TABLE OF CONTENTS

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PARTICULARS
Introduction
History of SAARC
Member States
Timeline (SAARC Summits)
Need Of SAARC
Relevance of SAARC
Conclusion
Bibliography

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INTRODUCTION
The South Asian Association for Regional Cooperation (SAARC) is an
organization of South Asian nations, founded in December 1985 and dedicated to
economic, technological, social, and cultural development emphasizing collective
1

self-reliance. Its seven founding members are Bangladesh, Bhutan, India,

Maldives, Nepal, Pakistan, and Sri Lanka. Afghanistan joined the organization in
2007.It is an economic and geopolitical organization. The SAARC Secretariat is
based in Kathmandu, Nepal.

The idea of regional political and economical cooperation in South Asia was first
raised in 1980 and the first summit was held in Dhaka on 8 December 1985, when
the
organization
was
established
by
the
governments
of Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka. Since
then the organization has expanded by accepting one new full member,
Afghanistan and several observer members.
The SAARC policies aim to promote welfare economics, collective self-reliance
among the countries of South Asia, and to accelerate socio-cultural development in
the region. The SAARC has developed external relations by establishing
permanent diplomatic relations with the EU, the UN (as an observer), and other
multilateral entities. The official meetings of the leaders of each nation are held
annually whilst the foreign ministers meet twice annually. The 18th SAARC
Summit is scheduled to be held in Kathmandu in November 2014.
The representation of SAARC as major regional block is increasing and is rivaling
the Association of Southeast Asian Nations (ASEAN), African Union and
European Union. China has sought to become a member of SAARC, besides four
other countries Mauritius, Iran, Australia and Myanmar want to graduate from
observer nations to permanent ones.

HISTORY OF SAARC
The idea of co-operation in South Asia was discussed initially in three
conferences: the Asian Relations Conference held in New Delhi on April 1947; the
Baguio Conference in the Philippines on May 1950; and the Colombo Powers
Conference held in Sri Lanka on April 1954.
2

In the ending years of the 1970s, the seven inner South Asian nations that
included Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka
agreed upon the creation of a trade bloc and to provide a platform for the people of
South Asia to work together in a spirit of friendship, trust and understanding.
Bangladesh president Ziaur Rahman later addressed official letters to the leaders of
the countries of the South Asia, presenting his vision for the future of the region
and the compelling arguments for region. During his visit to India in December
1977, President Ziaur Rahman discussed the issue of regional cooperation with the
then Indian Prime Minister, Morarji Desai. In the inaugural speech to the Colombo
Plan Consultative Committee which met in Kathmandu also in 1977, King
Birendra of Nepal gave a call for close regional cooperation among South Asian
countries in sharing river waters. After the USSR's intervention in Afghanistan,
the efforts to established the union was accelerated in 1979 and the resulting rapid
deterioration of South Asian security situation. The idea of regional cooperation in
South Asia was first raised in November 1980.
The
Bangladesh's
proposal
was
promptly
endorsed
by Nepal, Sri
Lanka, Bhutan and the Maldives but India and Pakistan were skeptical initially.
The Indian concern was the proposals reference to the security matters in South
Asia and feared that President Zia Rehman's proposal for a regional organization
might provide an opportunity for new smaller neighbors to renationalize all
bilateral issues and to join with each other to gang up against India. Pakistan
assumed that it might be an Indian strategy to organize the other South Asian
countries against Pakistan and ensure a regional market for Indian products,
thereby consolidating and further strengthening Indias economic dominance in the
region.
However, after a series of quiet diplomatic consultations between South Asian
foreign ministers at the UN headquarters in New York from August to September
1980, it was agreed that Bangladesh would prepare the draft of a working paper for
discussion among the foreign secretaries of South Asian countries. The foreign
secretaries of the inner seven countries again delegated a Committee of the
Whole in Colombo on September 1981, which identified five broad areas for
regional cooperation. New areas of co-operation were added in the following years.
In 1983, the international conference held by Indian Minister of External
Affairs PVN Rao in New Delhi, the foreign ministers of the inner seven countries
adopted the Declaration on South Asian Association Regional Cooperation
(SAARC) and formally launched the Integrated Program of Action (IPA) initially
3

in five agreed areas of cooperation namely, Agriculture; Rural Development;

Telecommunications; Meteorology; and Health and Population Activities.
Officially, the union was established in Dhaka with Kathmandu being union's
secretariat-general. The first SAARC summit was held in Dhaka on 78 December
1985 and hosted by the President of Bangladesh Hussain Ershad. The declaration
signed by King of Bhutan Jigme Singye, President of Pakistan Zia-ul-Haq, Prime
Minister of India Rajiv Gandhi, King of Nepal Birendra Shah, President of Sri
Lanka JR Jayewardene, and President of Maldives Maumoon Gayoom.

MEMBER NATIONS
There are 8 member nations and 8 Observers nation of SAARC.

Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, Sri Lanka and Afghanistan
are the 8 Member nations.
States with observer status include Australia, China, the European
Union, Iran, Japan, Mauritius, Myanmar, South Korea and the United States.

India
India, the largest country in the region was also apprehensive in joining the
regional association. India felt that the proposal of Bangladesh President Zia
probably had an indirect Western sponsorship. This was in the context of the
second cold war with the Soviet military intervention in Afghanistan. A South
Asian regional association could be the American mechanism to counter Soviet
influence. This would result in not only the incursion of external powers in the
region but also an anti-Soviet and pro-US South Asian front, which would be
incompatible with India's regional and broader strategic interests. Also India
believed that the proposed South Asian forum could be used by the smaller
neighbors to put collective pressures on it (India) on matters affecting them
collectively and individually in relation to India. Thus, in this manner the regional
association would enable neighbors to, "gang up", against India. However, India
could not reject the idea and thus proposed two principles for participation. That
the organization would not discuss bilateral issues and that all the decisions would
be taken on the basis of unanimity. India was of the view that bilateral stresses and
strains should not impinge on regional cooperation. Further, the objective of India
was to try to pursue regional co-operation autonomously without allowing it to be
subjected to the vicissitudes of bilateral co-operation. India thus approached the
5

association with a belief that bilateral relations and regional cooperation could be
completely compartmentalized. By adopting such an approach the dynamics of the
bilateral relations to influence the regional association or vice versa, of the
association to influence bilaterally were being deliberately overlooked.

Pakistan
Pakistan was initially apprehensive of joining the regional association primarily for
two reasons. First, that the forum would further India's domination over the
regions' states in an institutionalized manner. Secondly, Pakistan was also wary of
deeper involvement in the South Asian region since it would cast a doubt on the
credibility and seriousness of its efforts to develop closer ties with the Islamic
countries of West Asia. Pakistan finally decided to join the forum because it was
unwilling to isolate itself regionally. Further, according to an observer from
Pakistan, the regional advantage of participating in SAARC was that the
arrangement could if the need arose, "come to deflect the weight of India" vis-a-vis
its smaller South Asian partners. It was emphasized that Pakistan, Bangladesh, Sri
Lanka, Maldives, Bhutan and Nepal had very good, if not ideal relations with each
other. However none of the six states could be said to be enjoying tension free
relations with New Delhi. Of all the differences, the Indo-Pak relations, it was
stated, were not conducive to regional cooperation. It is thus evident that just as the
blame for the existence of a conflictual relationship was put on India, the onus for
improvement in the state of affairs was also exclusively put on New Delhi.

Bangladesh
Bangladesh was the country which formally proposed the idea of regional cooperation and pursued it. President Zia personally took the idea of the SAARC to
all the South Asian capitals during 1977-80 and discussed the proposal for an
institutional framework for co-operation among these countries. Some are of the
opinion that it may have been partly conditioned by President Zia's own domestic
compulsions for achieving a breakthrough in foreign policy initiatives. It could
also be that Bangladesh had unsuccessfully tried to force a solution on India on the
Ganges water problem by internationalizing it. Having failed to do so, it wanted to
adopt a regional mechanism.

Nepal
6

Nepal considers itself to be one of the first countries to speak of regional cooperation, though the idea was formally suggested for the first time by Bangladesh.
King Birendra had for the first time spoken of some kind of regional co-operation
in 1976 while addressing the Fifth Non-Aligned Summit Conference in Colombo,
Sri Lanka. Nepal was of the view that its vast water resources could be tapped
through co-operation of other countries for the general benefit of the region. Nepal
is not only a landlocked country, but has borders with India on three sides. On its
north is situated the Tibet region of China. Thus it is dependent on India in many
respects including having transit to the sea. By trying to expand the number of
partners to exploit its resources and having a regional approach, Nepal reduces its
dependence on India. SAARC was to be one of the most important aspects of its
foreign policy. At the inaugural SAARC Summit in Dhaka, Nepal stated that a
priceless resource exists (untapped water resource) waiting to be harnessed for the
benefit of the people of the region. This enthusiasm gets clearly reflected in later
years when Nepal showed its willingness to host the various meetings and the fact
that the SAARC Secretariat was finally established in Katmandu. According to
some in Nepal, the most ardent expectation (of Nepal in 1985) from the SAARC
proposal was that it should be the most effective instrument for its security and its
political role in the region. That since regional cooperation was to be on the basis
of respect for the principles of sovereign equality, territorial integrity, political
independence and mutual benefitsthe support which Nepal presumed was
coming from India to the opponents of monarchy and those championing the cause
of democracy would no longer be forthcoming. Thus, in this manner the stability
and the continuity of the monarchy could be secured.

