Development Fund (SDF): Its primary objective is funding of project-based collaboration
in social sectors such as poverty alleviation, development, etc.

SDF is governed by a Board consisting of representatives from the Ministry of Finance of

the Member States. The Governing Council of SDF (Finance Ministers of MSs) oversees the
functioning of the Board.
South Asian University

South Asian University (SAU) is an international university, located in India. Degrees

and Certificates awarded by the SAU are at par with the respective Degrees and
Certificates awarded by the National Universities/ Institutions.
South Asian Regional Standards Organization

South Asian Regional Standards Organization (SARSO) has its Secretariat at Dhaka,
Bangladesh.
It was established to achieve and enhance coordination and cooperation among
SAARC member states in the fields of standardization and conformity assessment and is
aimed to develop harmonized Standards for the region to facilitate intra-regional trade and
to have access in the global market.
SAARC Arbitration Council

It is an inter-governmental body having its office in Pakistan is mandated to provide a

legal framework/forum within the region for fair and efficient settlement of commercial,
industrial, trade, banking, investment and such other disputes, as may be referred to it by
the member states and their people.

SAARC and its Importance

SAARC comprises 3% of the world's area, 21% of the world's population and 3.8% (US$2.9
trillion) of the global economy.
Creating synergies: It is the world’s most densely populated region and one of the most fertile
areas. SAARC countries have common tradition, dress, food and culture and political aspects
thereby synergizing their actions.
Common solutions: All the SAARC countries have common problems and issues like poverty,
illiteracy, malnutrition, natural disasters, internal conflicts, industrial and technological
backwardness, low GDP and poor socio-economic condition and uplift their living standards thereby
creating common areas of development and progress having common solutions.

SAARC Achievements

Free Trade Area (FTA): SAARC is comparatively a new organization in the global arena. The
member countries have established a Free Trade Area (FTA) which will increase their internal
trade and lessen the trade gap of some states considerably.
SAPTA: South Asia Preferential Trading Agreement for promoting trade amongst the
member countries came into effect in 1995.
SAFTA: A Free Trade Agreement confined to goods, but excluding all services like information
technology. Agreement was signed to reduce customs duties of all traded goods to zero by the
year 2016.
SAARC Agreement on Trade in Services (SATIS): SATIS is following the GATS-plus 'positive
list' approach for trade in services liberalization.
SAARC University: Establish a SAARC university in India, a food bank and also an energy reserve
in Pakistan.

Significance for India

Neighbourhood first: Primacy to the country’s immediate neighbours.

Geostrategic significance: Can counter China (OBOR initiative) through engaging Nepal,
Bhutan, the Maldives and Sri Lanka in development process and economic cooperation.
Regional stability: SAARC can help in creation of mutual trust and peace within the region.
Global leadership role: It offers India a platform to showcase its leadership in the region by
taking up extra responsibilities.
Game changer for India’s Act East Policy: by linking South Asian economies with South East
asian will bring further economic integration and prosperity to India mainly in the Services Sector.

Challenges

Low frequency of meetings: More engagement is required by the member states and instead of
meeting biennial meetings should be held annually.
Broad area of cooperation leads to diversion of energy and resources.
Limitation in SAFTA: The implementation of SAFTA has not been satisfactory a Free Trade
Agreement confined to goods, excluding all services like information technology.
Indo-Pak Relations: Escalated tension and conflict between India and Pakistan have severely
hampered the prospects of SAARC.

Way Forward

In a region increasingly targeted by Chinese investment and loans, SAARC could be a common
platform to demand more sustainable alternatives for development, or to oppose trade tariffs
together, or to demand better terms for South Asian labour around the world.
SAARC, as an organisation, reflects the South Asian identity of the countries, historically and
contemporarily. This is a naturally made geographical identity. Equally, there is a cultural,
linguistic, religious and culinary affinity that defines South Asia.
The potential of organisation to maintain peace and stability in the region should be explored by all
the member countries.
SAARC should be allowed to progress naturally and the people of South Asia, who make up a
quarter of the world’s population should be offered more people-to-people contact.
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