(South Asian Association For Regional Cooperation)

HARSHITA GULATI
MEGHNA JOSHI
PRESENTED BY, PRESENTED TO,
GROUP 5 MANSI BHARDWAJ DR. TANUSHREE PUROHIT
MD MUNIBUR RAHMAN
MUNMUN PRADHAN
The South Asian Association for Regional
Cooperation (SAARC) is the regional
intergovernmental organisation and geopolitical
union of states in South Asia.
It’s member states are Afghanistan, Bangladesh,
Bhutan, India, the Maldives, Nepal, Pakistan and
Sri Lanka.
The SAARC was founded in Dhaka on 8
December 1985.
INTRODUCTION

● In the era of globalisation, formation of regional grouping is the first step

towards global integration.
● Regional groupings are most commonly based upon the principles of
shared histories, geographical contiguity, core competencies, advantages
associated with economy of scales.
● The concept of SAARC as the political and economic corporation in south
Asia was first envisaged by Bangladeshi President Late Zia-Ur-Rahman in
1980.
● In 1983, the international conference held by Indian Minister of external
affairs P.V Narsimha Rao in New Delhi, The foreign minister of seven
countries adopted declaration on SAARC and formally launch the
integrated plan of action (POA). Initially in 5 areas of cooperation :
1. Agriculture
2. Rural Development
3. Telecommunication
4. Meteorology and
5. Health and population activities

● The SAARC secretariat was established on 16 Jan 1987 and was

inaugrated by Late King Birendra Bin Bikram Shah of Nepal.
OBJECTIVES
SAARC aims to promote economic growth, social progress and cultural
development within the South Asia region. The objectives of SAARC, as
defined in its charter, are as follows:
● 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 realise 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 forms on
matters of common interest; and
● Cooperate with international and regional organisation with similar aims
and purposes.
STRUCTURE AND PROCESS
Cooperation in SAARC is based on respect for the five principles of:

● sovereign equality
● territorial integrity
● political independence,
● non-interference in internal affairs of the Member States and
● mutual benefit.

Regional cooperation is seen as a complement to the bilateral and

multilateral relations of SAARC Member States.
SAARC Summits are held annually and the country hosting the Summit holds the
Chair of the Association.

Decisions are made on an unanimity basis while bilateral and contentious issues
are excluded from the deliberations of SAARC.

In addition to the eight Member States, nine Observer States join SAARC
Summits: China, the US, Myanmar, Iran, Japan, South Korea, Australia,
Mauritius and the European Union.
AIMS AND ISSUES

1. Lasting peace and prosperity in the indian subcontinent

2. South Asian Free Trade Area(SAFTA):
● SAFTA was envisaged primarily as the first step towards the transition to
a Free Trade Area leading subsequently towards a Custom Union
,Common Market and Economic Union.
● During 10th SAARC Summit (Colombo,29-31 july 1998) it was decided to
set up a committee of Experts(COE) to draft a comprehensive treaty
framwork for creating a free trade area within the region,taking into
consideration the asymmetries in development within the region and
bearing in mind to fix realistic and achievable targets.
● SAFTA agrement was signed on 6 january 2004 during 12th SAARC
Summit held in Islamabad in Pakistan.The aggrement enterded into
force 1st july 2006.
● Under this agreement ,SAARC members will bring their duties down to 20
percent by 2009.
● In 2012 the SAARC exports increased substantially to US$ 355 billion from
US$206 billion in 2009.
● Imports too increased from US$330 billion to US$ 602 billion over the same
period.
3. SAARC Visa Exemption Scheme:
● Was launched in 1992.
● Leaders at the 4rth submmit(Islamabad,29-31 December 1988),while
realising the importance of having peole to people contacts ,among the
peoples of SAARC countries,decided that certain certain categories of
dignitries should be entitled to a special travel documet,which woud exempt
them visas within the region.
● Curently the list included 24 categories of entitled persons which include
dignitries,Judges of higher courts,Parliamentarians,Senior
Officials,Businessmen,Journalists,Sportperson etc.
HIGHLIGHTS FROM 18th SAARC SUMMIT

● The eighteenth summit of 'South Asian Association of Regional Cooperation' (SAARC)

was held in Kathmandu, the capital of Federal Democratic Republic of Nepal during 26–
27 November 2014.
● The theme of the summit was Deeper Integration for Peace and Prosperity, focused on
enhancing connectivity between the member states for easier transit-transport across
the region.
● Foreign Ministers of the eight member states signed an agreement on energy
cooperation namely 'SAARC Framework Agreement for Energy Cooperation (Electricity)'
in the presence of their heads of state and government during the concluding ceremony
of the 18th SAARC Summit on 27 November.
● Pakistan stalled, citing insufficient internal preparations, signing of two other
agreements on Vehicular Traffic and Railways respectively.