Sri Lanka
Sri Lanka responded positively to the regional co-operation proposal. It was the
first country to have hosted any SAARC meeting. Its enthusiasm was not in any
way related to the desire to achieve regime security because it was already an
established democracy However, the country was facing a very grave problem with
regard to its ethnic crisis which deepened as preparatory efforts towards regional
co-operation were being made and this brought strains in Indo-Sri Lankan
relations. In the initial years official meetings were disrupted by these differences.
Sri Lanka considered the role which India would play as very vital to the
association. This was clearly articulated in the inaugural session of the first summit
in 1985, when President Jayewardene said that the member countries must first
trust each other. That India being the largest country in every way could by deeds
and words create the confidence amongst the members, so necessary to make a
7

beginning. This clearly indicated to the expectations Sri Lanka had from India and
that the lack of trust present.

Bhutan
Bhutan saw the association as a mechanism through which it could expand its
foreign and economic relations with other countries without antagonizing India.

Maldives
For Maldives, the association of the seven countries was an appropriate forum
from where it could air views effectively. As seen, in later years the association
was used to air its concerns regarding protection and security of small states.

Afghanistan
For the first time in its 22-year-old history, SAARC member states welcomed the
admission of Afghanistan into the regional grouping. The issue of Afghanistan
joining SAARC generated a great deal of debate in each member state, including
concerns about the definition of South Asian identity because Afghanistan is a
Central Asian country. The SAARC member states imposed a stipulation for
Afghanistan to hold a general election; the non-partisan elections were held in late
2005. Despite initial reluctance and internal debates, Afghanistan joined SAARC
as its eighth member state in April 2007.

Observers
States with observer status include Australia, China, the European Union, Iran,
Japan, Mauritius, Myanmar, South Korea and the United States. US, South Korea
and the EU were granted observer status in 2006 whereas Iran and Mauritius were
granted status in 2008. Since the Fourteenth SAARC Summit, Observers have
been invited to participate in the inaugural and closing Sessions of SAARC
Summits. With the admission of Observers to SAARC, a number of proposals have
been made by some Observers to engage in mutually beneficial cooperation and
some of the proposals are currently under implementation. SAARC-Australia
Project on `Developing capacity in cropping systems modelling for sustainable use
of water resources to promote food security in South Asia, was inaugurated on
August 2011 at the SAARC Agriculture Centre, Dhaka.

Potential Future Members

8

Myanmar and China have expressed interest in upgrading their status from an
observer to a full member of SAARC. Russia has applied for observer status
membership of SAARC. Turkey applied for observer status membership of
SAARC in 2012. South Africa has been participated in various meetings in the
past.

Above diagram shows the relationship between various Asian regional

Organisations.

TIMELINE (SAARC SUMMITS)

Summits which are the highest authority in SAARC, were supposed to be held
annually.
The Country hosting the Summit also holds the Chair of the Association.

1985: The Heads of State or Government at their First SAARC Summit held in
Dhaka on 7-8 December adopted the Charter formally establishing the South Asian
Association for Regional Cooperation (SAARC).In the declaration of the First
SAARC Summit the Member States expressed concern at the deteriorating
9

international political situation and the unprecedented escalation of the arms race,
particularly in its nuclear aspect. They recognized that mankind was confronted
with the threat of self-extinction arising from a massive accumulation of the most
destructive weapons ever produced and that the arms race intensified international
tension and violated the principles of the UN Charter. The Member States called
upon the NWS to undertake negotiations on a CTBT leading to the complete
cessation of testing, production, and deployment of nuclear weapons. In this
connection, they welcomed the recent meeting between President Reagan and
General Secretary Gorbachev in Geneva and expressed the hope that the meeting
would have a positive effect on international peace and security.

1986: In the declaration of the Second SAARC Summit in November, in

Bangalore, India, the Member States noted with deep disappointment that the
promise held out by the US-Soviet Summit in Reykjavik could not be realized.
They, however, noted with satisfaction that the proposals made at the Summit were
still on the table and expressed the earnest hope that the negotiations would be
resumed without delay so that a decisive step could be taken towards realizing the
ultimate goal of eliminating nuclear weapons altogether. The Member States called
for the early conclusion of a CTBT.

1987: At the Third SAARC Summit in Kathmandu, Nepal, there was

disagreement over a proposal by Pakistan for a South Asian treaty banning nuclear
weapons; the final declaration simply noted SAARC's resolve to "contribute" to
nuclear disarmament. The States also called for the early conclusion in the Geneva
CD of a CTBT and a Convention to Ban Chemical Weapons, declared their
intention to continue their efforts to contribute to the implementation of the
objective of halting the nuclear arms race and eliminating nuclear weapons.

1988: In the declaration of the Fourth SAARC Summit in December, in

Islamabad, Pakistan, the Member States called for the early conclusion by the CD
of a CTBT and a Convention to Ban Chemical Weapons. They declared their
intention to continue their efforts to contribute to the realization of the objective of
halting the nuclear arms race and eliminating nuclear weapons, as well as declared
their resolve to support every effort to conclude a treaty prohibiting vertical and
horizontal proliferation of nuclear weapons.

1990: In the declaration of the Fifth SAARC Summit in November, in Mal,

Maldives, the Member States expressed the hope that the talks between the United
States and USSR on arms control would culminate in the conclusion of an
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agreement for substantial reduction in their nuclear arsenals leading to the total
elimination of nuclear weapons. While welcoming the measures being considered
for arms reduction at the global level, they were convinced that the objective could
be best achieved through the promotion of mutual trust and confidence among the
Member States. They underlined the inherent relationship between disarmament
and development and called upon all countries, especially those possessing the
largest nuclear and conventional arsenals, to re-channel additional financial
resources, human energy, and creativity into development. Member States
expressed their support for the banning of chemical weapons and early conclusion
of a CTBT. In this context, they welcomed the convening of the UN Conference in
January 1991 to consider amendments to the Partial Test Ban Treaty to convert it
into a CTBT.

1991: In the declaration of the Sixth SAARC Summit in December, in Colombo,

Sri Lanka, the Member States assessed current international developments in the
political sphere particularly those that affected the lives of the people of South
Asia. They noted the changing power structures in international relations and the
reduction of confrontations and tensions, particularly among the United States and
USSR. These have contributed to the receding of the threat of nuclear
confrontation and to agreements on disarmament measures. The Member States
hoped that these developments would restrain the pursuit of military power in all
areas of the world and expressed hope that the peace dividend would be used for
promoting the further development of developing countries. They welcomed the
trend towards popularly based democratic governments in different parts of the
world, including in South Asia.

1993: In the declaration of the Seventh SAARC Summit in April, in Dhaka,

Bangladesh, the Member States noted a number of recent positive developments in
the area of nuclear, chemical, and conventional disarmament, including the
agreements on bilateral arms reductions between the United States and Russia.
They expressed their hope that the implementation of the far-reaching arms
reduction agreed to in the Washington Agreement of June 1992 and START II
signed in Moscow in January 1993 would be successfully carried out. The Member
States urged all NWS to collectively endeavor to attain the ultimate goal of
complete elimination of nuclear arsenals in the shortest possible time.

1995: In the declaration of the Eighth SAARC Summit in May 1995, in New
Delhi, India, the Member States noted that while the international community had
successfully created a norm against chemical and biological weapons, it had,
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unfortunately, been unable to do the same with regard to nuclear weapons. They
expressed the conviction that more needed to be done and at a far greater pace.
They reiterated that the utmost priority was to be given to nuclear disarmament,
given the danger posed by nuclear weapons. The Member States urged the CD to
negotiate an international convention prohibiting the use or threat of use of nuclear
weapons under any circumstances and to undertake negotiations for the complete
elimination of all nuclear weapons within a specified period of time.

1997: In the declaration of the Ninth SAARC Summit in May, in Mal, Maldives,
the Member States recognized the need for the international community to pursue
nuclear disarmament as a matter of highest priority. In this regard, they recognized
the need to start negotiations through the CD and to establish a phased program for
the complete elimination of nuclear weapons within a specified framework of time,
including a Nuclear Weapons Convention.

