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The South Asian Association for Regional Cooperation (SAARC) was established on December 8, 1985 in Dhaka, Bangladesh. It is a regional intergovernmental organization aimed at promoting economic and regional integration in South Asia. The SAARC region includes eight countries—Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka. Together, these countries represent a significant portion of the world’s population, with around 1.9 billion people or approximately 23% of the global population.
The founding members of SAARC were Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka. Afghanistan joined SAARC as its eighth member in 2007. SAARC’s main objectives are to foster peace, stability, and economic development through regional cooperation. However, the organization has faced several challenges, particularly geopolitical tensions between India and Pakistan, which have impeded its progress.
SAARC was established with several key objectives in mind:
Promote Regional Cooperation:
SAARC aims to improve cooperation among South Asian nations in areas such as trade, culture, education, and technology to uplift the socio-economic standards of the region.
Ensure Peace and Stability:
The organization strives to promote peace, stability, and progress by creating a conducive environment for dialogue and cooperation.
Foster Economic Integration:
SAARC aims to create a platform for economic integration through free trade agreements, regional infrastructure projects, and joint ventures.
Enhance Social and Cultural Exchange:
Encouraging people-to-people contact and cultural exchange, SAARC promotes a shared regional identity while respecting national sovereignty.
Tackle Regional Issues Collectively:
The organization focuses on addressing common regional challenges such as poverty, climate change, disaster management, terrorism, and energy security through collaborative efforts.
Several countries and international organizations have observer status in SAARC, including:
These observers contribute to SAARC’s initiatives through technical and financial support in specific sectors.
SAARC operates through various institutions that help facilitate cooperation among its member states:
SAARC Secretariat:
The SAARC Secretariat is based in Kathmandu, Nepal, and is responsible for coordinating and monitoring the implementation of SAARC programs and decisions. The Secretary-General, appointed by member states, heads the Secretariat.
SAARC Summit:
The SAARC Summit, held every two years, is the highest decision-making body of the organization. Heads of state or government from member countries attend the summit to discuss key regional issues and make policy decisions.
SAFTA (South Asian Free Trade Area):
One of the major agreements within SAARC is the South Asian Free Trade Area (SAFTA), which aims to reduce trade barriers and promote free trade among member countries. SAFTA came into force in 2006 and seeks to reduce tariffs on goods traded within the region.
SDF (SAARC Development Fund):
The SAARC Development Fund was established in 2010 to fund regional projects focused on poverty alleviation, infrastructure development, and social programs. It has three main windows: social, economic, and infrastructure development.
SAARC has contributed to fostering dialogue, improving people-to-people connectivity, and addressing regional challenges. Some of the organization’s achievements include:
SAFTA:
The South Asian Free Trade Area agreement has created a platform for trade liberalization among member states. Although its full potential has not been realized due to political tensions, SAFTA has laid the groundwork for increased intra-regional trade.
SAARC Development Fund (SDF):
The SDF has played a crucial role in financing social and economic development projects in the region. For instance, it has supported poverty alleviation programs, education, healthcare, and disaster management.
People-to-People Exchange:
SAARC has promoted cultural and educational exchanges through initiatives like SAARC Cultural Centres, SAARC Youth Exchange Programs, and SAARC Scholarships. These programs have strengthened regional solidarity.
SAARC Regional Centers:
Various regional centers have been established to focus on key areas such as agriculture, energy, disaster management, tuberculosis, and HIV/AIDS control. These centers have promoted collaboration in research and development across member states.
SAARC Visa Exemption Scheme:
The SAARC Visa Exemption Scheme facilitates travel among the region’s officials, diplomats, and key stakeholders, promoting smoother regional engagement.
Despite its potential, SAARC has faced significant challenges that have hindered its progress:
The long-standing political rivalry between India and Pakistan has been the biggest roadblock to SAARC’s success. Their disagreements over issues like Kashmir and cross-border terrorism have often resulted in gridlocks at SAARC summits. On several occasions, India has opted to bypass SAARC for other regional initiatives, such as BIMSTEC and BBIN (Bangladesh, Bhutan, India, Nepal).
SAARC’s institutional framework is often seen as weak. Decision-making in SAARC is based on consensus, which can slow down the process and lead to inaction on key issues, especially when there is disagreement between member states.
There are significant economic disparities between the member countries, with India being the largest economy and countries like Afghanistan and Nepal having relatively smaller economies. This has affected the implementation of trade agreements like SAFTA, as smaller nations often fear being overshadowed by larger ones like India.
Despite the SAFTA agreement, intra-regional trade within SAARC remains low, contributing only around 5% of the total trade of the region. Non-tariff barriers, political conflicts, and poor infrastructure have hindered the growth of trade between member countries.
The SAARC region lacks adequate transport and communication infrastructure, which limits connectivity. While there have been efforts to enhance regional infrastructure, progress has been slow.
The emergence of other regional groupings, such as BIMSTEC, BBIN, and the Indian Ocean Rim Association (IORA), has diluted the focus on SAARC. Many countries, especially India, have prioritized these alternative platforms to engage in regional cooperation, leaving SAARC marginalized.
India, being the largest country in South Asia both in terms of population and economy, plays a crucial role in SAARC. However, India’s involvement in SAARC has been affected by its relationship with Pakistan.
India has been a key proponent of regional integration within SAARC. It has led initiatives such as SAFTA and pushed for increased trade and investment in the region.
India contributes significantly to SAARC’s programs, including its financial contributions to the SAARC Development Fund. India has also provided technical assistance to smaller SAARC nations, particularly in fields like information technology and education.
Due to the limitations of SAARC, especially because of Pakistan’s stance on terrorism, India has shifted its focus to other regional groupings like BIMSTEC and the BBIN Initiative. This shift has raised questions about SAARC’s relevance, as India looks for more productive avenues of regional cooperation.
SAARC’s future depends on the ability of its member states to set aside their political differences and prioritize regional cooperation. There is a need for institutional reform, stronger political will, and a focus on economic integration to unlock SAARC’s potential.
Reforming SAARC’s Decision-Making Process:
Moving from a consensus-based approach to a majority-based decision-making process could help overcome political deadlocks and make SAARC more effective.
Boosting Economic Integration:
SAARC needs to focus on trade liberalization, reducing non-tariff barriers, and improving connectivity to enhance intra-regional trade and investment.
Enhancing People-to-People Connectivity:
More initiatives focused on educational and cultural exchanges, as well as visa liberalization, could help foster regional solidarity and mutual understanding.
Addressing Regional Security Concerns:
A coordinated approach to tackling terrorism, transnational crime, and cybersecurity issues is essential for regional stability.
SAARC, while established with the vision of promoting regional cooperation, has faced several obstacles that have limited its effectiveness. However, its significance remains, particularly in fostering people-to-people connections and addressing common regional challenges. For UPSC aspirants, understanding SAARC’s history, achievements, challenges, and India’s role is critical for topics related to international organizations and India’s foreign policy.
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