SOUTH ASIAN ASSOCIATION FOR REGIONAL

COOPERATION (SAARC)

IN PARTIAL FULFILMENT OF THE REQUIREMENT UNDER SEMESTER BASED

CREDIT & GRADING SYSTEM FOR POST GRADUATE SEMESTER I

Program under faculty of commerce

MASTER OF COMMERCE (EVENING)

SYDENHAM COLLEGE OF COMMERCE & ECONOMICS

SUBMITTED BY:
VIVEK KUMAR TIWARI
ROLL NO: 51
PROJECT GUIDE:

Dr. Anil R. Chougule

(M.A, MPhil, NET, Ph.D.)

Assistant professor

SYDENHAM COLLEGE OF COMMERCE &

ECONOMICS
2014-2015

DECLARATION
1

I Mr. VIVEK KUMAR TIWARI the student of M.Com- I (Evening)

1ST.Semester (2014-2015), hereby declare that I have completed the project on
SOUTH ASIAN ASSOCIATION FOR REGIONAL COOPERATION
(SAARC). The information submitted is true and original to the best of my
knowledge.

Signature of student:
_________________
VIVEK KUMAR TIWARI
Roll No: 51

CERTIFICATE

This is to certify that Mr. VIVEK KUMAR TIWARI of M.Com -I (Evening)

Semester-I (2014-2015) has successfully completed the Project on SOUTH
ASIAN ASSOCIATION FOR REGIONAL COOPERATION (SAARC)
under the guidance of Dr. Anil R. Chougule.
1

Project Guide: ___________________

Internal Examiner: ________________

External Examiner: ________________

DATE: ____________________
PLACE: ___________________

ACKNOWLEDGEMENT

I would firstly like to thank the UNIVERSITY OF MUMBAI for giving us

the liberty of choosing such topic which will be benefited to us in future. I
would like to thanks the Principal of Sydenham College Dr. Annasaheb
Khemnar for giving me the opportunity to study in this esteemed college and
doing the course of Accountancy. I would like to express my sincere gratitude
and thanks to Dr. Anil R. Chugule who is my project guide, as he has been the
guiding light for this project and has also provided me with the best of my
knowledge, advice and encouragement which helped me in successful
completion of my project.
My colleagues and specially my parents who have also supported and
encouraged me, the success of this project to the large extent is also dedicated to
them.
I would also like to thank all those who have helped me and
whom I have forgotten to mention in this space

SIGNATURE OF STUDENT: ______________

MODULE-1
1. INTRODUCTION
The South Asian Association for Regional Cooperation (SAARC) comprises Bangladesh,
Bhutan, India, the Maldives, Nepal, Pakistan and Sri Lanka. SAARC is a manifestation of the
determination of the peoples of South Asia to work together towards finding solutions to their
common problems in a spirit of friendship, trust and understanding and to create an order
based on mutual respect, equity and shared benefits. The main goal of the Association is to
accelerate the process of economic and social development in member states, through joint
action in the agreed areas of cooperation.
The South
Asian
Association
for
Regional
Cooperation (SAARC)
is
an economic and geopolitical organization of eight countriesthat are primarily located
in South Asia. 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 Dhakaon 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 acceleratesocio-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 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 self-reliance.
The 11 stated areas of cooperation are agriculture; education, culture, and sports; health,
population, and child welfare; the environment and meteorology; rural development
(including the SAARC Youth Volunteers Program); tourism; transport; science and
technology; communications It is headquartered in Kathmandu, Nepal.
The world today is at a turning point. The changes that we are undergoing are global in scope,
revolutionary, fundamental and structural in content. As we have entered the 21st century a
5

sense of optimism prevails for attaining peace and prosperity through effective role-play of
regional as well as global organizations.
Many view Asia as having a variety of characteristics in common with Europe of the
nineteenth century: underdeveloped international institutions, mixed domestic orders, rising
nationalism, high but differential growth rates, and bitter, emotional rivalries between
insecure neighbours.

2.

HISTORY

The idea of co-operation in South Asia was discussed in at least 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.
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. 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 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. Responding to the President Zia Rehman and King Birendra's convention, the
officials of the foreign ministries of the seven countries met for the first time in Colombo in
April 1981. 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 renationalized 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.
6

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 Programme of Action (IPA) initially in five agreed areas of cooperation namely,
Agriculture; Rural Development; Telecommunications; Meteorology; and Health and
Population Activities.

MEMBERS OF SAARC
Its seven founding members are Bangladesh, Bhutan, India, the Maldives, Nepal, Pakistan
and Sri Lanka. Afghanistan joined later on 3rd April, 2007

1) Bangladesh
Bangladesh emerged as an independent country on 16 December 1971. Its official name is the
Peoples Republic of Bangladesh. Dhaka is the capital of the Republic and Bangla is the
state language. The Independence and National Day of Bangladesh is 26 March
Bangladesh has primarily an agrarian economy. Agriculture is the single largest sector in the
economy producing about 30% of the countrys GDP and employing around 60% of the total
labour force. The country has a considerable number of large, medium and small-sized
industries in both the public and private sectors based on both indigenous and imported raw
materials. Among them are jute, cotton, textiles, fertilizer, engineering, shipbuilding, steel,
oil-refinery, paper, newsprint, sugar, chemicals, cement and leather.

2) Bhutan
The Bhutanese call their country Druk-yul, the land of the Drukpas (the people) and of the
Druk (Thunder Dragon as in the national flag of Bhutan). The ancient history of the kingdom
remains shrouded in mystery. Since the 8th century A.D., however, it is clear that Buddhism
has played a large part in shaping the course of Bhutans history. Although Bhutan was
unified under a central authority in the 17th century, evidence strongly suggests that it had
existed as an independent entity from very early times.
With over 80% of the people dependent on subsistence farming, the Bhutanese economy is
predominantly rural. The share of the agriculture sector in the gross domestic product has
dropped to less than 50% with the increase in the contribution of hydroelectric power
generation and sale which now accounts for over 30 percent. The country has the potential to
generate 30,000 MW of power from its rivers. Besides electricity, Bhutan exports calcium
carbide, wood products and cement.

3) India

The roots of Indian civilization stretch back in time to pre-recorded history. The earliest
human activity in the Indian subcontinent can be traced back to the Early, Middle and Late
Stone Ages. India gained independence from the British on 15 August 1947. The freedom
struggle was led by Mohandas Karamchand Gandhi, also known as The Mahatma, who is
revered as the Father of the Nation.
India has one of the worlds most diverse populations, with most of the major races
represented. Today, India has over one billion people. There are fifteen languages recognized
by the Indian Constitution and these are spoken in 1600 dialects. Hindi, the fourth most
widely spoken language in the world, is the language of 30% of the population and the
official language of India.
India ranks among the top ten industrial nations of the world and has an increasingly
powerful middle class. The Indian economy is potentially very strong with its large industrial
output, technological knowledge and extensive reservoir of skilled manpower. Major exports
include cotton goods, iron, raw jute and jute products, coffee, electrical goods, leather,
handicrafts, diamonds, chemicals and software. The major imports are machinery, petroleum,
chemicals, cereals, copper, and zinc.
The majority of Indians (64%) earn their livelihood from the land with agriculture accounting
for about 35 % of national income.

4) Maldives
The civilizations of Maldives as far as can be estimated, dates back more than 2000 years.
Archeological findings from many ancient sites in Maldives show ruins of old Buddhist
structures, some dating back to 3rd and 4th centuries. The evidence shows that at the time of
conversion to Islam in 1153 A.D. the population of Maldives was mainly Buddhist.
The Maldives political system is a unique blend of its history, traditions, Islamic faith and
modern democratic principles. It has evolved over a period of many years, the first written
constitution having been proclaimed in 1932, though unwritten constitutional principles had
been in existence long before then. A republican form of government in 1968 replaced the
constitutional monarchy, with an Executive President as the Head of State. A new
Constitution, that is more comprehensive and in tune with the countrys democratic principles
was adopted by the country on 1 January 1998.

5) Nepal
The documented history of Nepal begins with the Changu Narayan temple inscription of
King Manadeva I (464 A.D.) followed by Malla rulers among other important ones. Before
Nepals emergence as a unified nation in the latter half of the eighteenth century, the
designation of Nepal was applied only to the Kathmandu Valley. Nepal had been segmented
into more than 52 small principalities. Prithvi Narayan Shah, the Great King of Gorkha was
the maker of modern Nepal who united the country by 1769 by conquering Kathmandu
Valley and making it the Capital.
The mainstay of the Nepalese economy is agriculture, which accounts for 41% of the GDP
with more than 80% of the people dependent on it. The main crops grown are paddy, maize
and wheat. Manufacturing, trade and tourism follow farming as the main economic activities
8

of the country. Hand knitted woolen carpets and readymade garments are flourishing
industries in the country whose total share in the exports figures is almost 32 percent.
Petroleum products, chemicals and drugs, food and live animals, vehicles, machinery and
equipment are the major imports of Nepal.

6) Pakistan
The Islamic Republic of Pakistan appeared on the world map on 14 August 1947 under the
leadership of Muhammad Ali Jinnah, Quaid-e-Azam (the Great Leader), who is revered as
the Father of the Nation. Pakistan is divided into four provinces: Sindh, Baluchistan, Punjab
and the North-West Frontier Province. Islamabad is the capital of the country.
Agriculture and related activities engage 46.1 percent of the workforce and provide 25
percent of GDP. The main exports include cotton textiles, cotton yarn and thread, clothing,
raw cotton, rice, carpets and rugs, leather, fish and petroleum products. The main imports
include machinery, electrical equipment, petroleum products, transportation equipment, metal
and metal products, fertilizer and foodstuffs.

7) Sri Lanka
Lanka means "resplendent" (from the Pali "alankara"). Stone-age implements found on the
island date back at least ten millennia, while evidence is available that the domestication of
plants may have taken place around 15,000 B.C. Given Sri Lankas central location on the
trade routes of the ancient world and the attraction then of her "products", pearls, timber,
gems and ivory, and later spices, the island had become a center of East-West commerce well
before the Christian era. The direct influence of European maritime powers was felt
beginning from the 16th century with the arrival of the Portugues, Dutch and later British. Sri
Lanka gained independence from the British on 4 February 1948
The population of Sri Lanka (1998 estimate) is 18.77 million. The country is a multi-ethnic
nation. The Sinhalese, of Indo-Aryan origin, comprise 74 percent of the population; the Sri
Lankan Tamils, of Dravidian origin, who migrated to the island thereafter: 12.6 percent; the
Indian Tamils, descendants of migrant workers from South India recruited in the last century
by the British: 5.5 percent; the Moors, descendants from Arab traders who arrived in the
island from about the 12th century AD: 7.1 percent; and others, who include Burghers,
descendants of the Dutch and Portuguese: 0.8 percent. Sinhalese and Tamil are official
languages while English is the national language. Four major religions are freely practiced in
Sri Lanka. Buddhists account for 69.3 percent of the population, Hindus for 15.5 percent,
Christians for 7.6 percent and Muslims for 7.5 percent.

8) Afghanistan
Afghanistan officially the Islamic Republic of Afghanistan, is a landlocked country located in
Central Asia and South Asia. It has a population of around 31 million people, making it the
42nd most populous country in the world. It is bordered by Pakistan in the south and east;
Iran in the west; Turkmenistan, Uzbekistan, and Tajikistan in the north; and China in the far
northeast. Its territory covers 652,000 km2 (252,000 sq mi), making it the 41st largest country
in the world.