1998: In the declaration of the 10th SAARC Summit in July, in Colombo, Sri
Lanka, the Member States were of the view that stability, peace, and security in
South Asia could not be considered in isolation from global security environment.
They noted that the great power rivalry, which the Non-Aligned Movement (NAM)
had consistently opposed, no longer posed a serious threat and the danger of a
global nuclear conflagration had abated. However, some States still sought to
maintain huge arsenals of nuclear weapons and the NPT and the Comprehensive
Nuclear Test Ban Treaty (CTBT), to which some SAARC Members were
signatories, had not led to any progress towards nuclear disarmament nor
prevented proliferation. The Member States underscored their commitment to the
complete elimination of nuclear weapons and the need for promoting nuclear
disarmament on a universal basis, under effective international control. They
recognized that global nonproliferation goals could not be achieved in the absence
of progress towards nuclear disarmament and in this context called upon all NWS,
whether party or non-party to the NPT, to engage constructively through a
transparent and credible process of negotiations at the CD. The Member States
urged the CD to commence negotiations on a comprehensive, universal, and nondiscriminatory international instrument prohibiting the use or the threat of nuclear
weapons as well as eliminating such weapons in existing arsenals.

2002: The 11th SAARC Summit was convened in Kathmandu on 4-6 January. In
the Summit declaration, the Heads of State or Government were of the view that
stability, peace, and security in South Asia should be promoted together with
efforts to improve the global security environment. They underscored their
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commitment to general and complete disarmament including nuclear disarmament

on a universal basis, under effective international control. They agreed that global
nonproliferation goals could not be achieved in the absence of progress towards
nuclear disarmament and in this context called upon all nuclear weapon States
(NWS), whether party or non-party to the Non-Proliferation Treaty (NPT), to
engage constructively through a transparent and credible process of negotiations at
the Conference on Disarmament (CD). The leaders also recognized the linkage
between disarmament and development.

2004: Twelfth SAARC Summit of the Heads of State and Government was
convened in Islamabad, from 4-6 January. At the Summit, leaders addressed means
of increasing regional cooperation in the areas of economics; poverty alleviation;
science and technology development; social, cultural and environmental issues;
and terrorism prevention. They signed the Additional Protocol to the SAARC
Regional Convention on the Suppression of Terrorism approved days earlier by the
Council of Ministers. Furthermore, counter- terrorism was a major topic addressed
in the Summit Declaration. Heads of State and Government condemned terrorist
violence in all forms and stated that terrorism continues to be a major threat in
South Asia, as well as a challenge to all States worldwide. They also stressed that
terrorism violates the United Nations and SAARC charters and reaffirmed their
commitment to the SAARC Regional Convention on Suppression on Terrorism in
addition to other relevant international conventions to which they are party.
Members decided to implement practical measures and adapt domestic legislation
to prevent and suppress terrorist financing. The Ministers also adopted several
other documents, including the final draft of a document establishing a South Asian
Free Trade Area and a Social Charter.

2005: On 22 February, Iran's foreign minister Kamal Kharrazi indicated Iran's

interest in joining SAARC, stating that the country's borders with South Asia could
provide the region with "East-West connectivity." The 13th Annual SAARC
Summit was held in Dhaka from 12-13 November. The summit dealt specifically
with areas such as poverty alleviation, economic cooperation, counter-terrorism,
disaster management, and the 'implementation of SAFTA. The Islamic Republic of
Afghanistan was welcomed as the eighth member of SAARC. China and Japan
were accorded observer status. Member countries adopted the 53-point Dhaka
declaration aimed at focusing regional cooperation in South Asia to accelerate
growth and progress. They expressed their determination to unite in their efforts to
prevent and combat terrorism, noting United Nations Security Council Resolution
1373 in this regard. They also emphasized the need for an early conclusion of a
13

Comprehensive Convention on International Terrorism. Member states agreed to

strengthen their cooperation in important areas such as exchange of information,
coordination, and cooperation among their relevant agencies. Leaders expressed
satisfaction at the ratification of the Additional Protocol to the SAARC Convention
on Suppression of Terrorism by all member states and called for establishing
effective mechanisms for its implementation. Recognizing the specific
vulnerability of the sovereignty and independence of small states, they resolutely
committed to protect the interest and security of these states through the pursuit of
appropriate policies and actions. Other key events included endorsement of the
SDGs and establishment of the SAARC Poverty Alleviation Fund. Member states
also participated in bilateral talks on the sidelines of the summit.

2006: The first SAARC Conference of Home Ministers convened in Dhaka on 11

May. The agenda was dominated by issues of terrorism and the trafficking of
humans and drugs. Ministers adopted a nine point resolution to fight terrorism and
drug trafficking in the region by expediting the existing SAARC mechanism and
sharing information and experiences among member states. A proposal to establish
a regional law enforcement agencySAARCPOLwas referred to ministers for
further study.

2007: The Fourteenth Summit held on 3 4 April, welcomed the Islamic

Republic of Afghanistan as a full fledged member of SAARC. China, Japan,
European Union, Republic of Korea United States of America, and Iran were
welcomed as observers. At the summit, the members also discussed
implementation strategies of the SAARC development fund, a SAARC food bank
and the South Asia University. The Heads of State or Government again
underscored the importance of controlling terrorism in the region, calling on
deepened cooperation and improvements on implementing the SAARC Regional
Convention on Suppression of Terrorism and the Additional Protocol to the
SAARC Regional Convention. Member states continued to stress the importance
of achieving a Comprehensive Convention on International Terrorism.

2008: The fifteenth summit of SAARC was held in Colombo, Sri Lanka on 13
August 2008. The issues discussed were regional cooperation, partnership for
growth for the peoples of South Asia, connectivity, energy, the environment, water
resources, poverty alleviation, the SAARC Development Fund, transport,
information and communications technology development, science and technology,
tourism, culture, the South Asian Free Trade Area, the SAARC Social Charter,
14

women and children, education, combating terrorism, and the admission of

Australia and Myanmar as observers.

2010:

The sixteenth summit was held in Thimpu, Bhutan on 2829 April

2010. Bhutan hosted the SAARC summit for the first time. This was marked the
silver jubilee celebration of SAARC that was formed in Bangladesh in December
1985. Climate change was the central issue of the summit with summit's theme
"Towards a Green and Happy South Asia".

2011: The Seventeenth Summit was held from 10-11 of November 2011 in Addu
City, Maldives. Three areas of cooperation were highlighted; trade, transport and
economic integration; security issues such piracy and climate change; and good
governance were also discussed.

2014: The Eighteenth Summit was held from 26-27 of November 2014 in
Kathmandu, Nepal. The Leaders recognized that the Post-2015 Development
Agenda, following its adoption at the UN, would present opportunities to
compliment national and regional efforts on sustainable development. They
directed to initiate an Inter-Governmental process to appropriately contextualize
the Sustainable Development Goals (SDGs) at the regional level.
Following table shows the Summit dates along with respective Host City and Host
Leader
No

Date

Country

Host

Host leader

1st

78 December 1985
1617 November
1986

Bangladesh

Dhaka

Ataur Rahman Khan

India

Bangalore

Nepal

Kathmandu

Pakistan

Islamabad

5th

24 November 1987
2931 December
1988
2123 November
1990

Jayanth M Gowda
Marich Man Singh
Shrestha

Maldives

Mal

6th
7th
8th

21-December 1991
1011 April 1993
24 May 1995

Sri Lanka
Bangladesh
India

Colombo
Dhaka
New Delhi

2nd
3rd
4th

15

Benazir Bhutto
Maumoon Abdul
Gayoom
Ranasinghe
Premadasa
Khaleda Zia
P. V. Narasimha Rao

9th

1214 May 1997

Maldives

Mal

10th
11th

2931 July 1998

46 January 2002

Sri Lanka
Nepal

Colombo
Kathmandu

12th

Pakistan

Islamabad

Bangladesh
India
Sri Lanka
Bhutan

Dhaka
New Delhi
Colombo
Thimphu

Khaleda Zia
Manmohan Singh
Mahinda Rajapaksa
Jigme Thinley

17th

26 January 2004
1213 November
2005
34 April 2007
13 August 2008
2829 April 2010
1011 November
2011

Maumoon Abdul
Gayoom
Chandrika
Kumaratunga
Sher Bahadur Deuba
Zafarullah Khan
Jamali

Maldives

Addu

Mohammed Nasheed

18th
19th

2627 November
2014
TBA 2016

13th
14th
15th
16th

Sushil Koirala
Nepal
Pakistan

Kathmandu
Isalamabad

Nawaz Shariff

NEED OF SAARC
Regional integration was traditionally seen as a harmonization of trade policies
leading to deeper economic integration, with political integration as a possible
future result. The concept of regionalism refers to a transformation of a particular
region from relative heterogeneity to
increased homogeneity with regard to a number of dimensions, the most important
being culture, security, economic policies and political regimes. A certain level of
sameness is necessary but not a sufficient condition. On the level of interregional
relations the behaviour of one region affects the behaviour of other regions.
South Asia, comprising Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal,
Pakistan and
Sri Lanka is home to 1.47 billion people; one-fifth of the worlds population.
Within this area, almost half of the population lives below the poverty line,
making it one of the poorest regions of the world. Vast majorities of the people are
illiterate, without access to proper health facilities and suffers from many negative
16

social factors. Considering the regions social, economic and political problems,
the SAARC was conceived as a regional organisation which could alleviate
problems and put individual states on the path to growth.
Below table shows the population and demography of the region.

