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A Brief Historyof

South Asia Associationof Regional Cooperation

(SAARC)

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A Brief History of South Asia Associationof Regional Cooperation (SAARC)

by Surabhi Sinha Mathur

Edition: July 2008Published by

Vikas Adhyayan Kendra (VAK) established in 1981, is a secularvoluntary organisation engaged in the study and research ofcontemporary social issues. Geographically, VAK’s activities areoriented towards Western India, viz., Maharashtra, Gujarat &Goa.

Vikas Adhyayan Kendra (VAK)D-1, Shivdham, 62 Link RoadMalad West, Mumbai 400 064, INDIAPh: 2882 28 50 / 2889 86 62Fax: 2889 89 41Email: vak@bom3.vsnl.net.inWebsite: www.vakindia.org

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A Brief Historyof the

South Asia Associationof Regional Cooperation

(SAARC)

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A Brief History of SAARC

Introduction: South Asia

South Asia occupies a prominent place in global politics today– it being a tumultuous region with a common culturalbackground and a shared political experience. It is one ofthe most complex regions in the world with its multi-ethnicsocieties, internal divisions along linguistic, regional,communal and sectarian lines. These factors play animportant part in creating the differences and uniting theregion in the same breath. One can therefore say that theethnic or communal dimension of South Asian conflicts iswell known.

It is an irrefutable fact that militarism is incompatible withdemocracy and makes possible the aggressive dominationon society. Militarization enforces a strict hierarchicalrelationship between the State and Civil Society, privilegingthe military over the civilians, focusing on masculine notionsof honour leading to a decline in democratic institutions andthe rise in national security laws and ultimately leading tothe erosion of human rights. It leads to stringent laws,curtailing human rights and liberal space. The UnitedNation efforts as being an accountable mechanism aresubverted to suit Western Power and their designs. SouthAsia now sees a new form of militarism in the region, led bythe United States of America and its allies as ‘War on Terror’.We now see rising militarism commensurate rise in militancyand resultant strangulation of the democratic principles inthe region. This has resulted in causing disillusionmentamongst the South Asian people. Afghanistan, Pakistan,

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India and Sri Lanka have been the fertile grounds for theirpower games. The deployment of the US Marines in theguise of post-tsunami humanitarian work places Americanwar tactics in a new global context. The massive $504 billiondefence budget of the US was used to impose theirimperialistic designs on these South Asian Nations-particularly Afghanistan and Pakistan. People’s aspirationshave short shrift in the process of the US wanting to capturevital resources and strategic areas in competition with China

In Sri Lanka majoritarian politics and competitivechauvinism has played a significant role in alienating theTamil Minority. The shift in the demand of autonomy tosovereignty by the Tamils is a glaring example of how theexisting situation is allowed to aggravate throughmajoritarian myopic politics and policies. Nepal witnessed aresistance movement that led to the people’s victory andemphasized the people’s role in the democratic process ofthat country. In Bangladesh the democratic regime indulgedinto corruption and nepotism, which created an environmentof disillusionment that helped in swelling the ranks offundamentalist and extremist forces, giving legitimacy tothe military take-over. Burma has been in the grip ofmilitary dictatorship, disbanding the legitimatedemocratically elected government. The leaders of theNational League for Democracy (NLD) including Aung SuiKei have been incarcerated in the process. Violence shownagainst the monks demonstrating against people’s inimicalpolicy was brutally crushed. Pakistan is seen moving towardsa restoration of democracy with the recent elections. Theextremist groups who nurtured the military regime fordecades have seen a rebound. Their notion of having astranglehold in Afghanistan has boomeranged and now itis essential that peace and stability be maintained in boththe countries, thus leading to peace in the region.

In the words of Chomsky, terrorism has a new definitionand this is masked by globalization. Neo liberal regimes haveundermined the State’s abilities and welfare to protect thelives of the people. It brings about violence through structural

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reforms and the ensuing relationship between the state,market, politics and economics has tilted in favour of thecorporate world. On the one hand globalization broughtunparalleled catastrophe, promotes inequality, unrest andinequity in all spheres of life and on the other sideglobalization also rules the means to wage war by protectingand promoting the military industries. For instance, Burmawas known as a land of high quality teak, abundant naturalresources and highly fertile Irrawady basin. Those resourcesare being used to prop up the repressive military regime.