Human habitation in Afghanistan dates back to the Middle Paleolithic Era, and the country's
strategic location along the Silk Road connected it to the cultures of the Middle East, Central
Asia, and South Asia.Through the ages the land has been home to various peoples and
witnessed many military campaigns, notably by Alexander the Great, Arab Muslims, Genghis
Khan, and in the modern-era by Western powers.

3. EVOLUTION
The idea of regional cooperation in South Asia was first mooted in November 1980. After
consultations, the Foreign Secretaries of the seven countries met for the first time in
Colombo, in April 1981. This was followed, a few months later, by the meeting of the
Committee of the Whole, which identified five broad areas for regional cooperation. The
Foreign Ministers, at their first meeting in New Delhi, in August 1983, formally launched the
Integrated Programme of Action (IPA) through the adoption of the Declaration on South
Asian Regional Cooperation (SARC).
At the First Summit held in Dhaka on 7-8 December 1985, the Charter establishing the South
Asian Association for Regional Cooperation (SAARC) was adopted.
The evolution passed through four phases that include: Conception (1977-80) The Meeting of
Foreign Secretaries (1981-83), The Meeting of Foreign Ministers (1983-85), and The
Summits (1985-2004).
The first concrete proposal for establishing a framework for regional cooperation in South
Asia was made by the late president of Bangladesh, Ziaur Rahman, on May 2, 1980. Prior to
this, the idea of regional cooperation in South Asia was discussed in at least three
conferences: the Asian Relations Conference in New Delhi in April 1947, the Baguio
Conference in the Philippines in May 1950, and the Colombo Powers Conference in April
1954.8 Since 1977, the Bangladesh president seemed to have been working on the idea of an
ASEAN-like organization in South Asia.9 During his visit to India in December 1977, Ziaur
Rahman discussed the issue of regional cooperation with the new Indian Prime Minister,
Morarji Desai. In the inaugural speech to the Colombo Plan Consultative Committee which
met in Kathmandu in December 1977, King Birendra of Nepal gave a call for close regional
cooperation among South Asian countries in sharing river waters. President Ziaur Rahman
welcomed the Kings call during the formers visit to Bangladesh in January 1978. President
Ziaur Rahman had also informally discussed the idea of regional cooperation with the leaders
of South Asian countries during the Commonwealth Summit in Lusaka (1979) and the NonAligned Summit in Havana (1979). However, the Bangladesh president seems to have given a
concrete shape to the proposal after his visit to Sri Lanka and discussion with the Sri Lankan
president, J.R. Jayawardene, in November 1979. Several factors seem to have influenced
President Ziaur Rahmans thinking about establishing a regional organization in South Asia
during 1975-1979:

10

(1) change in the political leadership in South Asian countries and demonstration of
accommodative diplomacy by the new leaders; (2) Ziaur Rahmans need for Indian support to
legitimize his coup dtat regime; (3) an acute balance of payment crisis of almost all South
Asian countries which was further aggravated by the second oil crisis in 1979; (4) failure of
the North-South dialogues, and increasing protectionism by the developed countries;10
publication of an extremely useful background report by the Committee on Studies for
Cooperation in Development in South Asia (CSCD), identifying many feasible areas of
cooperation;11 assurance of economic assistance for multilateral cooperative projects on
sharing water resources of the Ganga and Brahmaputra by United States President Jimmy
Carter and British Prime Minister James Callaghan during their visit to India, Pakistan and
Bangladesh in January 1978; and the Soviet military intervention in Afghanistan in late
December 1979 and the resulting rapid deterioration of South Asian security situation. During
this critical period, President Ziaur Rahmans initiative for establishing a regional
organization which would give the leaders of South Asian countries an opportunity to
improve their understanding of one anothers problems and to deal with conflicts before they
turned into crisis, became much more appealing.
While the Bangladesh proposal was promptly endorsed by Nepal, Sri Lanka, the Maldives
and Bhutan, India and Pakistan were sceptical initially. Indias main concern was the
proposals reference to the security matters in South Asia. Indian policy-makers also feared
that Ziaur Rahmans proposal for a regional organization might provide an opportunity for
new smaller neighbours to regionalize 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 new Bangladesh draft paper, sensitive to Indias and
Pakistans concerns, dropped all references to security matters and suggested only nonpolitical and non-controversial areas for cooperation. Between 1980 and 1983, four meetings
at the foreign secretary level (April 21-23, 1981, Colombo; November 2-4, 1981,
Kathmandu; August 7-8, 1982, Islamabad; March 28-30, 1983, Dhaka) took place to establish
the principles of organization and identify areas for cooperation. After three years of
preparatory discussions at the official level, the focus of discussion shifted to the political
level in 1983. The first South Asian foreign ministers conference was held in New Delhi
from August 1-3, 1983, where the Integrated Programme of Action (IPA) on mutually agreed
areas of cooperation (i.e., agriculture, rural development, telecommunications, meteorology,
health and population control, transport, sports, arts and culture, postal services and scientific
and technical cooperation) was launched. The foreign ministers at this conference also
adopted a Declaration on Regional Cooperation, formally beginning an organization known
as South Asian Regional Cooperation (SARC). Following the New Delhi meeting, three more
meetings of the foreign ministers were held at Male (July 10-11, 1984), Thimpu (May 13-14,
1985), and Dhaka (December 5, 1985) to finalize details and determine a date and place for
the first meeting of South Asian heads of state. At the Dhaka foreign ministers meeting, a
decision was taken to change the name of the organization from South Asian Regional
Cooperation (SARC) to South Asian Association for Regional Cooperation (SAARC). The
change in the acronym was based on the thinking that while SARC refers to the process of
South Asian Regional Cooperation, SAARC marks the establishment of an association
(organization) to promote and develop such cooperation. Finally, the first summit meeting of
11

the heads of state or government of South Asian countries was held at Dhaka from December
7-8, 1985.

4.

OBJECTIVES

Promoting the welfare of the people of South Asia and to improve their quality of life.
Accelerating economic growth, social progress and cultural development in the region and to
provide all individuals the opportunity to live in dignity and to realize their full potential.
Promoting and strengthen collective self-reliance among the countries of South Asia.
Contributing to mutual trust, understanding and appreciation of one another's problems.
Promoting active collaboration and mutual assistance in the economic, social, cultural,
technical and scientific fields.
Strengthening cooperation with other developing countries;
Strengthening cooperation among themselves in international forums on matters of common
interest
The objectives, principles and general provisions, as mentioned in the SAARC Charter, are as
follows :

To promote the welfare of the peoples of South Asia and to improve their quality of
life;

To accelerate economic growth, social progress and cultural development in the

region and to provide all individuals the opportunity to live in dignity and to realise
their full potentials;

To promote and strengthen collective self-reliance among the countries of South Asia;

To contribute to mutual trust, understanding and appreciation of one another's

problems;

To promote active collaboration and mutual assistance in the economic, social,

cultural, technical and scientific fields;

12

To strengthen cooperation with other developing countries;

To strengthen cooperation among themselves in international forums on matters of

common interests; and

To cooperate with international and regional organizations with similar aims and
purposes.

MODULE-II
5.

PRINCIPLES

Cooperation within the framework of the Association is based on respect for the
principles of sovereign equality, territorial integrity, political independence, noninterference in the internal affairs of other states and mutual benefit.

Such cooperation is to complement and not to substitute bilateral or multilateral

cooperation.

Such cooperation should be consistent with bilateral and multilateral obligations of

the member states.
Decisions at all levels in SAARC are taken on the basis of unanimity.
Bilateral and contentious issues are excluded from its deliberations.
Respect for sovereignty, territorial integrity, political equality and independence of all
members states
Non-interference in the internal matters is one of its objectives
Cooperation for mutual benefit
All decisions to be taken unanimously and need a quorum of all eight members
All bilateral issues to be kept aside and only multilateral(involving many countries)
issues to be discussed without being prejudiced by bilateral issues.
To promote and strengthen collective self reliance
To improve the quality of life in the country for citizens
accelerate economic growth,cultural progress and social development
strengthen co-operation with other developing countries
co-ordinate with international and regional organizations
promote active collaboration and assistance
cultural,social,economic,scientific,defense and technological Fields

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6. SAARC STRUCTURE
6.1.

Summit

FIRST SAARC SUMMIT

Dhaka, December 8, 1985.

Establishing the regional association, and established study groups on the problems of
terrorism and drug trafficking

The summit also agreed to establish a SAARC secretariat and adopted an official
SAARC emblem

SECONDSAARC SUMMIT
Bangalore, November 17, 1986.

The Heads of State or Government welcomed the signing of the Memorandum of

Understanding on the establishment of the SAARC Secretariat by the Council of
Ministers\

Appoint Ambassador Abul Ahsan of Bangladesh as the first Secretary-General of

SAARC.

THIRD SAARC SUMMIT

Kathmandu, November 4, 1987.

The foreign ministers of the member states signed the SAARC Regional Convention
on Suppression of Terrorism and an agreement to establish a South Asian Food
Reserve.[2]
14

FOURTH SAARC SUMMIT

Islamabad, December 31, 1988.

"SAARC Year Against Drug Abuse",

"SAARC Year of the Girl Child",
"SAARC-2000-A Basic Needs Perspective
South Asian Festivals"

FIFTH SAARC SUMMIT

Male , November 23, 1990.

"SAARC Year of Shelter"

"SAARC Year of the Environment",

"SAARC Year of Disabled Persons",

SIXTH SAARC SUMMIT

Colombo 21, 1991.

Attended by the prime ministers of Bangladesh, India, Nepal and Pakistan, the
presidents of the Maldives and Sri Lanka, and the king of Bhutan

SEVENTH SAARC SUMMIT

Dhaka, April 11, 1993.

Attended by the presidents of the Maldives and Sri Lanka, the prime ministers of
Bangladesh, India, Nepal and Pakistan, and the king of Bhutan.

EIGHTH SAARC SUMMIT

New Delhi, May 4, 1995.

International community had successfully created a norm against chemical and

biological weapons; it had, unfortunately, been unable to do the same with regard to
nuclear weapons.

NINTH SAARC SUMMIT

Male, May 14, 1997.

Recognized the need for the international community to pursue nuclear disarmament
as a matter of highest priority.

TENTH SAARC SUMMIT

Colombo July 31, 1998.
15

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.

ELEVENTH SAARC SUMMIT

Kathmandu, January 6, 2002.

Efforts to improve the global security environment.

TWELTH SAARC SUMMIT

ISLAMABAD, 4-6 JANUARY 2004

Signed the Additional Protocol to the SAARC Regional Convention on the

Suppression of Terrorism approved days earlier by the Council of Ministers

THIRTEENTH SAARC SUMMIT

Dhaka, on 1213 November 2005

Included endorsement of the SDGs and establishment of the SAARC Poverty

Alleviation Fund.

FOURTEENTH SAARC SUMMIT

New Delhi, on 3rd-4 April 2007

Attended the chief adviser of the government of Bangladesh.

FIFTEENTH SAARC SUMMIT

Colombo, 2-3 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,etc

SIXTEENTH SAARC SUMMIT

Thimpu, 28-29 April 2010

Plant 10 million trees over the next 5 years.

Signed a SAARC Convention on Cooperation on Environment to tackle the problem
of climate change.