Below is the Poverty and HDI index of the region, Sri Lanka being the only
country with High HDI

South Asia is one of the least economically integrated regions of the world. Intraregional trade is just about five per cent of total official trade. The contrast with
other sub-regions of Asia let alone other parts of the world is sobering. For
instance, intra-regional trade in East Asia accounts for over 50 per cent of total
trade. The current situation in South Asia seems all the more stark when we set it
against its past record as well as its future potential. Before 1947, this region
boasted of more or less open borders, allowing for easy movement of goods and
services. Furthermore, the subcontinent also enjoyed close economic ties with
other parts of Asia. The regional arc stretching from Kolkata to Singapore was a
vibrant network of trade, finance and entrepreneurs that formed the economic
heartland of the British empire in Asia. South Asia does not have to rest on its
history. It continues to have tremendous potential to grow through trade. The
region has the highest population density in the world. It has a large number of
17

cities close to the borders. And there is considerable cultural, ethnic and linguistic
overlap of populations across the borders.
The experience of colonialism led the newly independent countries with the
notable exception of Sri Lanka to regard the idea of an open trading system with
some suspicion and to pursue more economic policies and plans.
India and Pakistan also struggled to come to terms not only with the political
consequences of Partition but also with its economic implications. The two
countries were at odds on economic issues ranging from division of assets to
exchange rates differences that put paid to the idea of free trade between them. The
problem was compounded by Indias propensity to treat its borders as fences to
keep others out rather than using them as gateways for the movement of goods,
people and ideas. The under-development of Indias own border areas, which were
wont to be seen as buffer zones, undermined Indias ability to promote regional
trade.
These economic issues have been overlaid by political differences. Reconciling the
two is not all that simple. Economic affairs tend to have win-win logic. It is easy to
see how cooperative exchange could work to the material benefit of all parties. But
in politics moral considerations such as identity and honour can outweigh material
interests. Whats more, if political differences have a national security angle to
them, it becomes all the more difficult for the logic of economic integration to
assume primacy. Economic affairs are about absolute advantages accruing from
interchange, but security affairs are about relative advantages gained by one side or
another.
The issues will not go away any time soon. But there are some indications that
South Asian countries are willing to try according greater importance to economic
linkages as opposed to political and security considerations. Indias neighbors are
slowly realizing the tremendous opportunity that India presents for their growth
prospects. Indias free trade agreements with Sri Lanka and Bhutan, and the trade
and transit agreement with Nepal have highlighted the potential benefits of
regional economic integration. India too has understood the fact that allowing its
neighbors to partake of its growth is essential both to draw the sting from political
differences and to enable India to play a role on the global stage.
18

Afghanistan which joined the group in 2007 can reap benefits from entre-port trade
between Central Asian countries and the rest of SAARC. Moreover, even today,
Afghanistan is seen as a viable doorway for South Asian countries for access to the
oil and gas of Central Asian Republics like Tajikistan, Turkmenistan, and
Uzbekistan. Thus, in order to promote economic growth and reduce poverty in
Afghanistan, enhancing its cross-border and transit trade with neighboring
countries is a must. Road and railway connectivity must be promoted on a burdensharing basis wherein neighbours share the costs.
SAARC provides a platform for the peoples of South Asia to work together in a
spirit of friendship, trust and understanding. It aims to accelerate the process of
economic and social development in Member States.
The objectives of the association as defined in the SAARC Charter are:
To promote and strengthen collective self-reliance among the countries of
South Asia
To contribute to develop mutual trust, understanding and appreciation of one
anothers problem
To promote active collaboration and mutual assistance in the economic,
social, cultural, technical and scientific fields

To strengthen cooperation with other developing countries

To strengthen cooperation among themselves in international forums on
matters of common interest
To cooperate with international and regional organizations with similar aims
and purposes.
Cooperation in the SAARC is based on respect for the principles of sovereign
equality, territorial integrity, political independence, noninterference 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 members.
Decisions are taken on the basis of unanimity. Bilateral and contentious issues are
excluded from the deliberations of SAARC.
Though economic cooperation among South Asian nations was not a new
phenomenon yet the quest for economic integration remained inhibited by the
colonial heritage of these countries.
19

Members of SAARC have agreed on below 5 areas of co-operation

Agriculture and Rural Development
Telecommunications, Science, Technology and Meteorology
Health and Population Activities
Transport
Human Resource Development
Recently, high level Working Groups have also been established to strengthen
cooperation in the areas of Information and Communications Technology,
Biotechnology, Intellectual Property Rights, Tourism, and Energy. Given the
emphasis laid down at successive Summits on the need to expand the areas of
cooperation and strengthen the regional cooperation, a number of other areas have
been included in the SAARC agenda.
Over the years, the SAARC members have expressed their unwillingness to sign a
free trade agreement. Though India has several trade pacts with the Maldives,
Nepal, Bhutan and Sri Lanka, similar trade agreements with Pakistan and
Bangladesh have been stalled due to political and economic concerns on both
sides. India has been constructing a barrier across its borders with Bangladesh and
Pakistan.
In 1993, SAARC countries signed an agreement to gradually lower tariffs within
the region, in Dhaka. Eleven years later, at the 12th SAARC Summit at Islamabad,
SAARC countries devised the South Asia Free Trade Agreement which created a
framework for the establishment of a free trade area covering 1.6 billion people.
This agreement went into force on January 1, 2008. Under this agreement, SAARC
members will bring their duties down to 20 per cent by 2009.
South Asian Free Trade Area (SAFTA) was envisaged primarily as the first step
towards the transition to a South Asian Free Trade Area (SAFTA) leading
subsequently towards a Customs Union, Common Market and Economic Union. In
1995, the Sixteenth session of the Council of Ministers agreed on the need to strive
for the realization of SAFTA and to this end an Inter-Governmental Expert Group
(IGEG) was set up in 1996 to identify the necessary steps for progressing to a free
trade area. The Tenth SAARC Summit decided to set up a Committee of Experts
(COE) to draft a comprehensive treaty framework for creating a free trade area
within the region, taking into consideration the asymmetries in development within
the region and bearing in mind the need to fix realistic and achievable targets. The
SAFTA Agreement was signed on 6 January 2004 during Twelfth SAARC Summit
held in Islamabad, Pakistan. The Agreement entered into force on 1 January 2006,
20

and the Trade Liberalization Program commenced from 1 July 2006. Under this
agreement, SAARC members will bring their duties down to 20 per cent by 2009
and to reduce customs duties of all traded goods to zero by the year 2016.
Following the Agreement coming into force the SAFTA Ministerial Council (SMC)
has been established comprising the Commerce Ministers of the Member States.
Trade between the majority of SAARC nations is still negligible, and the day-today operations of businesses in South Asia are still hampered by non-tariff barriers,
transport problems and visa complications. It is hardly surprising that many local
businesspeople prefer to engage in projects with South East Asia, China, America
and Europe rather than in investments and trade with their neighbours. Also the
member state are afraid that their domestic markets will be flooded with Indian
goods, resulting in the collapse of their local manufacturing industries.
There is a need to promote and facilitate trade within the SAARC region in order
to lower production costs, transportation costs and eventually benefit the
consumer. Trade in agricultural commodities could help bridge short term supply
gaps.
India, Pakistan, Bangladesh and Nepal are among the five largest contributors to
the UN peacekeeping operations. There is no reason why they cannot contribute to
peace and reconstruction in their own region. Following the American withdrawal,
an idea of a South Asian peacekeeping contingent can also be mulled over but only
after a certain degree of stability has been established and after receiving the
mandate from the UN. Internal security challenges stemming from ethno-linguistic
or religious zeal, prevalence of small arms and narcotic smuggling, ambiguous
power relationships, and weak political structures will discourage SAARC member
states to commit ground troops. However, in the longer term, the idea of a regional
solution cannot be taken forward without having the rest of South Asia on board.
People must be given employment opportunities, schools need to re-opened, focus
must be given to women empowerment, and corruption needs to be controlled
urgently. Instead of major powers wasting time and resources on framing strategic
equations inside the country, they need to see what Afghanistan has to offer to the
region and vice versa, and try and capitalize on that.
With the current economic scenario the context in the subcontinent is changing in a
manner that augurs well for closer regional economic linkages. Taken together,
these trends could provide an opportunity to infuse a much needed sense of
purpose to SAARC. India should take the lead in re-programming SAARC for the
next decade and ahead.
21