● China played an active role for itself in the region including infrastructure
funding through its proposed 'Asian Infrastructure Investment Bank' (AIIB)
and extending its ambitious Maritime Silk Road project to South Asian
nations.
● A commitment to achieving a South Asian Economic Union (SAEU) by
2030, which would include a free trade area, customs union, common
market and a common economic and monetary union.

● China's Deputy Foreign Minister Liu Zhenmin reaffirmed the country’s

economic commitment to SAARC and announced plans to spend USD 30
billion for the construction of roads, the creation of 10,000 scholarships
and 5,000 training opportunities in China.
INDIA'S ROLE

 Initially India was against forming of such grouping. But after liberalization
of economy and success of NAFTA,ASEAN opened its eyes.

 In this association, India is perceived to behave like a hegemon and

Pakistan as obstructionist in India's ambitions to play a legitimate role with
its achievements and capabilities.

 Pakistan have tried to play China card against India either to get more
concessions or pressurize it.

 India having heavy weight can't dream of becoming regional power or say
global power without having make SAARC functional in its objective.
● For that to be happen India has to leave big brothers role and try to
get neighbours on board.

● At the same time neighbours too will have to look into the long term
prospects and benefits accruing out of the successes of SAARC.

● Following will be the key in SAARC success:

o Building trust
o Putting economics before politics
o Boosting up cultural cooperation and regional tourism
o Joint efforts to deter cross-border illegal migration, terrorism,
narcotics and drug trafficking

Besides these bilateral and sub-regional initiatives(Nepal-India

Bangladesh etc) could significantly spur regional cooperation.
REASONS FOR SAARC FAILURE

● Has SAARC delivered?

● Has it contributed in any way to make the lives of billions living in the area
better?
● Has it resulted in greater interaction among the SAARC nations?
Answer of all of these questions is in the negative
The reasons for SAARC's non-performance are multiple, and these factors
need to be understood and steps taken to counter these by all stakeholders, if
they wish for SAARC to be successful.
● Of course, the political tensions between India and Pakistan are an
obvious reason. As long as the relations between two biggest member
states of SAARC are strained, any action to strengthen SAARC is bound to
be extremely difficult.
● Narrow national interests have invariably triumphed in the region rather than
broader regional vision, which of course will also be more beneficial to the
individual nations in the long run.
● Unfortunately some of the countries in the region have been suffering from
political uncertainties and the governments there have not been strong
enough to take hard decisions which are required to make any meaningful
multi-lateral initiatives.
● Lack of connectivity between different SAARC countries is another reason
for the lackluster performance of SAARC so far. rade and other relations
between India and Afghanistan are hampered by the fact that they don't
share any border and connectivity through Pakistan, and is dependent upon
good relations between India and Pakistan.
● Similar is the case between Nepal and Pakistan. Add to this, the poor
state of critical infrastructure in practically all SAARC countries, and the
fact that any trade or contacts between them seems to face major
infrastructural issues apart from the obvious political ones. The lack of
security and the terrorist threats in most SAARC countries is another
hindrance.
● A fundamental fact which distinguishes SAARC from other such
groupings also needs to be understood. Most of such other economic
groupings, be it EU or ASEAN, are groupings of the economies, which are
more or less equal.
● Even if some economies are smaller than others, there are three or four
equally powerful economies. Unlike any other such groupings, SAARC is
dominated by India. India accounts for nearly 60 per cent of SAARC's
population, area or GDP.
● Except for Afghanistan, India shares its borders with every country in the
region, and again, except for Afghanistan, no other country shares a border
with any other SAARC country except India. This obvious asymmetry makes
meaningful cooperation that much more problematic.
● However, an important reason for non-performance of SAARC, and which
has not got its due attention, is also the psychological framework of its
various constituents.
● Not many countries in the SAARC region identify themselves as
predominantly South Asian. Afghans consider themselves more as a Central
Asian country, while Pakistan would prefer to be a part of the Middle East.
Both Sri Lanka and Maldives think of themselves as much a South East
Asian country as a South Asian one.
TRADE AND FINANCE
The acceleration of economic growth is a Charter objective of SAARC.
Corporation in core areas of trade and finance b/w the SAARC members in
1991.

The following important processes of SAARC are promoting cooperation

in the field of Trade, Economy and Finance

● Customs Cooperation
● South Asian Free Trade Area (SAFTA) (Custom Duties down to 20%)
● SAARC Preferential Trading Arrangement (SAPTA)
ECONOMIC ACHIEVEMENTS

● SAPTA(SAARC preferential trading arrangement)was signed on 7

December, 1995.
● SAFTA(South Asian Free Trade Area) was signed in Islamabad in
January 2004.
● SAARC chamber of commerce and industry (SCCI).
● SAARC constitutes South Asian Development Fund(SADF).
● Signed an agreement of mutual assistance.
● Avoidance of double taxation were signed.
THANK YOU