SEVENTEENTH SAARC SUMMIT

Add City, 10-11 of November 2011

General stated that the Summit being held under the theme of Building Bridges
The Foreign Ministers of the respective Member States signed four agreements
Rapid Response to Natural Disasters, Multilateral Arrangement on Recognition of
Conformity
Assessment,etc
16

EIGHTEENTH SAARC SUMMIT

Kathmandu, November 2014.
TO BE HELD

6.2.

Council Of Ministers

Comprising the Foreign Ministers of member states is responsible for the formulation of
policies; reviewing progress; deciding on new areas of cooperation; establishing additional
mechanisms as deemed necessary; and deciding on other matters of general interest to the
Association. The Council meets twice a year and may also meet in extraordinary session by
agreement of member states. It has held fifteen sessions till November 1995.

6.3.

Standing Committee

Comprising the Foreign Secretaries of member states is entrusted with the overall monitoring
and coordination of programmes and the modalities of financing; determining inter-sect oral
priorities; mobilising regional and external resources; and identifying new areas of
cooperation based on appropriate studies. It may meet as often as deemed necessary but in
practice it meets twice a year and submits its reports to the Council of Ministers. It has held
twenty regular sessions and two special sessions till November 1995.

6.4.

Programming Committees

Comprising the senior officials meets prior to the Standing Committee sessions to scrutinize
Secretariat Budget, finalise the Calendar of Activities and take up any other matter assigned
to it by the Standing Committee. This Committee has held fifteen sessions till November
1995.

6.5.

Technical Committees

Comprising representatives of member states formulate programmes and prepare projects in

their respective fields. They are responsible for monitoring the implementation of such
activities and report to the Standing Committee. The chairmanship of each Technical
Committee normally rotates among member countries in alphabetical order, every two years.
At present, there are twelve Technical Committees. However, with the merger of the
Technical Committees on Environment and Meteorology, beginning from 1st January 1996,
the number of Technical Committees will be eleven.

6.6.

Action Committees

According to the SAARC Charter, there is a provision for Action Committees comprising
member states concerned with implementation of projects involving more than two, but not
all member states. At present, there are no such Action Committees.

6.7.

Secretariat
17

Established in Kathmandu on 16 January 1987, the SAARC Secretariat is responsible to

coordinate and monitor the implementation of SAARC activities, service the meetings of the
Association and serve as the channel of communication between SAARC and other
international organizations.
1. Abu Ashen (Bangladesh)
2. Kant Inshore Baraga (India)
3. Ibrahim Husain Saki (Maldives)
4. Yadab Kant Silwal (Nepal)
5. Naeem U.Hasan (Pakistan)
6. Nihal Rodrigo (Sri Lanka)
7. Q.A.M.A. Rahim (Bangladesh)
8. Chenkyab Dorji (Bhutan)
9. Sheel Kant Sharma (India)
10. Fathimath Dhiyana Saeed (Maldives)
11. Ahmed Saleem (Maldives)
12. Arjun Bahadur Thapa

6.8.

(16 Jan 1987 - 15 Oct 1989)

(17 Oct 1989 - 31 Dec 1991)
(1 Jan 1992 - 31 Dec 1993)
(1 Jan 1994 - 31 Dec 1995)
(1 Jan 1996 - 31 Dec 1998)
(1 Jan 1999 - 10 Jan 2002)
(11 Jan 2002 - 28 Feb 2005)
(1 Mar 2005 - 29 Feb 2008)
(1 Mar 2008 - 28 Feb 2011)
(1 Mar 2011 - 22 Jan 2012)
(12 Mar 2012 - 28 Feb 2014)
(CURRENT)

Financial Arrangements In Saarc

Member states make provision in their respective national budgets, for financing activities
and programmes under the SAARC framework including contributions to the Secretariat
budget and that of the regional institutions. The financial provision thus made is announced
annually, at the meeting of the Standing Committee.
The annual budget of the Secretariat, both for capital as well as recurrent expenditure, is
shared by member states on the basis of an agreed formula. The initial cost of the main
building of the Secretariat, together with all facilities and equipment, as well as that of the
annex building completed in 1993 has been met by the host government.
A minimum of forty percent of the institutional cost of regional institutions is borne by the
respective host government and the balance is shared by all member states, according to an
agreed formula.

18

7. INTEGRATED PROGRAMME OF ACTION (IPA)

The IPA is a key component of the SAARC process and includes twelve agreed areas of
cooperation, each being covered by a designated Technical Committee.
In response to the emphasis given by successive Summits on the need to further consolidate
and streamline IPA and to make it more result oriented, a comprehensive set of guidelines and
procedures was adopted in 1992 for the rationalization of SAARC activities. As a result of
this, there is now a greater focus on activities that would bring tangible benefits to the people
of South Asia.
The Secretary-General reports on the progress in the implementation of IPA to the Standing
Committee, both at its inter-Summit and pre-Summit Sessions.
The Standing Committee has also taken the initiative to review the institutional mechanisms
and activities of the Association, including, the evaluation of the functioning of the Technical
Committees, amalgamation/alteration of their mandate and also a review of the role of the
Secretariat.

7.1.

Agriculture (Tc01)

Agriculture was among the original five areas identified for fostering regional cooperation.
The first meeting of TC01 was held in 1983. Subsequently, Forestry was also included in the
work of the Technical Committee. TC01 was instrumental in the setting up of SAARC
Agricultural Information Centre (SAIC) at Dhaka in 1988 - the first SAARC regional
institution.
Member states have been exchanging Germplasm, Breeding Materials on Livestock and
Fishery in accordance with the quarantine regulations in force in their respective countries.
19

Prototypes of Farmtools and Equipment have been exchanged for trial and adaptation.
Activities for Improved Livestock through Exchange of Animals, Frozen Semen and Vaccine
have also been undertaken. The responsibility of compiling lists of institutions and disciplines
capable of offering training in member countries has been entrusted to SAIC. Rice and
Wheat-breeding Programmes for enhancing productivity have been conducted while
Multilocation trials for various crops are being undertaken.
Regular meetings of Counterpart Scientists is a very important feature of the Committee's
programmes. The list of Counterpart Scientists in the twelve agreed areas of crops and
disciplines have been finalised for networking. These are : Rice (Millet); Wheat; Oilseeds;
Horticulture (Potato) Vegetables and Fruits; Fisheries; Forestry; Transfer of Technology;
Livestock (Animal Health and Production); Farm Machinery and Implements; Post Harvest
Technology; Agriculture Economics & Policies and Soils. Progress has been made towards
establishing a network on Amelioration of Problem Soils.
The programme for the 1990s focuses on Genetic Engineering and Bio-Technology (for crop
and livestock improvement, agricultural and horticultural development, embryo transfer
technology for livestock and conservation of endangered germplasm); Homestead Vegetable
Production; Food Availability and Nutritional Balance; Data Base on Technology and
Training facilities in agricultural science within the SAARC countries; and meeting of the
Expert Group on Crop Diseases. Two important project proposals namely
i) Promotion of the "Bio-Villages, and
(ii) Reaching the Million - Training of Farmers and Farm Women by 2000 A.D. have recently
been completed and future course of action on these proposals is underway.

7.2.

Communications (Tc02)

C on Telecommunications and TC on Postal Services both established in 1983 which had

hitherto functioned separately were amalgamated into a single TC on Communications with
effect from 1993.
With a view to bringing about an over-all improvement in the postal services in the region,
the work programme in this sector included training, seminars, workshops study tours etc.
Training programmes were held for First and Middle Level Officers and for Trainers as well
as in Philately, International Postal Services, International Mail Accounting and Routing,
Postal Management Services and Post Office Savings Banks. Seminars / Workshops were
organized on Postal Operation and future challenges, Mechanization of Postal Operations,
Agency functions, Financial Services, Caring for Customer, Expedited Mail Service (EMS),
Circulation System of EMS and Postal Marketing.
Study tours on Agency Services, Safety and Security of Postal Articles, Postal Services in
Hilly or Rural Areas and New Mail and Financial Service in Pakistan were undertaken to gain
first-hand knowledge of problems and plans for improvement of postal services.
Since 1985, Letter Writing Competitions have been held annually. Studies had been
undertaken on Productivity Measurement Techniques applied in postal operations, Postal
Delays in SAARC region, Integration of Postal Services with rural development and
20

Concessional Mail Tariff and Mail Transmission. Other activities undertaken include issuance
of commemorative stamps, postage stamp displays and philatelic exhibitions.
Within the overall objective of providing telecommunication services to majority of the rural
population by the year 2000, TC02 has focused on efforts to promote technological and
human resource development and management. There has been substantial progress in
implementing the recommendations for the establishment of ISD, automatic telex, and
bureaufax facilities, improvement of inter-country links, introduction of common collection
charges and media independent tariff, adoption of SDR as common accounting unit and offpeak period tariff.
Short-term activities in Telecommunications include Seminars/Workshops on Data
Transmission, Digital Switching, Network Management, Operations, Software maintenance,
Trends in External Plants practice, Adoption of new technologies in rural telecommunication
system, Transition from analogue to digital transmission, improvement of quality services in
telecommunications, IDR satellite technology and improvement of rural telecommunications.
Training courses have also been held on new technologies for maintenance of switching
systems, software development, financial management, packet switch data network and
NEAX 61.

7.3.

Education, Culture And Sports (Tc03)

TC on Education (established in 1989) and TC on Sports, Arts and Culture (established in

1983) were amalgamated into a single TC on Education and Culture with effect from 1993.
TC03 was renamed in 1995 as TC on Education, Culture and Sports.
The priority themes identified for cooperation in the field of Education are Women and
Education; Universal Primary Education; Literacy, Post Literacy and Continuing Education;
Educational Research; Science and Technical Education, Education for the Underserved
Areas and Distance Education. The nominations of Nodal Agencies for each of the priority
themes have been completed and appropriate Action Plans are being prepared.
Short-term activities in the field of Education include, Expert Group Meetings;
Workshops/Seminars on the priority themes; Modernisation of Curriculum; Environmental
Education including Population Education; Planning and Management of Education, Teacher
Training, Higher Education and Book Production and Marketing.
TC03 is also engaged in the improvement and expansion of the SAARC Chairs, Fellowships
and Scholarships Scheme. Nodal Points for networking arrangement for sharing information
on Mass Literacy Programmes have been identified. The modalities and operational
framework for this purpose are being prepared.
Short term activities in the field of Culture include six South Asian Archaeological
Congresses; one History Conference; Workshops / Training / Seminars on Conservation of
Wall Paintings, Documentation of Musical and Oral Traditions, Archives and Photographic
Exhibitions of Monuments, National Heritage and an Expert Group Meeting on Preservation
of Monuments and Archival Materials. In the field of Arts and Exhibition of Handicrafts;
21

Workshops on Sea Based Crafts and Artisans at Work; and SAARC Painters Camp have been
held.
As part of the regional cooperation activities in Sports, Coaching Camps / Clinics have been
conducted in Table Tennis, Squash, Hockey, Basketball, Swimming, Athletics and Volleyball.
Training of Experts in Sparktaid has been conducted. Basketball and Football Tournaments
and SAARC Marathons have been organised.

7.4.