SAARC

The South Asia Association of Regional Cooperation(SAARC) comprises the eight countries of South Asia, i.e.Afghanistan, Bangladesh, Bhutan, India, The Maldives,Nepal, Pakistan and Sri Lanka. It is an association basedon the consciousness that in an increasingly interdependentworld, the objectives of peace, freedom, social justice andeconomic prosperity are best achieved in the South Asianregion by fostering mutual understanding, good neighbourlyrelations and meaningful cooperation among the MemberStates which are bound by ties of history.

Heads of the seven states (at the time Afghanistan was nota member) of South Asia that met in December 1985 officiallylaunched the beginning on the South Asia Association ofRegional Cooperation (SAARC). They signed a Charter ofSAARC and adopted the Dhaka Declaration. President ZiaUr Rahman first conceived the SAARC in May 1980. InApril 1981, the Foreign Secretaries of the seven countriesmet for the time in Colombo. Later in the year in August,the Committee of the Whole met again in Colombo andidentified five broad areas for regional cooperation. InAugust 1983, the SAARC proposal was first accepted in NewDelhi and the framework of SAARC cooperation was decidedto be undertaken in five areas of activity under theIntegrated Programme of Action (IPA) namely Agriculture;Rural Development; Telecommunications; Meteorology;Health and Population Activities. 1

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Later in Thimpu (Bhutan) it was decided that the firstSummit would be held in Dhaka on 7th and 8th December1985. New areas of cooperation were added in the followingyears and are pursued through the Technical Committeeswhich now cover: Agriculture and Rural Development;Health and Population Activities; Women, Youth andChildren; Environment and Forestry, Science andTechnology and Meteorology; Postal Services; Sports, Artand Culture; Transport; and Human Resource Development.Working Groups have also been established in the areas of:Information and Communications Technology (ICT);Biotechnology; Intellectual Property Rights (IPR); Tourism;and Energy.

The Dhaka Declaration, 8th December 1985

The Dhaka Declaration reflects the spirit of cooperation,friendship, trust and mutual understanding with which theheads of the seven nations of Bangladesh, Bhutan, India,The Maldives, Nepal, Pakistan and Sri Lanka came togetherso as to be able to find a solution towards their commonproblems so as to be able to foster an order based on mutualrespect, equity and shared benefits. Through the declarationthe Head of State or Government reaffirmed that theirfundamental goal was to accelerate the process of economicand social development in their respective countries throughthe optimum utilisation of their human and materialresources, so as to promote the welfare and prosperity oftheir peoples and to improve their quality of life. They wereconscious that peace and security was an essentialprerequisite for the realization of this objective. Theyreaffirmed that their fundamental goal was to acceleratethe process of economic and social development in theirrespective countries through the optimum utilization of theirhuman and material resources, so as to promote the welfareand prosperity of their peoples and to improve their qualityof life.

The situation of the South Asian countries is reflected asthe motivation to coming together for regional cooperation.The Declaration states that the countries of South Asia

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constituted one – fifth of humanity and “were faced withthe formidable challenges posed by poverty,underdevelopment, and low levels of production,unemployment and pressure of population compounded byexploitation of the past and other adverse legacies. Theyfelt that, bound as their countries were by many commonvalues rooted in their social, ethnic, cultural and historicaltraditions, regional cooperation provided a logical responseto these problems. They were conscious of their individualand regional strengths, their potential as a huge market,their substantial human and natural resources and thecomplementarities of their economies. They were confidentthat with effective regional cooperation, they could makeoptimum use of these capacities for the benefit of theirpeoples, accelerate the pace of their economic developmentand enhance their national and collective self-reliance. Theywere convinced that their countries, which had madeimportant contributions to the enrichment of humancivilization, could together play their due role in internationalrelations and influence decisions which affected them”.

The Declaration also spoke about strengthening of regionalcooperation in South Asia through greater involvement oftheir peoples. They agreed to increase interaction and furtherpromote people-to-people contracts at various levels amongtheir countries. Creating awareness and public opinion, wasdecided to be the best way to do this.