Political role of SAARC

The political role of SAARC comes out very clearly when it is observed with
reference to the manner in which relations are structured in South Asia. They are
characterised by asymmetry with the scales tilted heavily in favour of India on one
side and all the others on the other side. A sense that the relations are indeed
unequal, strikes one immediately. The inequalities are inbuilt with respect to the
geographical dimension, demographic magnitude, economic resource base,
production structures and growth potentials, and above all their armed forces and
military capabilities. Relations between India and most of the member countries
have been characterized by mistrust and suspicion. This was especially so during
the mid eighties when the SAARC process had begun. Only India has common
borders with all the member countries while none of them share borders. The
smaller member countries have always looked with suspicion towards India and
considered it to be a hegemonic power. Flowing from this asymmetry is that the
security perceptions of India and the member countries are also divergent. As a
result the policies adopted by India and the other member countries are different
which only increases the mutual suspicion. However, by being members of
SAARC whereby the principle of consensus and unanimity works, there is a sense
of equality, which these countries have with regard to India. In this manner, the
sense of asymmetry is cut down symbolically.
In a scenario where India's relations with its neighbours are strained and there is a
tendency for bilateral relations to affect the overall relations, it is observed that the
regional association has had a very useful role to play. The SAARC forum and
especially the summit meetings provide an opportunity to all the nations to
maintain continuity in their bilateral dialogue. There is a silent acknowledgement
by many; including the political leaders of the member countries, that while the
official bilateral meetings may face rough weather, the member countries have
been regularly meeting at the various SAARC Forums.
It is very difficult to answer if the SAARC informal meetings have in any way
helped in bringing the countries closer to each other and resolving their bilateral
differences. One can safely say that while it might not have brought the member
countries closer it has provided a useful link for the member countries. At times of
22

crisis, it has helped to defuse the short term misunderstandings, which are only
possible when the heads of the countries meet to give confidence to the people.
Similarly, the meetings have helped to restart and give direction to the oftendeadlocked official bilateral dialogue.

Some of the areas where SAARC has led to regional co-operations are

Co-operation on social issues

SAARC has from the beginning exchanged ideas on the various social issues of
concern to the member countries. In the very first summit it was reaffirmed that
challenges of poverty etc could be met only with regional co-operation. Issues
concerning children, maternal and child nutrition, provision of safe drinking water,
adequate shelter, subscribing to goals of universal immunization and primary
educationall have been part of the SAARC social agenda. At the fourth SAARC
Summit in Islamabad, a regional plan, "SAARC: A Basic Needs Perspective", was
adopted. This was to spell out developmental targets of the member countries
regarding basic needs like food, clothing, shelter, education, primary health care
etc. At various times, particular years were designated either to the girl child,
disabled persons, and year of shelter and so on. In fact the Fifth SAARC Summit
decided that the years 1991-2000 would be observed as the 'SAARC Decade of the
Girl Child".
Initially the Technical Committees (TC), which included all the member countries
were the primary mechanism for continuous interaction and co-operation.
Presently there are eleven TC which include agriculture; communications;
education, culture and sports; environment and meteorology; health and population
activities; prevention of drug trafficking and drug abuse; rural development;
science and technology; tourism; transport; and women in development. The
workings of the TC have been examined by eminent persons and recommendations
made for improving their efficacy. These TC are considered as the backbone of the
process of regional co-operation.
Primarily co-operation in these areas has been in the form of exchanging
experiences of the member countries to address various issues, in terms of success
23

stories as well as the problem areas. Following the deliberations, the member
countries would adopt certain goals, which would then be incorporated in their
national plans. In the post cold war period, it is seen that global standards are being
applied regarding these issues. Unless SAARC sets its own standards, the member
countries will have to face the pressure of the developed countries. Eleven TCs
meeting regularly since the past fourteen years surely reflects the manner in which
interaction at the official levels has multiplied many fold, compared to that of the
pre 1985 period.
Need of SAARC was highlighted at the Male Summit in 1997, below targets were
recommended to be achieved in the social field:
Commitment to the target of reaching a replacement level of population which
translates into birth rate of 21 per thousand before the year 2020.
Attainment of universal primary education up to the age of 15 before the year
2010. Elimination of gender disparities in access to education within the target
date of 2010.
Setting aside 6 per cent of GDP for education by the year 2010.
Reduction of infant mortality below 50 per thousand live births by the year
2000. Attainment of 100 per cent immunization by the year 2000 in targets set
by the UNICEF programmes.
Empowerment of women socially, economically and politically.
Holding of regular biennial Ministerial meetings on Women's Development.
Each member-State to set its own time frame for poverty eradication.
Effective utilization of SAARC three tier mechanism on poverty alleviation to
facilitate sharing of experiences and formulation and implementation of
regional policies
Regular meetings at political and technical levels on the environment. Urgent
follow up on the SAARC Plan of Action on the environment.
These targets clearly bring out that to a great extent, as far as the social field is
concerned, implementation of decisions arrived at, requires beginning with
national commitments. A failure to do so cannot be blamed on either the bilateral
24

or regional political environment. In this sense there is a social agenda which is

permanent in nature for SAARC.
This permanency is further reinforced by the fact that, some of the problems like
those dealing with environment (floods, soil erosion etc), drug trafficking, and
trafficking in women and children, illegal movement of peopleare not national
problems but regional, requiring regional solutions. It is these problems which give
rise to an exclusive SAARC agenda which has to be addressed despite all the
prevailing potential political problems.
India can use the summit as leverage to put pressures on its neighbours, such as
Pakistan and Bangladesh, to dismantle the infrastructure for terrorism, including
actions to be taken against non-state actors harbouring extremist sentiments. Nepal
can push for an effective regional mechanism to cope with climate change.
Bangladesh and Maldives are likely to support Nepals effort to set up a regional
body, as both the countries will face the most drastic effects of climate change.

Co-operation on Economic issues

SAARC provides the forum whereby the member countries can discuss cooperation on various economic issues. It took ten years before SAARC could
actually take off with the operationalization of SAPTA in 1995. Since then three
rounds of tariff concessions have been exchanged. A common complaint of course
is the limited coverage of goods under SAPTA. Of late the smaller member
countries are convinced that tariff preferences for trade in itself will not bring
prosperity unless it is accompanied by investments in their countries to improve
their narrow industrial base.
Presently, it is in this regard that discussions on measures for encouraging intra
SAARC investment and joint ventures are also being focused upon and proposals
for a Regional Investment Treaty and a SAARC Arbitration Council have also been
initiated. Similarly is the case with Double Taxation Avoidance. All these are
expected to accelerate the process of economic cooperation in the region. It should
be emphasized that it is the permanent SAARC Forum which allows all these
deliberations to take place in a continuous manner. That major success has eluded
the forum does not in any way diminish the utility of the forum. It indicates the
need for greater exchange of views so that fears and apprehensions can be
addressed and overcome.
25

When SAARC was formed, it did not envisage that sub-regional co-operation will
be adopted too. Initially there was a lot of reservation among the SAARC countries
not included in the growth quadrangle proposed to be formed between Bhutan,
Bangladesh, Nepal and the north eastern parts of India. The countries concerned
stressed that sub-regional co-operation would help in evolving solutions to the
development needs of that particular area. At the Ninth SAARC Summit it was
agreed that specific projects for sub regional co-operation would be encouraged
under the provision of Article 7 and Article 10 of the Charter. The BangladeshBhutan-India-Nepal Growth Quadrangle (BBIN- GQ) is to follow a project led
approach to co-operation in the core economic areas of Multimodal Transportation
and Communication, Energy, Trade and Investment Facilitation and Promotion,
Tourism, Optimal Utilisation of Natural Resource Endowments and Environment.
These projects are to be supportive of and complementary to the national plans of
the four concerned countries. These projects will make best use of neighbourhood
synergies and would be such that they can most productively be dealt with on a sub
regional basis. Nepal will co-ordinate the overall sub-regional co-operation efforts.
Although trucks and containers still have to be fully unloaded and reloaded at
borders, causing considerable expense and even financial losses due to the time
required, in future cross-border trade could be speeded up significantly
It was the experience of regional economic co-operation under SAARC in the form
of SAPTA, which later led to suggestions for sub regional co-operation. The
permanent institutional structure of SAARC enables deliberations to take place on
developing other forms of regional economic co-operation. In this sense, despite
the low measure of success of the preferential tariff arrangement in SAARC, the
associations' economic relevance is not diminished.
The representation of SAARC as major regional block is increasing. Including
India, other countries in SAARC are wooed to trade with China which is
geographically more proximate. China has sought to become a member of
SAARC, besides four other countries Mauritius, Iran, Australia and Myanmar
wants to become from an observer nation to a permanent one.
Some commentators from the smaller SAARC nations see Chinas membership as
a possible way of balancing out Indias strength within SAARC and also view
Chinas massive growth as a possible way of giving impetus to the economic
integration process. What is more, many people feel the sheer size of such an
alliance would raise its credibility in the eyes of the world.
26