Environment (Tc04)

The Third SAARC Summit (Kathmandu, 1987) decided to commission a study on "Causes
and Consequences of Natural Disasters and the Protection and Preservation of the
Environment". National Studies were undertaken and subsequently consolidated into a
Regional Study, which was approved by the Sixth SAARC Summit (Colombo, 1991).
The recommendations of the above Regional Study were considered by the Committee on
Environment (February 1992), which identified, for immediate action, measures for
strengthening the environment management infrastructure; programmes on environmentally
sound land and water use planning; research and action programme on mountain
development in the Himalayan Region; coastal zone management programme; a SAARC
forestry and watershed programme; programme on energy and environment; pollution control
and hazardous waste management programme; a SAARC cooperative programme for
biodiversity management; peoples participation in resource management; information
exchange on low cost and environmentally sound habitat technologies; establishment of a
SAARC relief and assistance mechanism for disaster and regional cooperation on the
development of modern disaster warning systems.
A special session of the Committee on Environment (November 1992) met to evolve specific
programme activities and modalities to implement the above measures.
The Fourth SAARC Summit (Islamabad, 1988) decided that a joint study be undertaken on
"Greenhouse Effect and its Impact on the Region". National Studies prepared by member
states were consolidated into a regional study, which was approved by the Seventh SAARC
Summit (Dhaka, 1993).
The Committee on Environment was designated as the Technical Committee on Environment
and included within its purview, "Greenhouse Effect and its Impact on the Region". It began
functioning from January 1, 1993.
TC04 has identified measures for immediate action from among the recommendations and
decided on a number of modalities for their implementation. These include, improving
climate monitoring capability through networking arrangement and through SAARC
Meteorological Research Centre (SMRC); developing climate change and sea-level rise
scenario through country specific studies and sharing of information data in this respect;
making available to member states expertise on climate research and monitoring Greenhouse
Gases emission; identification of training and research institutions and ongoing programmes;
exchange of information and data; exchange of experience on strategies for developing,
mitigating and adaptive responses to climate change.

22

TC04 also covers topics such as Approaches to Environmental Legislations, Regulations and
Standards in SAARC countries; Rehabilitation of Degraded Lands; Training Course on
Wetlands Assessment and Management; Workshop on Alternate/Renewable Energy and
Workshop of SAARC National Experts on Climate Change. The urgent need to establish a
networking approach through identified nodal points/institutions has also been stressed.
A SAARC Environment Ministers Conference was held in New Delhi in April 1992 to evolve
a joint position on the issues related to the UN Conference on Environment and Development
(UNCED). SAARC also presented a common position paper to the Fourth World Conference
on Natural Disaster Reduction (Yokohama, May 1994).
TCs on Environment and Meteorology will be merged and designated as TC on Environment
and Meteorology with effect from 1 January 1996.

7.5.

Health And Population Activities (Tc05)

Health and Population Activities was one of the original five areas of cooperation identified
by member states. The First Meeting of TC05 was held in 1984.
The primary focus of TC05 has been on children, population welfare and policy, maternal and
child health, primary health care, disabled and handicapped persons, control and eradication
of major diseases in the region such as malaria, leprosy, tuberculosis, diarrhea diseases,
rabies, AIDS, and iodine deficiency disorder.
Important activities undertaken by TC05 include the setting up of the SAARC Tuberculosis
Centre (STC), in Kathmandu in 1992, devising a standard Format for preparing the Annual
Review of the Situation of Children in the SAARC region; establishment of networking
arrangements for training, research and eradication of malaria and regional approach for
combating major diseases in the region. A Directory of training programmes in six priority
areas, i.e. malaria, tuberculosis, leprosy, diarrhoeal diseases, human rabies and maternal and
child health have been prepared and circulated. In addition, several status papers on important
subjects relating to health have been circulated among member states.
The Second SAARC Summit (Bangalore, 1986) decided that the survival, protection and
development of Children should be given highest priority and directed that annual reviews be
undertaken on the situation of children in SAARC countries. Such annual reviews for the
years 1993 and 1994 have been completed by TC05 based on annual country reports
submitted by member states. These annual reviews have indicated, inter-alia, reduction of
infant mortality and significant progress in the immunisation programme for children in the
region.
TC05 will be renamed as TC on Health, Population Activities and Child Welfare with effect
from 1 January 1996.

7.6.

Meteorology (Tc06)
23

Meteorology was also one of the five areas of cooperation initially identified by member
states. The first meeting of TC06 was held in 1984. Since its inception, the Committee has
been involved in organizing seminars/workshops in areas such as Joint Inter-Comparison of
Barometers, Meteorological Instruments, Agricultural Meteorology, Numerical Weather
Prediction, Crop-Weather relationship and Crop-Yield Forecast, Long Range Weather
Forecasting, Radar Meteorology etc. Training programmes have been conducted on
Meteorological Tele-communications, Management and Establishment of National Data
Centers, Monsoon Forecasting etc. State-of-the-art Reports on Western Disturbances,
Tropical Cyclones including Prediction of Recurvature, Thunder Storms, Long Range
Forecasting of Monsoon Rain, Short Range Prediction of Monsoon and Norwesters,
Tornadoes and Water Sprouts, have been completed. Expert panels have been convened on
specialized fields such as Agro-meteorology; Climatology and Data Exchange; and
Instrumentation.
An Annual Regional Award is given to a young scientist or a group of scientists for a research
paper on meteorological topics to encourage research in the field of Meteorology. Another
Award has been introduced since 1995 for senior scientists to encourage research work in the
field of Meteorology.
The programmes for 1990s identified by the Committee include, the establishment of
National Data Centers, conducting studies on Meteorological aspects of Environment
Pollution, establishment of Port Meteorological Offices for obtaining Data from Ocean areas.
TC06 has also identified long-term measures, such as creation of a Regional Data Bank,
Organization of Research Flight Facilities for probing cyclones, networking for Drifting and
Anchored Buoys in Oceanic Regions, Environmental Pollution Monitoring stations,
Preparation of Atlases of Meteorological Parameters and Familiarization with Computer
Technology as needed for meteorological research, including visits to computer centers and
cost of consumable.
TCs on Meteorology and Environment will be merged and designated as TC on Environment
and Meteorology with effect from 1 January 1996.

7.7.

Prevention Of Drug Trafficking And Drug Abuse (Tc07)

Since its establishment in 1987, TC07 has implemented a number of programmes in law
enforcement, prevention, treatment and rehabilitation as essential elements of a coordinated
regional strategy in combating drug trafficking and drug abuse. It contributed significantly
towards the finalisation of the SAARC Convention on Narcotic Drugs and Psychotropic
Substances in November 1990, which came into force in September 1993 upon its ratification
by all member states.
Cooperation among Drug Law Enforcement Agencies and Officers is being developed
through short-term activities such as Seminars and Training Courses. Nodal Agencies in
member states have been nominated to exchange information and intelligence on drug
offences. The SAARC Drug Offences Monitoring Desk (SDOMD) has been established in
Colombo to collate, analyse and disseminate information on drug offences. Efforts are afoot
for further strengthening SDOMD.
In the field of demand reduction, short-term activities such as workshops/ seminars held so
far have focused on the role of media in drug abuse prevention, community mobilization
24

against drug abuse, preventive education, school curriculum development, treatment and
relapse prevention and exchange of information on indigenous and innovative methods of
treatment. A networking arrangement among Nodal Institutions in drug abuse prevention is
being established.
Meetings of selected NGOs involved in Drug Abuse Prevention have been held. A Directory
of such Organisations has been compiled in order to promote greater interaction among them.
The Colombo Plan Bureau's Project Proposal and the establishment of working relations
between SAARC and the Colombo Plan Bureau were approved by the Twentieth Session of
the Standing Committee. This will promote and encourage cooperation among NGOs in
SAARC countries involved in anti-narcotics activities.
Efforts have been directed at promoting SAARC member states' accession to the relevant UN
Conventions, conclusion of Regional and Drug Convention and harmonisation and
consolidation of national drug laws. A Memorandum of Understanding for cooperation
between SAARC and the United Nations International Drug Control Programme (UNDCP)
has been signed.

7.8.

Rural Development (Tc08)

Rural Development is one of the five original areas identified for cooperation under the IPA.
The first meeting of the Committee was held in 1984. Specific activities taken up by the
Technical Committee include, exchange of information and literature among member states
on issues relating to rural development, preparation of research studies on selected topics,
compilation of lists of experts, training institutes, and institutions involved in transfer of
appropriate technology in member states, with a view to exchanging expertise and sharing
training facilities within the region.
Several workshops/seminars and training courses covering practically all aspects of rural
development including regional planning, poverty focused development, rural energy, design
of agricultural projects, local level planning, inter-country comparisons, appropriate
technology, disaster management, rural child development, rural sociology, peoples
participation, rural water supply, employment generation, social forestry, rural
communication and development of agricultural markets have been conducted in member
states under the TC08.
Priority areas identified by TC08 for the 1990s for the selection of well identified, targetoriented and time bound programmes are Poverty Alleviation, Employment, Human Resource
Development and Organization of Rural Poor, Women in Development, Sustainable Rural
Development, Environment and Technology transfer.
The decision to establish a Shelter Information Network "SHELTERNET" has been followed
up by an Expert Group meeting which has defined its objectives and prepared detailed
financial cost-estimates as well as operational modalities for final approval.
The Committee has also been entrusted with the work relating to the SAARC Youth
Volunteers Programme (SYVOP) since November 1989.
25

7.9.

Science And Technology (Tc09)

Since its establishment in 1983, TC09 has undertaken a wide variety of programmes which
include short-term activities such as Seminars/Workshops, Training Programmes, Joint
Research Projects, preparation of State-of-the-art Reports and compilation of Directories.
Seminars/Workshops/ Meetings of Experts held so far were on: Post Harvest and Food
Technology; Renewable Energy Resources; Photovoltaic; Pesticides; Instrumentation,
Maintenance and Calibration, Cultivation and Processing of Medicine and Aromatic Plants;
Delivery System of Improved Stoves for Rural Users; Low Cost Housing Technology
Diffusion in Rural Areas; Treatment of Drinking Water in Rural and Urban areas; Science
Policy; Low Cost Scientific Educational Equipment; Bio-Fertilizer Technology; Bio-Mass
Gasification; Recycling of Waste Water and Development of Technologies for Pollution
Control; Technology Information and its Linkages; Biological Control of Plant Pests;
Immunodiagnostics; Ore Benefaction; Energy Modeling Techniques; Solar Thermal
Technology; Technological Aspects of Low Cost Housing; Examination of Operational
System of Rural Electrification Cooperative; and Short Course on Technology Assessment
and Technology Diffusion.
Training Programmes have also been held for Scientists and Technologists on Tannery Waste
Management, Low Cost Housing, Development of Prawn Hatcheries, Electronics and
Molecular Biology. In addition, Joint Research Projects on Design and Manufacture of Food
Processing Equipment and Appropriate Post Harvest Food Technology for Perishable Items
have been carried out.
State-of-the-art Reports have been completed on Bio-Gas; Mineral Resources Exploration;
Producer Gas; Application of Remote Sensing Techniques; and Use of Organic Fertilizers.
The Report currently under preparation include Building Materials and Technologies;
Integrated Management of Tannery Waste; Selected Rural Technologies; Food Processing
Technologies and Handicrafts; Local Electronic Products in the SAARC Region; and Biotechnology.
Directories are being prepared on Specialized Analytical Instrumentation Facilities and
Techniques; and Process Engineering/Pilot Plant Facilities in Agro Food Processing.
Networking Arrangements are being established in the fields of Bio-technology and Genetic
Engineering, Energy Modeling Techniques, Technology Information and Low Cost Housing
and Building Technologies.