The Declaration recognises that the quality of life of peoplein South Asia could be improved only in an “atmosphere ofpeace and security. In this context, they expressed concernat the deteriorating international political situation. Theywere alarmed at the unprecedented escalation of arms raceparticularly in its nuclear aspect. They recognized thathumankind today was confronted with the threat of self-extinction arising from a massive accumulation of the mostdestructive weapons ever produced. The arms race intensifiedinternational tension and violated the principles of the UNCharter. The leaders called upon the nuclear weapons-statesfor urgent negotiations for a comprehensive Test Ban Treaty

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leading to the complete cessation of testing, production anddeployment of nuclear weapons. In this connection, theywelcomed the recent meeting between President Reagan andGeneral Secretary Gorbachev in Geneva and expressed thehope that the meeting would have a positive effect oninternational peace and security”.

Lastly, the Declaration discusses the crises in the globaleconomy at the time. Deteriorating economic and socialconditions had seriously retarded developing countries.Sharply falling commodity prices, deterioration in the termsof trade, intensification of protectionist measures, spirallingdebt burden and a decline in the flow of external resources,especially concessional assistance, had caused a serioussetback to the economic development of the developingcountries. These had been compounded by natural disastersand precarious world food security situation affectingdeveloping countries. They also expressed concern over thediminishing capacity of international financial and technicalinstitutions to respond effectively to the needs of thedisadvantaged and poorer countries and regretted that thespirit of multilateral cooperation had begun to falter andweaken. This was particularly disturbing in the face ofincreased interdependence of developed and developingcountries and the fact that economic revival of North wasclosely linked to economic progress in South. They believedthat developments during the past decades had clearlydemonstrated the structural imbalances and inequitiesinherent in the existing international economic system andits inadequacy to deal with problems of development.

The SAARC Charter

The Declaration also led to signing of Charter of the SouthAsian Association for Regional Cooperation to beratified by all the member states. The Charter lays downthe following statutes:

1. Desirous of promoting peace, stability, amity andprogress in the region through strict adherence tothe principles of the United Nations Charter and Non-

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Alignment, particularly respect for the principles ofsovereign equality, territorial integrity, nationalindependence, non-use of force and non interferencein the internal affairs of other States and peacefulsettlement of all disputes.

2. Conscious that in an increasingly interdependentworld, the objectives of peace, freedom, social justiceand economic prosperity are best achieved in theSouth Asian region by fostering mutualunderstanding, good neighbourly relations andmeaningful cooperation among the Member Stateswhich are bound by ties of history and culture;

3. Aware of the common problems, interests andaspirations of the peoples of South Asia and the needfor joint action and enhanced cooperation within theirrespective political and economic systems and culturaltraditions

4. Convinced that regional cooperation among thecountries of South Asia is mutually beneficial,desirable and necessary for promoting the welfareand improving the quality of life of the peoples ofthe region;

5. Convinced further that economic, social andtechnical cooperation among the countries of SouthAsia would contribute significantly to national andcollective self reliance

6. Recognising that increased cooperation, contacts andexchanges among the countries of the region willcontribute significantly to national and collective selfreliance;

7. Recalling the Declaration signed by their ForeignMinisters in New Delhi on August 2, 1983 andnoting the progress achieved in regional cooperation;

8. Reaffirming their determination to promote suchcooperation within an institutional framework.

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Objectives of SAARC

a. To promote the welfare of the peoples of South Asiaand to improve their quality of life

b. To accelerate economic growth, social progress andcultural development in the region and to provideall individuals the opportunity to live in dignity andto realise their full potential

c. To promote and strengthen collective self relianceamong the countries of South Asia

d. To contribute to mutual trust, understanding andappreciation of one another’s problems

e. To promote active collaboration and mutualassistance in the economic, social, cultural, technicaland scientific fields

f. To strengthen cooperation with other developingcountries

g. To strengthen cooperation among themselves ininternational forums on matters of common interests;and

h. To cooperate with international and regionalorganisations with similar aims and purposes

Principles of SAARC

a. Cooperation within the framework of the Associationshall be based on respect for the principles ofsovereign equality, territorial integrity, politicalindependence, non interference in the internalaffairs of other States and mutual benefit;

b. Such cooperation shall not be a substitute forbilateral and multilateral cooperation but shallcomplement them

c. Such cooperation shall not be inconsistent withbilateral and multilateral obligations

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The Administrative Functioning of the SAARC

The SAARC is made up of the Heads of member states, theirForeign Ministers, a Council of Ministers, a StandingCommittee, Technical Committees, Action Committees andmore importantly a Secretariat. It has been decided thatthe Heads of States shall meet once a year or more often asand when considered necessary by the Member States. Thesemeetings are what we know as the SAARC Summits.

