SOUTH ASIAN ASSOCIATION FOR REGIONAL COOPERATION

(SAARC)

PRESENTED BYSUSHIL KUMAR

M.A(P),DEPARTMENT OF GEOGRAPHYDELHI SCHOOL OF ECONOMICS

INTRODUCTION In the era of globalization,formation of regional groupings is

the first step towards global integration.

Regional groupings are,most commonly,based upon the principles of a shared histories,geographical contiguity,core competencies,advantages associated with economy of scale

The concept of SAARC as a political and economic cooperation in south asia was first envisaged by Bangaledshi President Late Zia-Ur-Rahman in 1980

SAARC came into being in 1985 with Bangladesh,Bhutan,India,Maldives,Nepal,

Pakistan and Sri Lanka as founding members.Afghanistan joined SAARC later in 2007.

In 1983 ,the international conference held by Indian Minister

of External Affairs P.V Narasimha Rao in NEW Delhi,the foreign ministers of inner seven countries adopted the Declaration on SAARC and formally launched the Integrated Plan of Action(POA) initially in five areas of cooperation namely

1. Agriculture 2. Rural Development 3. Telecommunication 4. Meteorology and 5. Helth and Population Activities The SAARC Secretariat was established on 16 January 1987

and was inaugurated by late King Birendra Bir Bikram Shah of Nepal.

REGIONAL CENTERS The SAARC Secretariat is supported by following Regional

Centers established in Member States to promote regional co-operation

1.SAARC Agriculture Center (SAC),Dhaka,Bangladesh

2.SAARC Meteorogical Reserch Center(SMRC),Dhaka,Bangladesh

3.SAARC Tuberculosis and HIV/AIDS

Center(STAC)Kathmandu,Nepal

4.SAARC Documentation Center(SDC)New Delhi,India

5.SAARAC Human Resources Development Center(SHRDC)Islamabad,Pakistan

6. SAARAC Coastal Zone Management Center(SCZMC),Maldives

7. SAARC Information Center(SIC),Nepal

8 SAARC Energy Center(SEC),Pakistan

9. SAARAC Disaster Management Center(SDMC),India

10. SAARC Forestry Center(SFC) Bhutan

11. SAARC Cultural Center(SCC)Sri Lanka

PRINCIPLES

Respect for sovereignty, territorial integrity, political equality and independence of all member states.

Promoting peace, stability, amity and progress in the region, particularly respect for the principles of sovereign equality, territorial integrity, national independence,

Non-use of force and peaceful settlement of all disputes; Non-interference in the internal matters. Cooperation for mutual benefit. All decisions to be taken unanimously. All bilateral issues to be kept aside and only multilateral issues

to be discussed.

AIMS AND ISSUES 1 Lasting peace and prosperity in the indian subcontinent

2. South Asian Free Trade Area(SAFTA):SAFTA was envisaged primarly 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

It was also decided that Pakistan will host the next summit in 2016

China, which holds an observer status in the group, was seen actively promoting a more 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.

Pakistan, China's all weather friend, also vouched for a more participatory role for the observer nations in the summit process, indirectly advocating for a more Chinese involvement. Although no such proposal was accepted because of India's reservation

PARTICIPATING LEADERS

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.

Many observers have dismissed the SAARC summit for failing to achieve its full potential, and this overall sentiment was perhaps best summed up by Modi who said: “nowhere in the world are collective efforts more urgent than in South Asia; and, nowhere else is it so modest.”

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 percived to behave like a hegemon and Pakistan as obstructionist in india's ambitions to play a legitimate role commensurate with its achievments and capabilities.

Pakistan have tried to play China card against India either to get more concessions or pressurize it.In recent submit(november 2014),Pakistan pushed for enhanced role of china in SAARC.

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 neighbors 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.

China's economic power should be utilised in constructive way rather than holdin India's effort.

Following will be the key in SAARC success:1. Building trust2. Putting economics before politics3. Boosting up cultural cooperation and regional tourism4.Joint efforts to deter cross-border illegal

migration,terrorism,narcotics and drug traffickin 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 negativeThe 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. Trade 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

WAY FORWARD So what can be done?

Is SAARC doomed to failure or is there a way forward? One can envision two options for SAARC.

1. Option One is to give up SAARC as a non-starter and start looking for other options such as BIMSTEC or any other new group for economic upliftment of area or leave the members of SAARC to find their alternatives

2.Option two will be to go the whole hog and make efforts to make SAARC fully integrated, at least economically. Proponents of single currency for SAARC seem to take this approach. Neither of these approaches is appropriate, given the geo-political situation of today.

While SAARC has not met the expectations it has generated, the very fact that it gives opportunities for the leaders as well as the operating level officials to interact regularly and discuss issues of mutual concern is reason enough for SAARC to remain relevant.

Problems faced by the SAARC countries are similar and distinct from other regions. The solutions, therefore, are best found with mutual cooperation in the region. For this reason itself SAARC continues to be relevant

It will be unrealistic to talk of single currency when the two biggest nations of the region are not even on talking terms.

The feasible alternative, therefore, is to take small steps. Steps that will further integration, but are workable, given the geopolitical realities of the region.

What are these steps?

• One or two projects at the sub-regional level could be identified and vigorously implemented within a specific time frame. These projects, if successful, can show the benefits of mutual cooperation and could persuade the doubting Thomas's to join in.

• What is also required is for SAARC to concentrate its activities in core identified areas and not lose its direction by getting involved in too many activities. Since India is literally the pivot around which SAARC revolves, the major responsibility for making SAARC a success is upon India. It, therefore, needs to show willingness and undertake asymmetric responsibilities where required.

• Each SAARC country also has to realize that while the political situation in individual countries may keep on changing, the economic situation does not change so rapidly and, as it exists, requires really serious efforts for improvement.

• At the end of the day, it is the economy which matters for the impoverished people of the region. SAARC can and should be the instrument for leaders of the region to improve the economic situation of the people of the region, even if to begin with, it is in baby steps.

• THANKS