< Previous | Contents | Next >
7. South Asian Association for Regional Cooperation (SAARC)
Map2.9: SAARC countries♤ South Asian Association for Regional Cooperation (SAARC) was founded in Dhaka on 8 December 1985. Its secretariat is based in Kathmandu, Nepal.the South Asian Free Trade Area in 2006.7.2. The Organisation♤ The Charter Bodies are the main mechanisms of SAARC. These include the Summit, Council of Ministers, Standing Committee, Programming Committee, Technical Committees and Action Committees.7.3. Evolution♤ Dhaka pursued the idea of SAARC initially with a view to containing the “hegemony” of India in South Asia, a view fuelled by the structural asymmetry between India and its smaller South Asian neighbors.♤ Pakistan also was not very enthusiastic about SAARC since its inception as it knew that♤ Small countries Apprehensive on Trade: The smaller countries on the other hand were not7.3.2. The SAARC Agenda7.3.3. Principles of the SAARC Charter7.3.4. SAARC Regional CentresSince 1989, a number of Regional Centres with specific mandates have been established to strengthen and promote regional cooperation. The Regional Centres implement programme activities and are expected to evolve into Centres of excellence in their respective areas.♤ SAARC Energy Centre (SEC), IslamabadSAARC Cultural Centre (SCC), Colombo, Sri Lanka♤ SAARC Tuberculosis and HIV/AIDS Centre (STAC), Kathmandu♤ SAARC Disaster Management Centre (SDMC), Delhi, India7.4. Trade and Commerce: The SAARC Preferential Trade Arrangement (SAPTA)7.4.1. Lack of Progress in SAPTASAPTA Suffered from the Following Drawbacks7.5. South Asian Free Trade Agreement (SAFTA)♤ SAFTA was operationalised from 2006 onwards & has the following features:7.5.2. SAFTA: Key ChallengesHowever, SAFTA has continued to face certain challenges:South Asian economies are more competitive in nature.7.5.3. Way ForwardIn a context when less than 10% of the region's internal trade takes place under SAARC Free Trade Area it is imperative to look for ways to make SAFTA work. In recent times Track 2 initiatives, in the context of SAARC, like the South Asian Forum have put forward following recommendations-♤ Ease of Movement: Under EU, European countries have established a common market for goods, a common currency, also it provides visa free travel for countries which are part of Schengen Agreement.7.6.1. Sluggish Progress: Views from Within♤ For the first time member countries at the Thimpu Summit in Bhutan, marking the 25th♤ In 2014 PM Narendra Modi in his speech at the 18th SAARC Summit in Kathmandu observed that “nowhere in the world are collective efforts more urgent than in South Asia; and, nowhere else is it so modest.”7.7. Causes for the Limited Progress of SAARCSome of the major reasons for the limited progress on the part of SAARC to take off in any concrete manner has been due to-4. High level of trust deficit between South Asian nations- as a result of pending border conflicts, water sharing conflicts etc between the members of the region.o India did put forward a proposal for developing a SAARC Market for Electricity trading♤ Instead of taking up new areas in its summit declarations, SAARC should focus on trade, connectivity and security and the need to develop a regional identity.o Need is to finalise a Regional Railways Agreement and complete the preparatory work on an Indian Ocean Cargo and Passenger Ferry Service. Timely completion of demonstration run of a Bangladesh- India-Nepal container train as envisaged in the Addu declaration needs to be taken up.♤ upgradation of the SAARC Supra Reference Laboratory at Kathmandu,7.9. Recent Developments within SAARCo agreement is meant to be an overarching cooperative scheme that aims to address broad issues such as the enabling of cross border trade in electricity, the development of a common regulatory mechanism and the waiving of customs fees♤ Two other agreements, the SAARC Motor Vehicles Agreement for the Regulation of Passenger and Cargo Vehicular Traffic and the SAARC Regional Agreement on Railways could to be signed at the 18th Summit due to last minute objections to them by Pakistan.7.10. Deadlock at SAARC: Options for Regional Cooperation in South Asia♤ Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC):India, Nepal and Sri Lanka) together with two south east Asian countries (Burma and Thailand). It had remined dormant for long, however in recent times India has taken initiatve to revive cooperation at this forum. In this context India had invited the BIMSTEC leaders to join the BRICS leaders at the Goa summit in 2016.7.11. India’s Neighbourhood Policy: Neighbourhood First♤ When PM Narendra Modi took oath as the 14th Indian Prime Minister in May 2014, he made a significant diplomatic outreach to India’s neighbours by inviting their heads of government.periphery.o providing them with support as needed
< Previous | Contents | Next >