South Asian Association for Regional Cooperation

(SAARC)
The South Asian Association for Regional Cooperation (SAARC) is an economic and political organization
of eight countries in South Asia. It was established in 1985 when the Heads of State of Bangladesh,
Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka formally adopted the charter. Afghanistan joined
as the 8th member of SAARC in 2007. To date, 18th Summits have been held and Nepal’s former Foreign
Secretary is the current Secretary General of SAARC. The 19th Summit will be hosted by Pakistan in 2016.
SAARC was founded in Dhaka on 8 December 1985. Its secretariat is based in Kathmandu, Nepal.
The organization promotes economic development and regional integration. It launched the South
Asian Free Trade Area in 2006.[6] SAARC maintains permanent diplomatic relations at the United
Nations as an observer and has developed links with multilateral entities, including the European
Union. However, due to the geopolitical conflict between India and Pakistan and the situation in
Afghanistan, the organization has been suspended for a long time, and India currently cooperates
with its eastern neighbors through BIMSTEC (Bay of Bengal Initiative for Multi-Sectoral Technical and
Economic Cooperation).

SAARC – Historical background

1. The idea of regional cooperation in South Asia was first initiated in May 1980. The
Foreign Secretaries of the then seven countries met for the first time in Colombo
in April 1981. Five key areas for regional cooperation were identified and with
time other important areas were added later.
2. The South Asian Association for Regional Cooperation was set up when its
Charter was formally adopted on 8 December 1985 by the Heads of State or
Governments of India, Bangladesh, Maldives, Bhutan, Nepal, Sri Lanka, and
Pakistan.

Also, learn more about the Bay of Bengal Initiative on Multi-Sectoral

Technical and Economic Cooperation BIMSTEC), a multilateral organization
that is of relevance to India from a Geo-political perspective.

Areas of Cooperation Among SAARC Nations

 Agriculture and Rural Development
 Human Resource Development and Tourism
 Economic, Trade and Finance
 Social Affairs
 Environment, Natural Disasters and Biotechnology
 Education, Security and Culture and Others
 Information and Poverty Alleviation
 Energy, Transport, Science and Technology
SAARC – Objectives
The main motto of the organization is to work towards a common goal of
achieving social, cultural, and economic growth for all the people within the
South Asia region.

The objectives of SAARC, as defined in its charter, are as follows:

 Promote the welfare of the people 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 cooperation with other developing countries
 Strengthen cooperation among themselves in international forums on matters of
common interest; and
 Cooperate with international and regional organizations with similar aims and
purposes.

SAARC 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.

SAARC – Structure
SAARC has the following structure:

1. Council – It is the apex policy-making body. The council is represented by

government heads of the respective member countries.
2. Council of Ministers – The Council of Ministers comprises the foreign ministers
and they meet generally two times annually.
Council of Ministers – Functions

1. Policy formulation
2. Reviewing the progress of regional cooperation
3. Identifying newer areas of cooperation, and
4. Setting up additional mechanisms as required

Standing Committee

It comprises the foreign secretariat of the member countries. The major

functions of the standing committee are stated below:

1. To monitor and coordinate the programs

2. To deal with modalities of financing
3. To mobilize cooperation within and outside the region

Programming Committee

It comprises senior officials of the member governments. The major

functions of this committee are as follows:

1. Finalizing the annual meet schedule

2. Budget scrutinization
3. External activities assigned by the standing committee

Technical Committee

It consists of representatives of the member nations. The major functions of

the committee are as follows:

1. To formulate projects and monitor the same

2. To submit reports

Secretariat

It is headed by the Secretary-general appointed by the Council of Ministers.

The main functions of the Secretariat are as follows:

1. Coordination and execution of activities conducted by SAARC

2. Monitoring the SAARC meetings
3. Work as a communication link between SAARC and other international summits
and forums.

SAARC – Regional Centres

Regional Centres established in Member Countries are the supporting pillars
to the secretariat for promoting regional cooperation. These Regional
Centres are managed by respective Governing entities comprising
representatives from Member States, SAARC Secretary-General, and the
Ministry of Foreign/External Affairs of the host government.

The Regional Integrated Programme of Action covers the following aspects:

1. Agriculture and Rural Development

2. Women, Youth, and Children
3. Health and Population Activities
4. Science and Technology and Meteorology
5. Environment and Forestry
6. Human Resource Development, and
7. Transport

Working Groups have also been established in the following areas:

1. Biotechnology
2. Information and Communications Technology
3. Intellectual Property Rights
4. Energy
5. Tourism

Significance of SAARC
1. SAARC is the world’s most densely populated region and one of the most fertile
areas. It comprises 3% of the world’s area, 21% of the world’s
population and 3.8% (US$2.9 trillion) of the global economy.
2. SAARC countries synergize their actions as they have common traditions, dress,
food and culture, and political aspects.
3. The SAARC nations have problems and solutions to the problems in common
such as poverty, illiteracy, malnutrition, natural disasters, internal conflicts,
industrial and technological backwardness, low GDP, and poor socio-economic
conditions. These nations uplift their living standards by creating common areas
of development.

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

SAARC – Specialized Bodies

The specialized bodies are created by the member states and their structure
is different from the regional centers. The management is taken care of by
the representatives of the member states the Ministry of Foreign Affairs of
the host government.

The different SAARC specialized bodies are given below:

1. SAARC Arbitration Council (SARCO) – Pakistan

2. SAARC Development Fund (SDF) – Bhutan
3. South Asian University (SAU) – India
4. South Asian Regional Standards Organization (SARSO) – Dhaka

A detailed description of SAARC specialized bodies is given below-

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.

Challenges with SAARC

1. Relation between India and Pakistan escalated tensions and conflicts
severely hampers the prospects of SAARC.
2. The frequency of SAARC meetings is low. More engagements between member
nations are required instead of biennial meetings SAARC nations should meet
annually.
3. The energy and resources are diverted due to the Broad area of cooperation.
4. The implementation of the SAARC Free Trade Agreement has not been
satisfactory.

Way Forward with SAARC

1. In a region increasingly targeted by Chinese investment and loans, SAARC could
be a common platform to demand more sustainable alternatives for
development, or oppose trade tariffs together, or demand better terms for South
Asian labour around the world.
2. 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.
3. The member countries should explore the potential of SAARC in maintaining
peace and stability in the region.
4. 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.