The financial arrangements for the functioning of theSAARC depend on the contributions by the member statesthat in turn make provision in their national budgets. Thesefunds contribute to the Secretariat budget and that of theregional institutions too. The financial provisions made, areannounced annually at the meeting of the StandingCommittee. The annual budget of the Secretariat, both forcapital as well as recurrent expenditure, is shared by memberstates on the basis of an agreed formula. A minimum of40% of the institutional cost of regional institutions is borneby the respective host governments and the balance isshared by all member states, on the basis of an agreedformula.

The Foreign Ministers constitute the Council of Ministersthat meets twice a year and have the following functions:

Formulation of the policies of the Association

Review of the progress of cooperation under theAssociation

Decision on new areas of cooperation

Establishment of additional mechanism under theAssociation as demanded necessary

Decision on other matters of general interest to theAssociation

The Foreign Secretaries of the Member States comprise theStanding Committee and meets as often as deemednecessary. The Committee also submits periodic reports tothe Council of Ministers and makes reference to it as and

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when necessary for decisions on policy matters. Theirfunctions are as follows:

Overall monitoring and coordination of program ofcooperation

Approval of projects and programmes, and themodalities of their financing

Determination of inter sectoral priorities

Mobilisation of regional and external resources

Identification of new areas of cooperation based onappropriate studies

Representatives of the member states comprise theTechnical Committee and are responsible theimplementation, coordination and monitoring of theprogrammes in their respective areas of cooperation. TheTechnical Committee is required to submit reportsperiodically to the Standing Committee. The Chairmanshipof the Technical Committee shall normally rotate amongmember states in alphabetical order every two years. Theyhave the following terms of reference:

Determination of the potential and the scope ofregional cooperation in agreed areas

Formulation of programmes and preparation ofprojects

Determination of financial implications of sectoralprogrammes

Formulation of recommendations regardingapportionment of costs

Implementation and coordination of sectoralprogrammes

Monitoring of progress in implementation

Further the Technical Committee can, inter-alia; use thefollowing mechanisms and modalities, if and when considerednecessary:

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Meetings of heads of national technical agencies

Meetings of experts in specific fields

Contact amongst recognised centres of excellence inthe region

The Action Committee is set up by the StandingCommittee comprising member states concerned withimplementation of projects involving more than two but notall member states.

The SAARC’s Integrated Programme of Action (IPA)

The Integrated Programme of Action (IPA) is a keycomponent of the SAARC process and is linked to theSAARC Social Charter. The various areas of cooperationthat have been outlined by the SAARC (twelve in number)are organised by the Technical Committee and was firstvisualised in 1992. The Social Charter, though enactedrather late, came about in 1996 and these together worktowards the rationalisation of all SAARC areas ofpartnership.

The Tenth Summit (Colombo, July 1996), while reviewingthe progress made in the social sector, determined the needto develop, beyond national plans of action, a regionaldimension of action including a specific role for the SAARCwith a view to speeding up social development in the region.It, therefore decided to adopt a Social Charterincorporating a broad range of targets to be achieved acrossthe region in the areas of poverty eradication, populationstabilization, empowerment of women, youth mobilisation,human resource development, promotion of health andnutrition, and protection of children. All the leaders signedthe Social Charter during the Twelfth Summit (Islamabad,January 2004) and the provisions laid down in the Charterhave been put into implementation across the region withthe establishment of the National Coordination Committees(NCCs) in all Member states.

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By signing the Social Charter the Member States havereaffirmed their commitments place people at the centre ofdevelopment and direct their economies to meet humanneeds more effectively. In the process it strives to ensureequity among generations, and protecting the integrity andsustainable use of the environment. The Social Charter alsostates that there is integration between economic, culturaland social policies so that they become mutually supportive,and acknowledge the interdependence of public and privatespheres of activity. The Charter promotes participatorygovernance, human dignity, social justice and solidarity atthe national, regional and international levels. The Chartergives importance to the family as the basic unit of societyand acknowledges that it plays a key role in socialdevelopment. These obligations are made towards thechildren and community too, whose development would onlylead to the preserving and strengthening of the family,community, society and nation.

