ECONOMICS PROJECT

WHAT IS IT

OBJECTIVES

 Promote the welfare of the peoples of South Asia and improve their quality of
life
 Accelerate economic growth, social progress, and cultural development in the
region by providing all individuals the opportunity to live in dignity and realize
their full potential
 Promote and strengthen collective self-reliance among the countries of South
Asia
 Contribute to mutual trust, understanding and appreciation of one another’s
problems
 Promote active collaboration and mutual assistance in the economic, social,
cultural, technical, and scientific fields
 Strengthen co-operation with other developing countries
 Strengthen co-operation among themselves in international forums on
matters of common interest; and
 Cooperate with international and regional organizations with similar aims and
purposes.

PRINCIPLES

 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.

SPECIALISED BODIES OF SAARC

1. 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.

2. SAARC Development Fund (SDF): Its primary objective is the 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.

3. 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.

4. 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

AREAS OF COOPERATION

POLITICAL RELEVANCE OF SAARC

EXPECTATIONS FROM SAARC BY VARIOUS COUNTRIES

ACHIEVEMENTS

o SAARC Agreement on Trade in Services (SATIS): The SAARC

Agreement on Trade in Services (SATIS) adheres to the GATS-plus
“positive list” strategy for liberalizing trade in services.

o Agreement on SAARC Preferential Trading Arrangement

(SAPTA): SAPTA was signed by SAARC Foreign Ministers on April
11, 1993, during the 7th SAARC Summit in Dhaka. The SAPTA called
for incremental negotiations for better and expanded market
access.

o Agreement on South Asian Free Trade Area (SAFTA): The

SAFTA was agreed during the Twelfth Summit in Islamabad in 2004
with the goal of gradually working towards a South Asian Economic
Union (SAEU). The agreement asks for greater commercial and
economic cooperation.

o SAARC and Environment protection: In 1987, the environment

was designated as a subject requiring urgent attention by SAARC.
SAARC Environment Ministers have convened on a regular basis to
assess progress and to strengthen regional cooperation in the areas
of environment, climate change, and natural disasters.
o Other Achievements:

o
o In addition to establishing an energy reserve in Pakistan,
SAARC also developed a food bank in India. An FTA is limited
to products but not to any services, like information
technology.
o Heads of State have had to shake hands and engage in
conversation together because of the circumstances,
institutions, and venues that SAARC has managed to
establish.
o Important issues for the area have been addressed by SAARC,
including a social charter, development agreements, and even
the delicate problem of terrorism prevention.
o The agreements on transportation, energy, and food banks
are all significant milestones in the right direction. One of the
foundations of South Asian integration initiatives is exchanges
in research and civil society.

STRUCTURE OF SAARC

o The SAARC organization is divided into the following layers:

Summits

The Summit is a meeting held every two year and consists of all heads of
States/Governments of SAARC member nations. It is the highest authority or decision
making authority under SAARC.

Council of Ministers

Each country is represented by Foreign Ministers of the member nations in the

Council. The council is the highest policy-making body. It meets every two years.

Standing Committee

It is made up of the foreign secretaries of the member countries. Its primary roles
are as follows:

o To oversee and coordinate the programmes.

o It focuses on financing modes and defining inter-sectoral priorities.
o It seeks to mobilise regional and foreign resources, as well as to develop new
areas of collaboration based on proper research.

Technical Committee

Member-state delegates establish programmes and plan initiatives in their

respective disciplines. Technical Committees are in charge of overseeing the
execution of such actions and reporting to the Standing Committee.
Programming Committee

This committee is made up of Heads (JS/DG/Director) of SAARC Divisions of Member

States. Its functions include the following:

o To support the Standing Committee on different areas relevant to regional

project selection, including cost-sharing mechanisms among Member States,
and external fund mobilisation.
o Work Programme Inter-Sectoral Priority
o Review the Activity Calendar.

Action Committee

The SAARC Charter provides for Action Committees comprised of member nations
involved with the implementation of initiatives involving more than two, but not all,
member states.

Secretariat

The SAARC Secretariat was formed in 1987 and began operations on January 1,
1988. The Secretariat’s mission is to organize and monitor the implementation of
SAARC operations, to service the Association’s meetings, and to function as a
conduit of communication.

IMPORTANCE OF SAARC IN INDIA

1. SAARC is a game-changer for India’s Act East Policy. It links South Asian
economies with Southeast Asian that will further boost economic integration
and prosperity to India mainly in the Services Sector.
2. Primacy to the country’s immediate neighbors.
3. Nations of SAARC help in the creation of mutual trust and peace within the
region thus promoting stability.
4. SAARC can engage Nepal, Bhutan, the Maldives, and Sri Lanka in economic
cooperation and development process to counter China (OBOR initiative).
5. SAARC offers a platform to India to showcase its leadership in the region by
taking up extra responsibilities.

CHALLENGES FACED BY SAARC

o The two main SAARC members, India and Pakistan, have long been at odds
with one another. SAARC is still unable to perform as a sub-regional
organisation due to rivalry.
o Border and maritime disputes still plague the area in great numbers.
Unresolved border issues have contributed to issues with terrorism, the
refugee crisis, smuggling, and the drug trade. Cooperative relationships are
still hampered by unsolved difficulties.
o SAARC has not developed into a regional organization in the vein of the
European Union or the African Union, despite its ambitious goals.
o Internal conflicts, most notably the war between India and Pakistan, affect its
member states.
o In consequence, this has made it more difficult for it to create comprehensive
trade agreements or to effectively work together on issues like infrastructure,
energy, and security.
o Any such summits are unlikely until the problem has been settled since
Pakistan is steadfast in its backing of the Taliban and the other SAARC nations
are reluctant to accept the group.

CONCLUSION

Regardless of SAARC’s flaws, it remains the only forum for South Asian leaders to
discuss local issues with 1.6 billion citizens. SAARC leaders must collaborate in South
Asia’s peaceful and prosperous development. However, it is vital to highlight that a
country may refuse to cooperate due to national pride, a lack of trust, political
friction, or unequal distribution of costs and benefits. By promoting collaboration and
regular communication between political leaders, regional cooperation agreements
can assist to establish confidence among parties. Domestic institutional
arrangements, government ability, domestic backing, and political and sociocultural
actors’ desires for regional cooperation must all be understood.