Co-operation in International Forums

The leaders have repeatedly stressed the need to develop common South Asian
perspective on the issues to be discussed by the important international
Conferences. In this direction, they noted with satisfaction that collective positions
of the SAARC countries were formulated which were presented at the World
Conference on Natural Disaster Reduction and the World Summit for Social
Development. At the Tenth SAARC Summit the leaders expressed the opinion that
in the series of meetings to be organised by the WTO regarding various issues, the
member states should endeavour to co-ordinate their decisions. In this context they
welcomed the declaration issued by the SAARC Commerce Ministers on the eve
of the Second WTO Ministerial Meeting in Geneva setting out a SAARC approach
on these issues. Such interactions are only sure to increase in the near future.
With the dawn of the twenty-first century, South Asian region has undergone a
radical transformation. It has witnessed a strong democratic sweep. Most of the
South Asian economies have registered impressive growth trajectories. Some of its
countries have also emerged as hubs for global terrorism. The international
community has become far more involved in South Asian affairs due to the
nuclearisation of the region.
SAARC cannot but keep pace with the changing regional dynamics. It has moved
ahead on its economic agenda and expanded its reach not only by adding new
members (Afghanistan ) but also by opening itself to the participation of many
other countries, including China , Iran and the US, as observers.
Below is the extract of SAARC Statistic team on the contribution of SAARC
countries to world economy

27

RELEVANCE OF SAARC
With the rise of China and other Middle Powers such as Brazil, Australia, India,
Turkey and Indonesia, the world of politics is slowly moving from the uni-polar
hegemonic United States world to a multi-polar world. In that context, the regional
organisations able to understand the sensitivity of their member countries assume
political significance.
Even well-informed political observers have to admit that hardly anyone would
cite SAARC, the, as a role model for regional cooperation when examining
different forms of political or economic regional integration. Such a discussion
would first of all focus on the European Union, ASEAN in South East Asia and
NAFTA in the Americas. SAARC is overshadowed by these organisations and
some observers may have never even heard of it. But although this regional
association is of many years standing, having existed at least as long as NAFTA,
can it be deemed to be equally successful? In the eyes of the world it has enjoyed
comparatively few real successes since it was founded in 1985. Even regional
observers criticise SAARC for having good intentions but achieving few practical
28

results. Since it was established, there have been scores of meetings unlike the
other organisations, held mostly at top government level and a host of
agreements have been signed. But analysts believe there has been a shortage of
concrete successes leading to closer cooperation between the member countries.
However, it is not appropriate to measure SAARCs development solely by the
usual criteria. Any assessment needs to take into account the difficult starting
position, the regional situation and the complicated backdrop to the organisations
formation. Only then can the agreements be viewed not just as an immense
symbolic success for a crisis-ridden region but also as a strong cornerstone for the
challenges to come.
Though the formation of SAARC is a landmark step taken by the leaders of the
region, the main rational behind its establishment is to develop a congenial
environment through summit diplomacy where all nations may interact peacefully
with each other, cultivate sustainable peace and promote mutual economic well
being by harnessing available resources in the region through the peaceful process
of economic integration. Nevertheless, after 29 years of establishment, neither
South Asian nations have been able to push the process of integration into full
swing nor the organization itself has become viable enough to promote peace,
harmony and economic integration or prevent conflicts in the region.
SAARC has evolved slowly but continuously both in terms of institutions and
programmes. However, it is true that most of the programmes and achievements of
SAARC exist on paper. The much talked about SAARC Food Security Reserve
could not be utilized to meet the needs of Bangladesh during its worst natural
disaster in 1991. It is also true that most SAARC activities are confined to the
holding of seminars, workshops, and short training programmes. These activities
may be useful, but they do not address priority areas and lack visibility and
regional focus so essential for evolving a South Asian identity. Most importantly,
SAARC suffers from an acute resource crunch. Unless the organization is
successful in mobilizing funds and technical know-how from outside sources, most
of its projects cannot be implemented and, thus, its relevance will remain limited.
Every time there is a meeting Summit of SAARC, the regional association has had
to prove its relevance and legitimacy. If it is held that SAARC is relevant, the
assumption follows that it is playing a positive and significant role. There are
various ways of interpreting this positive role.
29

Some 200 meetings take place every year among SAARC countries but these
meetings are not matched by results. SAARC over the last 3 decades has achieved
very little and has been relegated as an organisation of little value, both within and
outside the region. The Association of South East Asian Nations (ASEAN), on the
other hand, in a neighbouring region, has achieved significant growth through
regional cooperation between ten developing economies. During a
period where the world is adopting a multilateral regional approach to
development, the SAARC is yet to become effective enough to drive economic
prosperity and play a meaningful role in reducing inter-state tensions in the region.
Although member states, realising the benefits gained from regional cooperation,
have
been meeting regularly at various levels, the SAARC is seen as a failure by many
analysts. During this 29 year period there have been no notable SAARC
achievements, although marginal progress has been made in a few fields. Dr.
Christopher Snedden, of Deakin University, states that, the fact that SAARC has
existed since 1985 is an achievement in itself.
The regional security environment has deteriorated due to the growth of terrorism
in Afghanistan and Pakistan, and the non resolution of inter-state disputes. Growth
in the social and economic sectors has also been dismal. The SAARC accounts for
less than one percent of the world
trade. Intra-regional trade has also been an insignificant four percent of its total
trade. Most of the conventions and summits become photo opportunities for
attendees. In the words of Bishwa Pradhan, former Foreign Secretary of Nepal,
many of the decisions are just in papers in the form of protocols, conventions,
reports and studies.
Some hold that SAARC can be considered to have a positive role only if it fulfills
a certain economic role and leads the association towards greater economic
integration. But such a view would be very narrow, overlooking the dynamics of
interactions among the member countries. Every association has to play a certain
political role, social role and economic role with respect to the specific context in
which it has arisen. Only after assessing these multiple roles can we say whether
the association has been relevant or has not been relevant to the region concerned.
Further, since the ground situation within which various regional associations work
differ from region to region, comparison of SAARC's performance with other
regional associations will have to be done with caution.
30

At another level, success or failure of the regional association can be understood

with regard to the expectations of the member countries. When opinions are
expressed that SAARC has failed, it surely shows that it has not measured up to the
expectations. It is thus necessary to understand the kind of expectations member
countries had when they joined the association to come to an objective conclusion.
Were these expectations justified? Did the association not fulfill their expectations
at all and if it did, to what extent did it do so?

Expectations from SAARC

It was in 1980 that Bangladesh first proposed institutionalization of regional cooperation. SAARC was finally established in 1985 after nearly four years of
preparatory meetings among the seven concerned countries, beginning from 1981.
According to the SAARC charter, the objectives of the association include
promotion of the welfare of the peoples of South Asia, to accelerate economic
growth, promote and strengthen collective self-reliance and contribute to mutual
trust, understanding and appreciation of one another's problems in the region.
However, an analysis of the expectations which each of the countries had from the
association bring out certain important aspects. Firstly, though regional cooperation etc were the stated objectives for forming and joining the association, it
is seen that each of the countries had a specific agendaprimarily political with
regard to the association. This agenda was influenced by their perception of
themselves, their countries' national interests and its place in the region. Thus, the
countries sought to fulfil these national agendas through the regional mechanism.
Secondly, therefore these motivations show that the approach was to a certain
extent negative and regional co-operation was not the primary motive for joining
the association. Every country had a clear cut political agenda to fulfil and a
political role to gain by institutionalizing regional co-operation.
Most of the smaller member countries perceived SAARC as a platform from
where, they could together extract a better deal with India regarding the bilateral
differences which did not seem possible in a one to one dealing. They could
bargain collectively with India with a view to securing concessions on various
31

issues including the economic issues which were affecting them. This has to be
further seen in the background that when the process towards regional co-operation
began, while India had a democratic form of government, most of the South Asian
countries were non democratic. To legitimize their regimes they would resort to
anti India rhetoric. They looked upon India as a threat against whom security was
necessary. Policies were thus evolved that prevented them getting closer to India
and linkages were established with outsiders which in many cases served as the
critical element in consolidation of the political power of the elite and its support
base.