The areas of cooperation under the SAARC’s IPA are alsofurther discussed in the Social Charter. The Social Charterserves as a preamble or the ideals behind the particular areaof cooperation that guides the programs designed andimplemented by the Technical Committee (TC) for the IPA.Following are the areas of cooperation under the SAARC’sIPA:

Areas of Cooperation

1. Agriculture

The first area of cooperation identified for regionalcooperation

SAARC Agricultural Information Centre (SAIC) wasset up in Dhaka in 1988

There is regular exchange of information andinteraction on issues of forestry, fishery, livestock,vaccines, wheat breeding programs, and training inthe related fields.

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Regular meeting of counterpart scientists fornetworking on rice, wheat, oilseeds, horticulture(potato), vegetables and fruits, fisheries, forestry,transfer of technology, livestock, farm machinery andimplements, post harvest technology, agricultureeconomics and policies and soils also takes place.

The 1990s have seen the SAARC focus on geneticengineering and biotechnology for crop and livestockimprovement, agricultural and horticulturaldevelopment.

2. Communications

The TC strives to bring about over-all improvementin the postal services in the region

The TC conducts training, seminars, pertaining tomail accounting, postal management services, postaloperations, and mechanisations of postal operations,agency functions, financial services, customer care,EMS and postal marketing.

The group also aims at providing telecommunicationservices to majority of the rural population and thuspromoting technological and human resourcedevelopment and management

3. Education, Culture and Sports

The Social Charter spells out a deep consciousnessof the fact that education is the cutting edge in thestruggle against eradicating poverty and thepromotion of development and development of theyouth is an imperative to the resurgence of SouthAsian consciousness.

The State parties have re-affirmed to provide freeeducation to all between ages 6-14, investment invocational training, providing youth access toeducation about family planning, HIV/AIDS,sexually transmitted diseases, consumption oftobacco, alcohol and drugs.

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The committee is also engaged in the improvementand expansion of the SAARC Chairs, Fellowshipsand Scholarship Schemes.

The SAARC Ministers for Culture approved a SAARCAgenda for Culture in April 2007; which includespromotion of SAARC Culture online, production ofcultural source materials on South Asia, establishlinkage between culture and other sectors inattaining social and economic development andpromotion of cultural products.

4. Environment and Meteorology

The TC has commissioned various studies such as“Causes and Consequences of Natural Disasters andthe Protection and Preservation of the Environment”,“Greenhouse Effects and Its Impact on the Region”,etc.

The Committee has formulated a collective positionon climate change, which was subsequentlypresented at the Kyoto Conference in December1997.

5. Health, Population Activities and Child Welfare

The TC addresses primary health issues andcommunicable diseases, sharing of informationregarding outbreak of any communicable disease inthe member states, sharing of expertise, etc.

The TC believes that population policies shouldprovide for human centred approach to populationand development and aim towards human survivaland well-being.

The TC looks into safeguarding and protection ofthe child against all forms of abuse and exploitation,children in conflict, disadvantaged children, etc, allhave been addressed in the Charter for attention bythe State Parties.

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The SAARC Tuberculosis Centre was established inKathmandu in 1992. The SAARC MinisterialConference on Children of South Asia in 1996expressed the need to formulate a Convention onRegional Arrangements on the Promotion of ChildWelfare in South Asia and launched the SAARCDecade of the Rights of the Child from 2001 to 2010.

6. Prevention of Drug Trafficking and Drug Abuse

The TC exchanges information, shares nationalexperiences and common programs so as tostrengthen legal systems, financial investigations,countering criminal conspiracies, frequent meetingsat both policy and operational levels, enhancedcontrol of production and use of licit drugs, andprecursors and their essential chemicals.

The SAARC Drug Offences Monitoring Desk hasbeen established in Colombo to collate, analyse anddisseminate information on drug offences.

7. Rural Development

The TC carries out exchange of information andliterature among member states on issues relatingto rural development, preparation of research studieson selected topics, exchanging expertise and sharingtraining facilities within the region.

A Shelter Information Network (SHELTERNET) hasbeen set up.

8. Science and Technology

The TC undertakes activities such as Seminars/Workshops/ Meetings of Experts, TrainingProgrammes, Joint Research Projects, preparationof State-of-the-Art Reports and compilation ofDirectories on Food Technology; Renewable EnergyResources; Pesticides; Cultivation and Processing ofMedicine and Aromatic Plants; Bio-Gas; MineralResources Exploration; Producer Gas; Application of

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Remote Sensing Techniques; Use of OrganicFertilisers; Building Material and HousingTechnologies.