7.10. Tourism (Tc10)

TC10 was established in 1991 to promote cooperation in the field of tourism in the region. At
its first meeting held in Colombo in October 1991, the Committee decided on an Action Plan
on Tourism to promote cooperation in the areas such as training programmes, exchange of
information, joint promotion, jointventure investment, intraregional tourism etc. It also
reviewed progress on the SAARC Scheme for Promotion of Organized Tourism. These topics
have formed an integral part of the agenda of the five Meetings of this Committee which have
been held so far.

26

Under the purview of TC10, member countries have exchanged information on training
facilities existing in the region and a number of slots for providing training in the field of
tourism and hotel management were offered. TC10 has decided upon steps to produce joint
tourism brochure, SAARC Travel Guide and joint-production of SAARC tourism
promotional film on the theme "A Unique Holiday with Diversity : From Top of the World to
the Sunny beaches". Activities such as familiarisation tours and Food Festival in member
states were also identified. Steps were also taken to coordinate the participation of SAARC
member states in international tourism fairs. Emphasis is also being placed on the importance
of early launching of the SAARC Scheme for Promotion of Organised Tourism.

7.11. Transport (Tc11)

In recognition of the importance of the transport sector, TC11 was set up in 1983. The work
of the Technical Committee covers three major segments of transport, i.e. land transport,
divided into roadways and railways; sea transport sub-divided into inland waterways and
shipping; and air transport.
The activities of TC11 cover exchange of data and information, preparation of status papers,
compilation of data-base and directories of consultancy centres for transport sector. Seminars
and Workshops have covered areas such as Material and Cost of Road Construction,
Maintenance of Roads, Rural Roads, Road transportation and safety; Containerisation for
Railways, Urban transportation, Inland Water Transport, Maritime Transport etc.
Training Courses have included Corporate Planning for Railway sector, Highway and Bridge
Engineering. A Compendia of Information on Roads in the SAARC region has been
completed and similarly data on Railway Transport has been compiled. Two important
Directories - one on Centres of Excellence and the other on Consultants and Experts in the
field of transport are being prepared. An important Study on "In-depth examination of
Transport Infrastructure and Transit Facilities so as to come up with viable proposals for
Improvement" has recently been completed.

7.12. Women In Development (Tc12)

Women in Development was included as an area of cooperation under the IPA in 1986.
Specific issues taken up by TC12 include, preparation of a Regional Plan of Action for
Women, effective dissemination of technical information relating to women in development
generated by member states, preparation of Guide Books on Women in Development by
member states etc. SAARC Women's Journals on specific themes relating to women in
development have been published to coincide with important events like SAARC Summits.
On the recommendation of the Committee, 1990 was designated as the "SAARC Year of the
Girl-Child" and subsequently 1991-2000 A.D. declared as the "SAARC Decade of the GirlChild". A SAARC Plan of Action has been drawn up to observe the decade in order to
highlight the gender disparities in the region and to promote the welfare of the Girl-Child.
Member states are now in the process of implementing the Plan of Action. In this connection
SAARC would be conducting a comprehensive mid-decade review for presentation to the
Ninth SAARC Summit.

27

SAARC has recognised the serious threat faced by certain groups of Girl Children in
Especially Difficult Circumstances (GCEDC) and decided that an urgent appraisal of the
situation of these children be undertaken and presented to the Ninth SAARC Summit.
Several short-term activities like seminars, workshops and training courses have been held in
the areas of women in law, women and environment, women's education and training,
women's employment, women in agriculture and extension etc. Several activities related to
different aspects of the Girl-Child have also been held under the Committee. Exhibitions on
Handicrafts and Design by Women have also been organised by member states.
A Women's Cell has been established in the SAARC Secretariat to act as a Data Bank and a
store house of information on Women in Development in the region. It will also act as a
forum for coordination among member states and other TCs.
A SAARC collective position on issues before the Fourth World Conference on Women in
Beijing in September 1995 had been formulated and a "SAARC Ministerial Meeting on
Women: Towards the Fourth World Conference on Women in Beijing" has been held and the
Dhaka Resolution adopted at the meeting provided additional input from SAARC Countries
to the Beijing Conference.
Girl representatives present the Girl-Child's Appeal to the Heads of State or Government
during the Fifth SAARC Summit (Male', November 1990)

8.

COOPERATIONS

8.1.

BIOTECHNOLOGY COOPERATIONS

The need to institutionalize and promote cooperation in the area of Biotechnology has been
recognized by the Heads of State or Government at various SAARC Summits since 1990.
From 1990-2003, cooperation the area of Biotechnology was pursued by the Technical
Committee on Science and Technology. A Working Group on Biotechnology was established
in 2004 as a part of the restructured SAARC Integrated Programme of Action to coordinate
regional cooperation in the area of Biotechnology.
Since 2004, the Working Group on Biotechnology has met three times. The First and Second
Meeting of the Working Group on Biotechnology was held in Kathmandu in April 2004 and
December 2006 under the Chairmanship of Nepal. Sri Lanka assumed the Chair of the
Working Group on Biotechnology on 1 January 2009 for a period of two years. The Third
Meeting of the Working Group on Biotechnology was held in Colombo in June 2009.
The Third Meeting of the Working Group on Biotechnology (Colombo, 4-5 June 2009),
among others, considered and finalized a Concept Paper on a Programme of Cooperation in
the field of Biotechnology between SAARC Member States.

28

The Programme for Cooperation in the field of Biotechnology provides for cooperation the
following areas:
(i)

Medical Biotechnology

(ii) Agricultural Biotechnology

(iii) Environmental Biotechnology
(iv) Animal Biotechnology
(v)

Marine Biotechnology

(vi)

Bioinformatics

(vii) Plant Tissue Culture

(viii) Genetically Modified Organisms and bio-safety
(ix)

Marker Assisted Selection

(x)

Bio-fertilizer and Bio-gas

(xi)

Vaccine Production

(xii) Genomics and Proteomics

(xiii) Nano-biotechnology
(xiv) RNA interference technology platform
(xv) Stem cell research
(xvi) Industrial biotechnology

8.2. TRADE AND ECONOMIC COOPERATION

SAARC has taken important steps to expand cooperation among member countries in the
core economic areas. In 1991, a Regional Study on Trade, Manufactures and Services (TMS)
was completed outlining a number of recommendations for promoting regional cooperation
in the core economic areas. The Council of Ministers at its Ninth Session in Mal in July
1991 endorsed the Study and decided to set up a high-level Committee on Economic
Cooperation (CEC). This Committee has so far held six meetings.
The following initiatives have also been taken towards promoting trade cooperation within
the region:
8.2.1. Cooperation In The Field Of Handicrafts And Cottage Industries
29

A Group of Experts on Joint Ventures in Handicrafts and Cottage Industries was established
in 1991 pursuant to the decision of the Fifth SAARC Summit (Mal, 1990). So far, the Group
has held two meetings in which it has identified an indicative list of crafts and industries for
the purpose of mutual cooperation. Out of this list, the Group has selected six sectors namely:
hand knotted carpets, beekeeping and honey production, handloom textile products (including
embroidery), leather products (including leather garments), wooden handicrafts and pottery
and ceramic products as priority areas. It has made several recommendations regarding
development of marketing and export promotion, design development, procurement and
supply of certain raw material, skill upgradation and transfer of technology, entrepreneurship
development. The implementation of these recommendations is reviewed regularly by the
Committee on Economic Cooperation (CEC). At its Sixth Meeting in New Delhi in
November 1995, CEC urged member states to take all necessary steps for the speedy
implementation of these recommendations. The Committee requested the Secretariat to
coordinate organisation of other agreed activities through consultations with member states as
appropriate.

8.2.2. Study on Transport Infrastructure and Transit Facilities

The CEC was directed by the Council of Ministers at its Eleventh Session (Colombo, July
1992) to specify appropriate steps for further improvement of transport infrastructure and
transit facilities in the region to accelerate the growth of trade within and outside the region.
Subsequent to this, a consultancy report was prepared on the subject by the Institute for
Sustainable Development, Kathmandu.

MODULE-III
9. PROMOTING PEOPLE-TO-PEOPLE CONTACT
The Second SAARC Summit (Bangalore, 1986) laid special emphasis on promoting peopleto-people contact in the region and approved the following five initiatives in this regard:

9.1.

Saarc Audio-Visual Exchange (SAVE) Programme

The SAVE programmes comprise of regular TV and Radio Programmes which are being
telecast/broadcast on the 1st and 15th of each month respectively in all SAARC member
countries. SAVE Radio and TV Quiz Programmes are also being held at regular intervals and
have evoked keen interest among the youth. The other programmes include joint productions
on specific Themes such as Environment, Disabled Persons and Youth. SAVE has proved to
be an effective medium for promoting South Asian consciousness amongst the peoples of the
region and for establishing people-to-people contact.

9.2.

Saarc Documentation Centre (SDC)

The Centre has been established to provide ready access to reliable and up-to-date
information on technical, scientific and development matters.

9.3.

Saarc Scheme For Promotion Of Organised Tourism

30

The Scheme was initiated with the over-all objective of people-to-people contact in the region
and more specifically as a step to facilitate development of intra-regional tourism.
Confessional air fare to the tourists travelling under the Scheme is now under the
consideration of the Technical Committee on Tourism which is presently taking necessary
action to ensure early implementation of the Scheme.

9.4.

Saarc Chairs, Fellowships And Scholarships Scheme

The SAARC Chairs, Fellowships and Scholarships Scheme was instituted with the aim of
providing increased cross-fertilization of ideas through greater interaction among students,
scholars and academics in the SAARC Countries. This Scheme has now been brought under
the purview of the Technical Committee on Education, Culture and Sports.

9.5.

Saarc Youth Volunteers Programme (SYVOP)

1.The main objective of the SYVOP is to harness the idealism of Youth for regional
cooperation programmes by enabling them to work in other countries in the field of
agriculture and forestry extension work. SYVOP was brought under the purview of the
Technical Committee on Rural Development in 1989. Seven activities have so far been held
in the member countries under this programme.

10. SAARC REGIONAL INSTITUTIONS

10.1 Saarc Agricultural Information Centre (SAIC)
SAIC, the first regional institution, was established in Dhaka in 1988. A Governing Board
formulates policy matters, approves projects, recommends budget estimates, monitors and
evaluates administrative and overall activities of SAIC. The SAIC Director is the MemberSecretary of the Board.
SAIC serves as a central information institution having a network with relevant national
information centres in each member state with a view to rapidly exchange regionally
generated technical information and thereby strengthen agricultural research and
development activities. SAIC has brought out several publications which contain information
on various agricultural institutions in SAARC countries and current contents services on
various subjects like fisheries, forestry, livestock, potato, rice etc. SAIC also publishes a
quarterly newsletter.
Some of the completed programmes are : Directory of Agricultural Institutions in SAARC
Countries; Directory of Agricultural Scientists and Technologists of SAARC countries;
Database on Fish Diseases in the SAARC Region; Database on Potato; Directory of
Agricultural Periodicals of the SAARC Countries; Bibliography of Women in Agriculture in
the SAARC Countries; Bibliography of Agroforestry in the SAARC Region.
31

The on-going and future programmes of SAIC include: Selective Dissemination of

Information (SDI); Preparation and Distribution of Selective Bibliographies; Acquisition of
Books, Journals, Annual Reports etc. produced in the SAARC Countries; Directory of ongoing Research Projects in SAARC member states; SAARC Agricultural Fact Book;
Improved Farm Implements Currently used in the SAARC Countries; Procurement and
Processing of Non-conventional Agricultural Information Materials; Abstracting and
Indexing of Articles of Journals/ Newspapers and other Periodicals etc.