Political Relevance of SAARC

The Indo-Pak relations have been given a boost time and again from the informal
meetings that have been held on the sidelines. Though looking back one can say
that the substantive natures of bilateral relations between these two countries have
still not changed, the significant role of the informal bilateral relations cannot be
overlooked. A few examples will help to give a clearer picture. At the very first
meeting at Dhaka in 1985, Prime Minister Rajiv Gandhi and President Zia met
informally and discussed bilateral issues. This was followed by a bilateral visit to
India by Gen .Zia where the discussions continued.
Prior to the second SAARC summit in Bangalore, India, in November 1986, the air
was tense in the sub-continent regarding some report of Indian troop movements
on the western borders and that it was preparing to attack Pakistan. At the close of
his visit to India, Prime Minister Junejo of Pakistan expressed the view that the
discussions with his Indian counterpart had helped to clear the air between the two
countries and that there was no substance in the reports of unusual troop
movement. Even the media in Pakistan was almost unanimous in expressing that
the summit may have helped in clearing the air and that SAARC in the long run
may be expected to create a better climate of trust and co-operation.
India-Sri Lanka talks at the 1987 SAARC foreign ministers meeting led to their
accord on the Tamil problem.
Another significant summit was the fourth SAARC summit held in Islamabad.
Though not informally, yet Prime Minister Rajiv Gandhi did extend his stay for a
few hours after the conclusion of the summit meetings and the two countries held
official bilateral meetings. The two countries signed three agreements relating to
avoidance of double taxation on mutual trade, promotion of cultural exchanges and
32

agreement on prohibition of attack on nuclear installations. Prime Minister Benazir

Bhutto welcomed the forum of SAARC for having made the visit of Indian Prime
Minister possible and hoped that more such visits would follow.
One of the most significant meetings on the sidelines of the SAARC Summit was
the one between Nawaz Sharif and Gujral at the Ninth Summit in Male in 1997.
Following their meeting, the foreign secretaries of both the countries met in
Islamabad on June 19-23, 1997 and spelt out outstanding issues of concern to be
addressed by both the countries. The composite dialogue continues with breaks
whenever there are differences. Nevertheless, it was the Male Summit which
facilitated the deadlock to be broken.
The Tenth SAARC Summit in Colombo held against the background of the nuclear
tests conducted by both the countries received a great deal of worldwide attention
for events taking place on the sidelines of the summit rather than the main Summit
proceedings itself. It was in the SAARC Forum that the leaders of the two
countries were meeting for the first time after the tests. The opportunity provided
by the SAARC summit however could not be utilised for breaking the bilateral
deadlock due to differing interpretations of the implementation of the composite
dialogue agreed upon by both the countries earlier in June 1997.
Similarly, the other countries also hold informal meetings on the sidelines . The
informal meetings at the highest level on the sidelines have played an important
role with regard to relations between India and Sri Lanka during the peak of the
Tamil ethnic crisis when India was also closely involved in finding solutions. So
was the case regarding India and Bangladesh with regard to finding a way out to
the Ganges water treaty. Presently, there are reports that Nepal and Bhutan have
also met in the sidelines to discuss the issue of refugees.
The assumption that peace can be achieved through SAARC without addressing
the political problems of the region has neither been able to cultivate peace nor to
invigorate the SAARC process successfully. Though since its very inception it has
been regularly able to hold Summit meetings yet there have been interruptions in
between owing mainly to intra-state conflicts between the member countries.

SAARC Provides an Alternative Structure

The above analysis clearly shows that SAARC does provide an alternative if not an
accompanying structure within which relations can be conducted among the
member countries. This alternative structure is very significant for the smaller
33

member countries who get a sense of equality and a distinct identity with regard to
India in issues concerning the region. It is also a very important mechanism for
India to manage and conduct her bilateral relations with the other member
countries.
As spelt out, SAARC does provide continuity to relations among the member
countries especially when bilateral relations are at the nadir. Since the beginning of
the nineties there has been a conscious policy direction by India towards
normalisation of relations with its neighbours, especially the smaller neighbours. In
this context, the importance of the SAARC Forum for India is emerging more
clearly. In this continuum, the Gujral Doctrine too, recognising the importance of
the neighbours (especially the smaller neighbours), is based on the assumption that
the strength and stature of India cannot be divorced from the quality of the
relations which it has with its neighbours.
However, given the tumultuous past, India's intentions are looked upon with
suspicion at times. Therefore a policy by India singularly based on bilateralism, to
build new bridges with her neighbours has certain inbuilt limitations. The SAARC
Forum however, allows India to overcome many of these limitations and provides
opportunities to build positive linkages with her neighbours through regionalism.
To a certain extent it dilutes the anti-India sting which bilateralism carries with it
on certain issues. Further, a regional forum enables India to address these member
countries together and put forward policy proposals. This was specifically so at the
tenth SAARC Summit where India spelt out two specific proposals dealing with
bilateral free trade pacts in case of failure of regional free trade area and secondly,
that India will unilaterally reduce tariffs on some 2000 items. Further, it is seen that
while bilaterally the issue of transit between India and Bangladesh is met with
criticism in the latter country, the same proposal as part of the Asian Highway
Project dilutes the criticism.
Similarly for the smaller member countries too, SAARC as a forum helps to
develop bridges with India, without the government in power being criticised as
seeming pro-India within the country. It therefore means that there is a political
role which SAARC is playing at the national, bilateral and regional, levels for the
member countries, irrespective of the success or failures in areas strictly
considered as part of regional cooperation. This should be reason enough for not
34

going into and questioning the relevance of SAARC every time, though it is not
denied that criticism and suggestions for co-operation on issues concerning
regional co-operation should be made.
SAARC thus provides an alternative structure (in addition to the established
bilateral mechanisms) not only for India, but also for the other member countries in
conducting themselves and when required building positive linkages with each
other. During crisis times too, the smaller member countries look upon it as a
forum to pressurise India. The working of SAARC has further clearly shown that it
has not diluted the national interests of the member countries. Most important is
that the forum allows the smaller member countries to establish and develop closer
relations among themselves which would not have been the case in the absence of
SAARC. Not that it would have been impossible, but just that SAARC facilitates
things.
Given the permanency of certain factors of asymmetry in the South Asian region, it
is observed that SAARC enables it to underplay these asymmetries. In this sense
SAARC has a permanent political relevance to these countries individually,
bilaterally and regionally. The means of defining the success of the regional
association have thus to be widened.
Another positive feature has been the close linkages developed between the nongovernmental organisations (NGO's) of the member countries. On certain issues,
these NGO's are setting the agenda pressurising the political class to respond and
come out with plans of action. For example this is specifically seen with regard to
issues concerning women and children and secondly, the constructive role played
by the SCCI (SAARC Chambers of Commerce and Industry) in developing and
strengthening linkages among the business class of the member countries so that
they could pressurize their respective governments to move towards closer forms
of regional economic integration.

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Barriers to the SAARC moving forward

The SAARC Charter states that the Heads of States/Governments must meet once
a year, however, they have met only 17 times in the past 29 years. Postponement or
failure to conduct summits has been attributed to Indo-Pakistan tensions and other
reasons, some of which are insignificant. However, irregular conduct of summits is
not the only reason for the lacklustre performance of SAARC.

1.

.Member Nations attitude v/s India

In South Asia, India accounts for 72 percent of the total area, 77 percent of the
population and 78 percent of the regional Gross National Product.18 India, given
its size and centrality in the region, shares a land or maritime boundary with all the
SAARC countries, thus making it the pre-eminent power in the region and able to
influence the conduct of other member states. However, the influence of India on
the region has been described as hegemonic and has led to a sense of insecurity
amongst smaller nations India is also a constant factor in most of the inter-state
disputes within the region, some attributable to the colonial past. India has a range
of issues with Bangladesh, Nepal and Sri Lanka including sharing of waters and
borders, illegal migration, trade and transit relations, and perceptions of
inappropriate Indian interference in the internal affairs of others. There are other
inter-state conflicts too which do not involve India, but these are less significant
compared to those involving India. Strained Indo-Pakistan relations is, the most
severe obstacle to regional cooperation within the framework of SAARC. The
Kashmir issue and Pakistans support for cross-border terrorism continue to
underscore the brittle relationship between India and Pakistan which seriously
impedes the SAARC growth. Pakistan has consistent involvement in undermining
Indias leadership role in the region. In one of the summit, Maldivian President
Mohamed Nasheed, in a direct reference, blamed India and Pakistan for making
the SAARC non-functional. Nepal, Bangladesh and Pakistans initiative in
campaigning for Chinas entry into the SAARC, as an observer, is viewed by India
as an attempt to marginalize its influence in the region. The indifferent attitude of
the smaller nations towards India, besides dampening the spirit of SAARC, vitiates
36

the environment for India and makes it reluctant to take on leadership within the
region.

2.

Self-centeredness
Self Centric view of member nation is another barrier which is hampering SAARC.
Unlike the spirit of ASEAN which has been famously encapsulated, in the,
ASEAN way, the SAARC member states hold differing views on most of the
important issues, lack strong and common political will and have very little
consensus about basic norms, rules and agreements.The SAARC member states are
self-centred in their approach and have done very little to promote a regional
outlook. Most of the member countries, including India, engage more with Western
countries or inter-regional organization than they do within the region. The
speeches made by state leaders during the last Summit highlighted their
achievements as individual nations and included very little in describing their
participation in regional events. Though they did underscore the importance of
regional cooperation, they did not address any specific initiative to move the
SAARC forward. Sri Lankan President Mahinda Rajapaksa, during one of the
Summit said, we often tend to provide priority to our engagements with extraregional actors, without devoting sufficient attention to further developing and
strengthening links within our own regional organization. It has also been observed
that all member states prefer bilateral communication rather than adopting a
SAARC-led regional approach, even in those issues for which regional
provisions/declarations exist.

3.

Western Outlook
Though the SAARC has granted observer status to the European Union and eight
other
countries, the West still looks at South Asia as two entities: Western South Asia,
comprising Afghanistan, Pakistan and India and Eastern South Asia which
includes the other countries.The West attaches significant importance to the former
due to the US-led involvement in the Global War on Terrorism (GWOT) and its
relationship with India, considered a rising power. On the other hand Eastern
South Asia, is considered as a less significant region for the West, as it offers very
little of economic or strategic interest. After the defeat of the LTTE in Sri Lanka
37

and the process of Maoist soldiers being re-integrated into Nepalese society, there
are no major political issues of concern to the West. The SAARC, therefore, does
not enjoy the same level of Western support as ASEAN and other regional
organisations.

Can the SAARC be revitalized?

1. Environment Conducive to Cooperation
Being the biggest and most influential member nation, India must appreciate that
by its not taking the lead, the SAARC will never achieve its full potential. India
also needs to recognise the benefits of maintaining good relations with its
neighbours and resolving contentious issues with them. The Indian government
needs to display magnanimity, without compromising its national interests, to settle
all issues with its neighbours on terms that smaller nations will find attractive.
India needs to take positive steps to change the hegemonic attitude it is seen as
having in the region. In order to remove deep rooted mistrust, smaller nations will
also need to play their part in the resolution of all contentious issues, thereby
bringing stability in the region. Pakistan and India, in particular, should seek to
resolve their differences, if the SAARC is to be effective. Smaller nations must be
accommodative of Indias regional and global aspirations,and they must view India
as an opportunity for economic growth, and development of their human resource
capabilities, in particular in the field of information technology. Improving
bilateral relations with China may be acceptable to India; however any attempt to
balance or reduce Indian influence in the region will not be welcomed by India. An
environment, free of mutual mistrust and suspicion; conducive to cooperation, and
with India as leading member, would help the SAARC to grow.

2. Sub-regional Approach
Working towards sub-regional cooperation on common themes will help develop
harmonious relations among member states, thus helping the SAARC to realise its
true potential.Steps to physically integrate the region will help increase trade and
improve economic relations, which besides increasing regional inter-dependence
and bringing prosperity to the sub-region, underscores the importance of stability
and resolution of inter-state disputes. Efforts to create social linkages at subregional level in the fields of education, poverty alleviation, health, science and
38

technology and tourism will bring direct benefits to the populace, thus spreading
the SAARC
awareness and strengthening the organisation. Eric Gonsalves, a former Secretary
in the Government of India, has said, that in South Asia almost no effort is
devoted to advertising the genuine benefits that would accrue to every citizen from
regionalisation, this needs to be remediedThe importance of communicating the
potential benefits of SAARC, within and outside the region, cannot be overstated.
Indian prime minister, Narendra Modi in his independence day speech had urged
all SAARC countries to fight together against poverty, he said Our common
forefathers fought for freedom together. If without weapons or resources we could
defeat a powerful sultanate (British rule), cant we defeat poverty together?

3. International Image
By improving inter-state relations and adopting a multilateral approach, the
SAARC can project itself as a united entity, thus improving its international image.
Active engagement with the observer countries will attract foreign investment and
other support which will boost development within the region. India, having
established itself in the world, should take the lead in showcasing the SAARC
achievements while engaging with the West. Initiatives such as laying a network of
gas pipelines in the region can help project the SAARC as the Asian Gas Grid,
thus promoting itself as a useful organisation. Greater interaction with ASEAN
and the adoption of relevant lessons from its success will go a long way in helping
SAARCs cause and put it on the path of progress. Indian Prime Minister Narendra
Modi has taken key initiative in this regard by inviting heads of all SAARC nations
in his swearing in ceremony and then directing ISRO in developing a SAARC
satellite.

CONCLUSION
Its clear that SAARCthe regional association has multiple roles to play. It should
not be assessed just with regard to what it has or has not done with regard to
regional co-operation per se, but its importance lies for the countries individually
in enhancing their national prestige, managing their bilateral relations and having a
39

regional identity. This comes out clearly when the expectations of the member
countries at the time of joining the association are examined which were not
strictly limited to the desire of regional co-operation. Its importance comes forth
particularly with reference to a region which is characterized by asymmetry.
SAARC helps in these identities which have their own symbolic importance as
well as practical utility. These symbolic aspects help to reduce these asymmetries
in terms of identities. In this sense there is a permanent political contribution of
SAARC and herein lies its relevance.
The success or failure of the regional association cannot be measured in a vacuum.
It should be done so with regard to the expectations of the member countries
their national, bilateral and regional agendas. Secondly, it has to be done with
regard to the ground situation prevailing in the region whereby SAARC since its
inception has provided an alternative structure to conduct relations among the
member states. While trying to write the report card of the regional association
SAARC which was established around three decades back one should be very clear
that the answer cannot be either categorical 'pass' or 'fail'. That would be a very
narrow way of looking at things. For that matter any regional association in the
world has a mixed bag of resultscertain areas in which they have achieved
success, in others failed to take off and in still other issues where new mechanisms
of co-operation are being developed.
Moreover, SAARC (and for that matter any regional association) leads two parallel
lives which however are not completely disconnected. First is one which is deeply
linked to the individual aspirations of the member countries and how SAARC
gives them identity and the means of expression. The second is that where there is
a regional agenda and SAARC stands above all the countries put together. The
above analysis has brought out the permanence of the first and the growing
importance of the second.
One thing is true of all this: SAARC should not lose its direction by getting
involved in too many areas at once. Political signals and the political will for clear
progress towards economic integration are what will tip the scales in favour of
successful regional cooperation in South Asia.
Activities in hundreds of other areas cannot compensate for failure in the question
of economic liberalisation.
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In some respects SAARCs prospects have never looked better. For the first time in
its history, the governments of its member states are being run on democratic
principles.
All the SAARC countries are showing positive economic developments. And
international interest in South Asia has never been stronger: the potential for
foreign investors is immense, and South Asian integration is also coming to the
forefront on a political level. The regional players should focus on these
developments and not trip themselves up by making independent bilateral
agreements. But there will not be a closer integration without achieving more
stability in the region, beginning with Afghanistan and progressing to the domestic
conflicts which plague almost all of South Asias young democracies. India should
take a particular interest in this if the regional heavyweight wants to progress
further on the path to growth it needs to make sure there is stability and peace in its
own back yard. Its smaller neighbours also offer interesting potential in the area of
energy production and resources. For India, a country which currently has
negligible levels of trade with other South Asian nations, the region offers
immense potential for growth. It would not be a case of reinventing the wheel if
India were to invest heavily in its neighbours in order to develop strong consumer
markets.
With the emergence of a multi-polar world in which India is poised to play a major
role in international institutions such as the United Nations, it will be interesting to
see how India strengthens regional institutions such as the SAARC. With a new
government in place, it has already started taking initiative by planning to launch a
SAARC satellite. On the other hand, SAARC will also test itself against other
regional institutions such as the BIMSTEC, ASEAN, APEC etc.

BIBLIOGRAPHY
1. www.saarc-sec.org
2. www.saarcstat.org
3.

SAARC - Center for Nonproliferation Studies

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4.

SAARC Origin, Growth, Potential and Achievement - Muhammad Jamshed

Iqbal

5. SAARC An Emerging Trade Bloc - EXIM

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