10.2. Saarc Tuberculosis Centre (STC)

Located at Thimi, Bhaktapur (Nepal), STC became operational in mid-July 1992. The
Centre's main objective is to work towards the prevention and control of tuberculosis in the
SAARC region through a better coordination of efforts of the member states, especially their
tuberculosis control programs. Institutional structure of the Centre consists of a Governing
Board. A Director appointed to head the Centre is responsible for the implementation of the
programmes and activities of the Centre. He is also the ex-officio Member-Secretary of the
Board.
Since its inception, STC has undertaken a number of initiatives for the prevention and control
of tuberculosis in the region. It has undertaken a number of important training programs for
the medical practitioners in the relevant areas and also organised several seminars. Some of
its notable activities included seminars on surgical aspects of tuberculosis, socio-cultural
aspects of tuberculosis, tuberculosis control programme through primary health care
approach etc. The Centre has also organised a number of trainers training programs for
tuberculosis in the region. Its other useful initiatives resulted in the compilation and printing
of a SAARC list of TB hospitals, TB training institutes in the region, compilation of a similar
list on TB and chest specialists in South Asia. The Centre is also actively engaged in collation
and distribution of information on national tuberculosis control programs in SAARC
countries, networking arrangements among member countries on tuberculosis related subjects
as well as circulation of information on research activities in the region on tuberculosis.

10.3. Saarc Meteorological Research Centre (SMRC)

The SMRC, established in Dhaka, was inaugurated on 2 January 1995.
The Center will concentrate primarily on the research aspects of weather forecasting and
monitoring rather than the operational aspects of the medium and long-range forecasting. The
responsibilities of the Center would include undertaking research relevant to weather
prediction and compiling climatological information. In addition to monitoring special
weather phenomena, developing a networking system among the member states would also
receive priority in its work. SMRC has a Governing Board, comprising a representative from
each member state.
Some of the important activities being undertaken by SMRC are collecting from national
meteorological services of member states the available lists of up-to-date climatological
information for compilation; compiling a Directory of Meteorological Professionals and
Technicians available in the National Meteorological Services of member states; publishing
an annual newsletter regarding activities and programmes of the Center; and collecting
required meteorological data from sources outside the region for its research programmes and
to disseminate it to member states.
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10.4. Saarc Documentation Center (SDC)

SDC has been established at the Indian National Scientific Documentation Center (INSDOC)
in New Delhi in May 1994. The SDC Director is responsible for the implementation of the
programmes/activities of the Center and is also the Member Secretary of the SDC Governing
Board which comprises a representative from each member state.
The SAARC Documentation System (SDS) comprises the central facility i.e. SDC and its sub
units in member states which would act as the Center's repositories, the SAARC Secretariat
and SAARC Regional Institutions. In fulfilling the need for ready access to information, SDC
will focus on documents generated in member states, those generated elsewhere in the
SAARC region and access to international data bases in the areas of biological, physical,
chemical, engineering, and life sciences as well as in developmental matters.

11. SAARC CONVENTIONS/AGREEMENTS

11.1. Agreement On Establishing The Saarc Food Security Reserve (SFSR)
During the Third SAARC Summit (Kathmandu, 1987), an Agreement on establishing the
SAARC Food Security Reserve was signed. The Agreement, which came into force on 12
August 1988, provided for a reserve of foodgrains for meeting emergencies in member
countries. The size of the reserve at present stands at 241,580 tonnes.
The SAARC Food Security Reserve Board comprises representatives from each member
country and meets once a year. The main functions of the Board are to undertake a periodic
review and assessment of the food situation and prospects in the region including factors such
as production, consumption, trade, prices, quality and stocks of foodgrains.

11.2. Saarc Regional Convention On Suppression Of Terrorism

The SAARC Regional Convention on Suppression of Terrorism was signed in Kathmandu in
November 1987 during the Third SAARC Summit and came into force on 22 August 1988
following ratification by all member states.
The Convention embodies and gives a regional focus to many of the well-established
principles of international law in this respect. Under its provisions, member states are
committee to extradite or prosecute alleged terrorists thus preventing them from enjoying safe
heavens.
33

Regional Cooperation is also envisaged in preventive action to combat terrorism. Exchange

of information, intelligence and expertise are among the areas identified for mutual
cooperation under the Convention. Cooperation among Liaison Officers (Anti Terrorist Law
Enforcement Officers) is being developed through holding international meetings continually
at regular intervals to monitor, update, evaluate and improve counter-terrorism strategies.
The SAARC Terrorist Offences Monitoring Desk (STOMD) has been established in Colombo
to collate, analyse and disseminate information about the terrorist incidence, tactics, strategies
and methods. Efforts are being undertaken for further strengthening STOMD.
The Eighth SAARC Summit, (New Delhi May 1995) expressed serious concern on the spread
of terrorism in and outside the region and reiterated their unequivocal condemnation to acts,
methods and practices of terrorism as criminal, It deplored all such acts for their ruinous
impact on life, property, socio-economic development and political stability as well as on
regional and international peace and cooperation. The Summit Leaders reiterated the need for
a constant dialogue and interaction among the concerned agencies of member states.
The Ministers sign the SAARC Regional Convention on Suppression of Terrorism in
Kathmandu in November 1987.

11.3. Saarc Convention On Narcotic Drugs And Psychotropic Substances

The SAARC Convention on Narcotic Drugs and Psychotropic Substances which was signed
in Mal during the Fifth SAARC Summit in November 1990 came into force on 15
September 1993, following ratification by all member states.
The Convention seeks to reinforce and supplement at the regional level, the relevant
international conventions and promote regional cooperation among member states in both
law enforcement and demand reduction.Incorporating the generally accepted principle of
extradition or prosecution consistent with the respective national legislative regimes, the
Convention envisages the widest measures for mutual legal assistance among member states
in investigation, prosecution and judicial proceedings in respect of drug offences. The
implementation of the Convention is monitored by the Technical Committee on Prevention of
Drug Trafficking and Drug Abus, during its annual meetings.

11.4. Agreement On Saarc Preferential Trading Arrangement (SAPTA)

The Agreement on SAPTA was signed by the Ministers of Member States on 11 April 1993
during the Seventh SAARC Summit.
The initiative towards establishing SAPTA was taken during the Sixth SAARC Summit in
Colombo in December 1991. This Agreement is an umbrella framework of rules providing
for step-by-step liberalisation of intra-regional trade. It envisages periodic rounds of trade
negotiations for exchange of trade concessions on tariff, para-tariff and non-tariff measures.

34

SAPTA contains provisions giving Special and Favourable Treatment to the Least Developed
Countries (LDCs) in SAARC region. Additional measures in favour of LDCs are
incorporated in Annex-I of the Agreement. Provisions for safeguard action and balance of
payments measures are also incorporated in the Agreement to protect the interest of Member
States during critical economic circumstances.
An Inter-Governmental Group (IGG) on Trade Liberalisation completed the first round of
trade negotiations at its Sixth Meeting held at the SAARC Secretariat, Kathmandu on 20-21
April 1995. It finalised the Consolidated National Schedules of Concessions which were
approved by the Fifteenth Session of the Council of Ministers held in New Delhi on 30 April
- 1 May 1995. The SAPTA Agreement has since been ratified by Member States and will
enter into force on 7th December 1995. The Committee of Participants has since been
established and will meet in the third quarter of 1996 to review the progress in the
implementation of the SAPTA Agreement.
The Agreement on Preferential Trading Arrangement (SAPTA ) signed in Dhaka on 11 April
1993 has accelerated the process of trade and economic cooperation in the region.

12.

SAARC FUNDS

12.1. South Asian Development Fund (SADF)

In order to establish a South Asian Development Fund, initially a Panel of Experts was
formed under the chairmanship of H.E. Lyonpo Dawa Tshering, the Foreign Minister of
Bhutan. The Panel of Experts consisting of eminent persons from the SAARC Region held
three meetings and the Chairman had exploratory consultations with the potential donors.
Subsequently it was decided to establish an InterGovernmental Group (IGG) on South Asian
Development Fund (SADF) to define the size, structure, resources and operational modalities
of the proposed Fund and also to examine the relationship of the Fund with the SAARC Fund
for Regional Projects including the possibility of their merger.
A Consultant appointed by the Secretary-General submitted his Report which was considered
by the IGG at its Second Meeting held at the SAARC Secretariat in October 1994.
The Second Meeting of IGG, inter-alia, recommended that a three-window South Asian
Development Fund (SADF) may be established with the merger of the SAARC Fund for
Regional Projects (SFRP), the SAARC Regional Fund (SRF) and a third window for social
development and infrastructure building. This recommendation has been since approved by
the Fifteenth Session of the Council of Ministers (New Delhi, 1995). The Council approved
the recommendation of the Standing Committee which included convening a meeting of the
Group of Experts consisting of the Members of the Council of SAARC Fund for Regional
Projects (CSFRP) and National Focal Points of Member States at the SAARC Secretariat, to
finalise the terms of reference, operational modalities and composition of the Governing
35

Board of the South Asian Development Fund (SADF). The Meeting of the Expert Group held
at the SAARC Secretariat (September 1995) finalised the recommendations for consideration
of the Sixteenth Session of the Council of Ministers.

12.2. Saarc-Japan Special Fund

SAARC-Japan Special Fund has been established, under which the Government of Japan has
agreed to finance activities/programmes relating to SAARC region. Letters were exchanged
between the Secretary-General and the Japanese Ambassador in Kathmandu on 27
September, 1993 confirming the acceptance of the Memorandum on the Guidelines for the
Fund.
The Fund established entirely with contribution of the Government of Japan consists of two
components. The allocation under Component-I is to be used to finance selected
programmes/activities identified and managed by the member states. Component-II would be
for the programmes/activities identified and managed by the Government of Japan.

12.3. Saarc Fund For Regional Projects (SFRP)

The SFRP was established in 1991 to make available credit on easy terms for the
identification and development of projects having a regional character. The Fund is managed
by the Council for SAARC Fund for Regional Projects (CSFRP) comprising representatives
of the Development Financing Institutions of SAARC member states. So far feasibility
studies for thirteen projects have been undertaken which cover hydropower, sericulture, dairy
products, medicinal cultivation and herbs etc.

12.4. Saarc Regional Fund (SRF)

The SRF aims at expediting the implementation of approved projects/programmes under IPA
which remain unimplemented due to financial constraints. It would be administered by
member states themselves. The sources of the Fund would be grants from donor countries,
international agencies and organisations, and private sector donations. The
projects/programmes that would qualify for funding are programme costs of SAARC
Regional Institutions; costs of programme component of networking arrangements;
development projects of scientific and technical in nature; projects/programmes involving
high costs; long-term training programmes and projects/programmes of any other nature to be
identified in future by member states.

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13. COOPERATION WITH INTERNATIONAL AND REGIONAL

ORGANISATIONS
13.1. UNCTAD
SAARC-UNCTAD Memorandum of Understanding on the Trade Analysis and Information
System (TRAINS) was signed in February 1993. The global aim of TRAINS is to increase
transparency in international trading conditions and thus facilitate trade. This was the first
Agreement of cooperation to be signed by SAARC with an international organisation. Under
this Agreement, UNCTAD provides the SAARC Secretariat, on a regular basis, an updated
copy of TRAINS CD-ROM containing latest data on trade control measures prevailing in
developed and developing countries. The SAARC Secretariat in turn updates trade control
measures prevailing in the SAARC member states on a regular basis and forwards the same
to UNCTAD Secretariat, on computer floppies for incorporation in the updated versions of
TRAINS CD-ROM.

13.2. ESCAP
A Framework Agreement for cooperation between SAARC and ESCAP was signed in
February 1994. The Agreement provides for cooperation on development issues through joint
studies, workshops and seminars and exchange of information and documentation in poverty
alleviation, human resource development, trade promotion, foreign direct investment,
environmental protection and prevention of drug trafficking, infrastructure development etc.
SAARC Secretary-General has attended two Consultative Meetings of the Executive Heads
of Subregional Organizations in Asia and the Pacific and ESCAP (Bangkok 1994 and Jakarta
37

195). The Secretary-General also participated in the Meeting of Eminent Persons on Human
Resources Development organised by ESCAP Secretariat in Bangkok (November 1994).

13.3. UNICEF
A Cooperation Agreement between SAARC and UNICEF, was signed on 10 December 1993.
The Agreement envisages cooperation in implementing the relevant SAARC decisions
relating to Children through an annual agenda which include joint studies, exchange of
documentation and monitoring of implementation.
In pursuance of the Cooperation Agreement, the SAARC Secretariat and the UNICEF
Regional Office for South Asia have been holding regular consultations, which have covered
progress in the implementation of Summit directives on Children and the recommendations
of the Council of Ministers, Standing Committee and the relevant Technical Committees. The
consultations focus on all child related issues including the Annual Review of the Situation of
Children in the SAARC Countries; implementation of the Colombo Resolution on Children;
Plan of Action to mark 1991-2000 A.D. as the SAARC Decade of the Girl Child; the serious
threat faced by Girl Children in Especially Difficult Circumstances (GCEDC); mid-decade
goals on Children emanating from the World Summit for Children (1990) and certain aspects
of the United Nations Convention on the Rights of the Child. The regular interaction between
SAARC and UNICEF has facilitated better understanding of problems faced by Children in
South Asia and regional policies and strategies to meet these challenges.

13.4. APT
A Memorandum of Understanding (MOU) was signed by SAARC Secretary-General and
Executive Director of Asia Pacific Telecommunity (APT) on February 4 1994. The MOU
envisages cooperation between the two organisations to promote the growth of
telecommunications in order to accelerate economic and social development in the region.
SAARC and APT will exchange information, publications and documents on their respective
activities in this field. They will also exchange technical and operational details of plans for
improvement of national, regional and international telecommunications network.
Collaboration is also envisaged in planning and development of networks, transfer of
technology, promoting international standards, development of human resources and
application of telecommunications in sectors such as health, education, environment,
transport, and tourism.

13.5. UNDP
A Memorandum of Understanding (MOU) between SAARC and UNDP was signed by the
SAARC Secretary-General and Administrator of UNDP in July 1995. The MOU embodies a
general agreement for broad-based collaboration with the aims and purposes of promoting
sustainable human development for attaining poverty elimination, preservation and protection
of environment, regeneration of natural resources, employment creation, and the goals of
women in development; undertakes periodic consultation for joint activities; publishing
studies on priority concerns and exchanging relevant reports.

13.6. UNDCP

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SAARC Secretary-General and United Nations International Drug Control Programme

(UNDCP) Executive Director signed an MOU on 18 August 1995 to coordinate their efforts
in combating drug trafficking and drug abuse in the region. The Memorandum envisages
mutual consultation and exchange of information between the two organisations. In addition,
the two organisations have agreed to seek each other's technical cooperation in pursuing their
respective drug control activities in areas of drug supply and demand reduction to assist in the
development and implementation of such activities as human resource development;
improving regional cooperation on drug intelligence through the SAARC Drug Offences
Monitoring Desk; legislation; financial investigation; money laundering; precursor control;
the establishment of a networking arrangement among existing institutions in drug abuse
prevention etc.

13.7. Colombo Plan

SAARC has also entered into cooperation arrangement with the Colombo Plan Bureau for
promotion on the Role of SAARC NGOs in anti-narcotic activities. In this context,
representative of NGOs from seven countries attended a meeting of the SAARC Forum on
the role of NGOs in Drug Demand Reducation in Dhaka on 10-13 April 1995.
Efforts are also underway to establish a working relationship between the SAARC Secretariat
and the Colombo Plan Bureau on training facilities in the region.

14 . ECONOMIC RELATIONSHIP AMONG SAARC NATIONS

The South Asian Association for Regional Cooperation or SAARC was created to promote
economic integrity and cooperation among 7 South Asian nations namely India, Bangladesh,
Pakistan, Bhutan, Nepal, Maldives, and Sri Lanka. The Association was formed in 1985 with
the aim to ensure social and economic development of the member countries. However, over
the years it has been seen that SAARC mainly worked towards development of economic
relationship among the SAARC nations. Attempts are also on to further trade relations with
the member nations of ASEAN (Association of South East Asian Nations) and the European
Union.
In spite of lying in the vicinity of one another, trading activities were restricted among the
SAARC nations. Over the years, there has significant improvement in the trade relations
among the seven SAARC members. The focus has been shifted to get access to the markets
of the other members. Methods have also been devised to attract foreign direct investments to
strengthen economic infrastructures of the SAARC nations. All these initiatives point towards
an improvement in the economic relationship among the 7 South Asian countries.
Despite the sincere attempts of the Association, there are several factors that stand in the way
of economic integrity among the SAARC nations. The clashes between India and the
neighboring countries have prevented the SAARC members to make the most of the
economic benefits derived from the Association. This has prompted the South Asian countries
to go for bilateral trading activities instead of getting involved in multilateral trade
agreements. However, the Association is expected to take more proactive steps to improve the
economic relationship among its members. Besides devising policies for economic
39

integration, SAARC is supposed to function as a medium to facilitate discussions among the

South Asian nations. Seminars and conferences are going to be helpful measures for
promoting cross border trade and investment.
As an aftermath of globalization, Indian government has resorted to open trade policy. The
economic reforms of early 1990s have opened an array of challenges for the Indian
entrepreneurs. The growth rate of the Indian economy was around 7% during the period from
1994-1997. The inflow of foreign fund also recorded substantial increase.
All these resulted from the flexible economic policies adopted by the Indian government. The
economic prosperity of India prompted the other SAARC members to seek resort to
international trade as a platform for economic growth. Both Sri Lanka and Nepal have shown
their interests to enhance intra regional trade. Bangladesh is also following the same trend.
With the increased intra regional trading activities, the economic relationship among the
SAARC nations is bound to be stronger in future.

15. SAARC AND INDIA

15.1. Indias Contribution Towards Saarc
India has cooperated actively in SAARC activities and vigorously promoted trade and other
forms of economic, social and technical cooperation within SAARC.
India also actively supports people-to-people initiatives aimed at fostering greater mutual
understanding and goodwill in the region.
India is the only SAARC member that shares land borders with four members and sea
borders with two. No other SAARC country shares a common border with each other.
In terms of trade, commerce, investments etc. India is a source of potential investments and
technology, and a major market for products from all other SAARC members.
One of the foremost challenges facing South Asia is the issue of poverty eradication. At the
Twelfth Summit held in Islamabad in January 2004, India offered to contribute US$ 100
million for Poverty Alleviation projects in SAARC countries (outside India). India has
additionally offered to finance feasibility projects in SAARC countries in this regard.
India has granted the highest number of tariff concessions to all SAARC MEMBERS.

15.2. Effects On Indo-Pak Relations

40

SAARC has failed to resolve disputes between India and Pakistan (especially the Kashmir
Issue). The progress of SAARC was limited for some years due to the absence of cordial
relationship between India and Pakistan.
SAARC'S inability to play a crucial role in integrating South Asia is often credited to the
political and military rivalry between India and Pakistan.
However during Prime Minister Atal Bihari Vajpayees visit to Islamabad (for the 12th
SAARC summit) Pakistan persuaded India to resume talks about maintenance of peace and
the stalled composite dialogue, while India received assurances that Pakistan would not allow
its territory to be a hub for terrorist activities. The composite dialogue had then started.
At present Indias export to Pakistan are limited. For example in the year 2001-2002 Indias
total exports were $44 billion out of which a mere $204 million went to Pakistan. On the
other hand, Indias exports to Bangladesh stood at $ 930 million and exports to Sri Lanka at
$662 million.
Pakistan has to pay heavy price for importing goods from other countries except India.
Indias exports suffer due to non availability of neighbouring market.
Along with India and Pakistan, other countries of SAARC are likely to get many benefits
because of improved INDO PAK relations. In the recent Indo-Pak dialogue process, there
were no winners and losers. The real winners were the people of South Asia.

15.3. Saarc: A Failure For India

SAARC had failed to resolve conflicts between India and Pakistan. There is discontent still
between both the countries.
SAARC has yet to become an effective regional organization, largely because of mutual
distrust between India and its neighbours.
Also India's lukewarm support for SAARC stems from the concern that its neighbours might
coalesce against it to the detriment of Indian interests.
The reluctance of India and other South Asian countries to turn SAARC into a forum for
resolving major regional disputes hampers SAARCS ability to deal with many of South
Asia's economic and political problems

15.4. Co-Operation Troubles Between India And Saarc Members

SAARC is structured in a way that often makes regional cooperation difficult. Thomas
Thornton argues that in regional organizations it is difficult for countries to establish
balanced relations when one has a significant advantage in power over the other states. In
the case of SAARC, India is the most powerful country in terms of its economic might,
military power and international influence. Thus, Indias potential as a regional hegemony
gives SAARC a unique dynamic compared to an organization such as ASEAN. Pakistan was
initially reluctant to join SAARC due to fears of SAARC succumbing to Indian hegemony.
Indeed, if India does take a prominent role in SAARC, it could further fears that India will
use SAARC for hegemonic purposes. While the smaller states in South Asia recognize that
41

they will need Indias help to facilitate faster economic growth, they are reluctant to work
with India, fearing that such cooperation will admit Indian dominance in SAARC.
Aside from a few overtures to its neighbours, India has done little to allay the fears of other
South Asian states. The core of these fears is likely derived from the displays of Indias power
by New Delhi in the past. Realizing its considerable advantage in military and economic
power, India has consistently acted in an arrogant and uncompromising manner with its
neighbours. Bangladesh is afraid of India exploiting its geographical position to redirect
water flows vital to Bangladeshi agricultural production. Nepal and Bhutan are still worried
about Indias control over their world trade and transit links as their geographical position
will always make them dependent on India. These disputes between India and its neighbuors
have directly affected SAARC.
Namely, disputes between South Asian states have undermined SAARC efforts to promote
regional trade. These disagreements make consensus building and cooperation among
SAARC states complicated. Attempting to promote regional cooperation while doing little to
resolve regional conflicts makes SAARCS mission looks nearly impossible. Moreover,
SAARC has no institutional mechanisms or punishments capable of preventing or fully
resolving a dispute. Two examples illustrate how conflicts in South Asia have proven
detrimental to SAARC.

The first involves Indian intervention in Sri Lanka from 1986-1990. The Indian military
intervention to put down an insurgency by The Liberation Tigers of Tamil E Elam made IndoSri Lankan relations tense during these four years. Subsequently, the apprehension between
India and Sri Lanka was considered a primary reason behind Sri Lankas lukewarm support
for SAARC into economic and social spheres of its member states until relations improved
with India.
A second, more prominent example of a conflict derailing SAARC progress is the IndoPakistani conflict. Pakistan has demanded a resolution to its dispute with India over the
Kashmir Valley before discussing trade relations with New Delhi. Pakistan has enforced this
policy by violating WTO regulation for failing to confer Most Favored Nation (MFN) status
on India.
India has recently attempted to improve its relationship with the rest of South Asia. Under the
Gujral Doctrine established by former Indian Prime Minister I.K Gujral, India signed a 30year water sharing treaty with Bangladesh and a trade and transit treaty with Nepal. India also
joined a sub regional group within SAARC comprising of Bangladesh, Bhutan, Nepal and
India. Despite political impediments to trade, value of goods smuggled from India to Pakistan
via a third party generally totals 250-500 million per year. If trade between the states was
opened, Pakistan would receive cheaper imports due to lower transport costs and the absence
of payments to a middleman. This implies that there is potential for lucrative trade between
India and Pakistan. Moreover, if these two states, arguably the largest powers in SAARC,
pushed for economic cooperation, it is likely that other states will follow their lead.
Therefore, it is not surprising that the Indo-Pakistani dispute over Kashmir is considered a
primary cause of SAARCS impotence.
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Due to these conflicts, the desire for South Asian states to trade with one another has been
limited. By squelching trade between South Asian states, the disagreements between India
and its neighbors have limited the effectiveness of SAARC trading initiatives. The South
Asian Preferential Trading Agreement (SAPTA) signed in December 1995 had SAARC
countries reduce tariffs in certain economic areas to promote intra regional trade. The
proposal was initially met with enthusiasm as India agreed to reduce tariffs in 106 of the 226
fields recommended by SAARC and Pakistan agreed to concessions in 35 fields. This statistic
emphasizes a trend in SAARC India seems gung ho about intra regional cooperation. In
1995, when SAPTA was being implemented, only 3 percent of all South Asian trade was
conducted in the region.
Six years later, the improvements seen in regional trade have been marginal. Indias trade
within South Asia accounts for only 4 percent of its total global trade and Pakistans trade in
the region accounts for merely 3 percent of its overall trade.
Compared to other countries with similar proximities and income levels, intra regional trade
among SAARC states is relatively small. Much of the trade that is conducted in South Asia is
also considered symbolic and generally does not involve goods vital to the economies of the
South Asian states.
Moreover, some states still have high tariff and non-tariff barriers to trade, indicating that the
spirit of free trade does not seem alive in SAARC. However, SAARC is trying to remedy this
problem.
SAARC hopes that the establishment of a South Asian Free Trade Area (SAFTA) by January
1, 2006 will stimulate trade in the region. However, the agreement to establish this free trade
zone will take 10 years of gradual tariff reduction.
For a proposal that has already been delayed, it will take some genuine political cooperation
for the tariff reduction process to run smoothly. Judging from the experience of ASEAN, an
organization with a better track record in producing economic coordination among member
states than SAARC, creating a free trade zone could become difficult. The ASEAN free trade
agreement (AFTA) has been criticized for not producing substantial economic
interdependence among the region. This lack of success results from distrust and
protectionism among its member states. If SAFTA is implemented, its success will depend on
the resolution of conflicts between South Asian statessomething which seems unlikely in
the future.

15.5. Conclusion For Saarc And India

India needs to play a major role in SAARC
India being an important member of the group should initiate steps to ensure that the nations
go beyond the rhetoric and make the Summit meaningful in the future. Creation of Export
Promotion Zones and Special Economic Zones in each SAARC member country as pointed
out by industry bodies will enhance investments between them and will thus encourage intraSAARC investments
The Indian government has to understand that the export-import community needs easier
movement of goods, services, and people within the member nations.
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India should also maintain peace and take proper and appropriate steps to resolve disputes
and solve issues amongst the SAARC members especially with Pakistan.
According to Former Prime Minister Atal Bihari Vajpayee, Countries in the SAARC region
have to make a bold transition from mistrust to trust, from discord to concord and from
tension to peace.

16. FUTURE MEMBERS.

China has shown interest in joining SAARC . While Pakistan & Bangladesh support chinas
candidature ,India strongly opposes it. Indonesia supported by Sri Lanka intends to become a
observer of SAARC.
Myanmar has expressed its desire to become a full time member of SAARC. Myanmars
military regime officially applied for full SAARC membership in May 2008. However, the
application is still being considered and the government is currently restricted to observer
status.
Russia intends to become an observer as well, and is supported by India Iran because of its
strong cultural, economic and political relationships with Afghanistan and Pakistan and has
expressed its desire to become a member of the South Asian organization.

17. ACHIEVEMENTS AND FAILURES OF SAARC

17.1. Achievements
Several factors such as political, economic, security and potentiality of mutual economic
benefit through regionalism seem to have influenced President Ziaur Rahmans thinking
about establishing a regional organization in South Asia. 15 SAARCs existence, however,
has enabled South Asian political leaders to meet regularly and carry on informal discussions
to address their mutual problems. This is no mean achievement given South Asias past
history and low level of interaction among South Asian countries since their independence.
Informal talks among the leaders at regularly held SAARC meetings have led to inter-elite
44

reconciliation on many sensitive issues, producing some noteworthy results in South Asia.
The informal talks between the Indian and Pakistani Prime Ministers at the second SAARC
Summit meeting at Bangalore in November 1986 led to the diffusion of tension between the
two countries on the issue of Indias military exercise, Operation Brasstacks, on the IndoPakistan border, and the India-Sri Lanka talks at the 1987 SAARC foreign ministers meeting
led to their accord on the Tamil problem. As a result of an informal meeting and discussion
between Prime Minister of India and Pakistan, Narasimha Rao and Nawaz Sharif, at Davos
(Switzerland), in 1992, the Pakistani government took action to prevent the move of the
Jammu and Kashmir Liberation Front (JKLF) to cross the ceasefire line in Kashmir later that
year. The Davos meeting was possible because of an earlier informal agreement between the
two leaders at the sixth SAARC Summit meeting at Colombo in December 1991. Given this
utility of SAARC, can the organization grow or expand its role in the coming decades?
The Heads of State or Government during the Ninth SAARC Summit agreed for the first time
that a process of informal political consultations would prove useful in promoting peace,
stability, amity and accelerated socio-economic cooperation in the region. The leaders
reiterated this intent during their Tenth and Eleventh Summits in Colombo and Kathmandu
respectively also.
The Agreement on SAARC Preferential Trading Arrangement (SAPTA) was signed in 1993
and four rounds of trade negotiations have been concluded. With the objective of moving
towards a South Asian Economic Union (SAEU), the Agreement on South Asian Free Trade
Area (SAFTA) was signed during the Twelfth Summit in Islamabad in January 2004. SAFTA
may enter into force by the end of the year 2006. The Association has carried out Regional
Studies on trade, manufactures and services, environment and poverty alleviation, SAFTA
and Customs matters.
Since its inception in 1984 there have also been serious differences among member countries
over the aims and functioning of SAARC.16 Such differences have been pronounced in
verbal bickerings in several SAARC meetings. This is in the face of the fact that closer social,
economic and cultural ties (the espoused ideals of SAARC) are considered the one and only
hope for building regional cooperation efforts in South Asia in the coming years. Indeed,
increasing rationalization of world trade and the fluidity of the emerging global system has
increased trade within each trade bloc and those countries that do not belong to any trade
blocs are likely to be the losers.17 This also provides a strong rationale for sustaining the
SAARC vis--vis future trade prospects of South Asia.
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 intrastate
conflicts between the member countries.

17.2. Failures
17.2.1. Geographical Disparity:
India and Pakistan are the two largest nations of the organization that together tip the
geographical ratio unfavorably away from the smaller member nations, contributing to their
insecurity. India accounts for at least three-fifths of SAARCs area, population, GDP, foreign
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exchange and gold reserves, and armed forces.In 2010, India had to veto the Chinas
promotion from observer to member status in the organization to prevent its marginalization
as was desired by the other members of the organization.

17.2.2. Differences in Political Organization among Member Nations:

Aside from India, no member of the SAARC has a stable, secular democratic system of
government.

17.2.3. Differing Viewpoints and Lack of Consensus and Political Will

among Member Nations:
The members of the organization still gave greater priority to individual interests over
regional cooperation which can be seen in the fact that they all member states prefer bilateral
communication rather than adopting a SAARC-led regional approach. Thus, states cannot
agree on important issues, their resolution, or even their selection in the first place.

17.2.4. Mistrust and Suspicion among Members:

There exists a large paucity of trust among the members of the organization, particularly
India and Pakistan that negatively affects the organizations effectiveness on matters of
regional importance.

17.2.5. Dominance of Conflicts:

The eternal Indo-Pakistan dispute over Kashmir has hugely hindered the SAARC's progress.
In the early years of the SAARC, India had problems with every one of her neighbours,
including Sri Lanka. Indias growing international presence and regional clout thus heightens
the atmosphere of insecurity in the region.
In order to overcome these hurdles, the organization must reinvent itself and aim at projecting
a united and collective front to the rest of the world. Member nations must respect and prefer
the processes and instruments of the organization over bilateral relations, and reduce
emphasis on purely individual considerations. The SAARC has the potential to be an
effective part of international relations provided it faces its drawbacks and draws on its
strengths.

17.2.6. Policy Of Non-Interference

Article II clearly states, Cooperation within the framework of the Association shall be based
on non-interference in the internal affairs of other States and mutual benefit. It strictly
limits the member nations ability to push an agenda if there is any opposition . The biggest
example of the stagnation was during the Kargil War (1999). SAARC could have taken a
decisive step to resolve the dispute. But it did not. It is one of the numerous incidents of
security violations across the region.
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17.2.7. Political Deadlock

Despite several promises to resolve the political differences among the member states, those
especially between India and Pakistan continue and have stalled progress on many projects
including the South Asia Free Trade Agreement (SAFTA). According to YaswantSinha,
former External Affairs Minister, despite an initiative by former Prime Minister AtalBehari
Vajpayee in 2004 in Islamabad, SAFTA had remained inactive till date because Pakistan
refused to give India an MFN (most favoured nation) status. If operative, it would allow the
free movement of people, goods, services and ideas

18.

CONCLUSION

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 21 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.
The political tensions and conflicts surrounding the countries of a South Asia pose a question
of uncertainty and challenge to the formation of South Asian Union at par with European
Union that would allow free movement of people; common currency and common foreign
and economic policies which ultimately will sow the seeds of peace. In order to achieve the
objectives the SAARC would have to evolve into a full-fledged regional entity that can
cultivate peace in the region. The realization of durable peace and the future of economic
integration through SAARC depend upon the ability and interest of South Asian leaders to
resolve domestic as well as long-standing differences through peaceful deliberations.
SAARC has created more problems than it has solved. This regional organization has failed
to address key issues in South Asia. Member nations have not been able to establish adequate
trust or satisfactory trade agreements as a result of conflicts. SAARC has accomplished little
since its establishment in 1985.

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