9. Tourism

The TC promotes cooperation in the field of tourismin the region. The TC conducts training programmes,exchange of information, joint promotion, joint-venture investment, intra-regional tourism etc.

It also produces the SAARC Travel Guide andSAARC tourism promotional films on the theme

10. Transport

The TC covers three major segments of transport,i.e. land transport, divided into roadways andrailways; sea transport sub-divided into inlandwaterways and shipping; and air transport.

They exchange data and information, preparationof status papers, compilation of database anddirectories of consultancy centres for transport sector.

Transport has been recognised a vital area inproviding access to products and markets andopening up new areas of productivity, particularlywith the operationalisation of SAFTA

11. Women in Development

Specific issues taken up by the TC include,preparation of a Regional Plan of Action for Women,effective dissemination of technical informationrelating to women in development generated byMember States.

One of the most important features of the work ofthe Technical Committee was designating 1990 asthe SAARC Year of the Girl Child and 1991-2000 asthe SAARC Decade of the Girl Child.

An appraisal of the situation of Girl Children inEspecially Difficult Circumstances (GCEDC) wasalso carried out in December 1996 where key common

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issues and concerns of SAARC Member States wereidentified

A Regional Convention on Combating the Crime ofTrafficking in Women and Children for Prostitutionhas also been discussed.

The Charter promotes universal respect for and observanceand protection of human rights and fundamental freedomsfor all, in particular the right to development; promote theeffective exercise of rights and the discharge ofresponsibilities in a balanced manner at all levels of society;promote gender equity; promote the welfare and interest ofchildren and youth; promote social integration andstrengthen civil society. In the process it also discussesensuring that disadvantaged, marginalised and vulnerablepersons and groups are included in social developmentprocesses. The Charter strives to recognise and supportpeople with diverse cultures, beliefs and traditions in theirpursuit of economic and social development with full respectfor their identity, traditions, forms of social organisation andcultural values.

Last, but not the least, the Charter talks about empoweringwomen, ensuring that the elderly persons lead meaningfuland fulfilling lives, advocating that informationcommunication technology can help in fulfilling socialdevelopment goals and last, strengthen policies andprograms that improve, broaden and ensure the participationof women in all spheres of political, economic, social andcultural life, as equal partners, and improve their access toall resources needed for the full enjoyment of theirfundamental freedoms and other entitlements.

Spaces for People-to-People Interaction

The SAARC has actively promoted a people to peoplecontact in the region to strengthen mutualunderstanding and goodwill among the peoples ofSouth Asia. Under the aegis of SAARC a numberof initiatives were taken:

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SAARC Audio-Visual Exchange (SAVE)P r o g r a m m e

The SAARC Audio Visual Exchange (SAVE)Committee, aimed at increasing the awareness ofSAARC among the peoples of the region anddisseminating information about MemberCountries. SAVE programmes comprise regular TVand Radio Programmes. These are telecast/broadcast on the 1st and 15th of each month,respectively in all SAARC member countries. OtherSAVE programmes includes joint productions onspecific themes such as Environment, DisabledPersons, Youth, Literacy and ParticipatoryGovernance.

SAARC Scheme for Promotion of OrganisedTourism

The SAARC Technical Committee on Tourismaddresses all issues relating to the Scheme. TheScheme is specifically aimed at facilitating intra-regional tourism. It was envisaged that the Schemewould facilitate exchange of organised group toursbetween the member countries, with provision ofconcessional airfare, and arrangement for limitedconvertibility of foreign exchange through a travelvoucher system.

SAARC Chairs, Fellowships and ScholarshipsS c h e m e

The SAARC Chairs, Fellowships and ScholarshipsScheme were instituted with the aim of providingincreased cross-fertilization of ideas throughgreater interaction among students, scholars andacademics in the SAARC Countries. An ExpertGroup reviewed the Scheme recently and itsrecommendations are under consideration by theTechnical Committee on Education, Culture andSports.

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SAARC Youth Volunteers Programme(SYVOP)

The SYVOP is aimed at harnessing the idealism ofYouth for regional cooperation programs. Theprogram enables young people to work in othercountries in the field of agriculture and forestryextension work. The Technical Committee on RuralDevelopment implements SYVOP.

SAARC Visa Exemption Scheme

In order to further promote closer and morefrequent contacts among the peoples of the region,the SAARC Visa Exemption Scheme was initiatedin 1988 and became operational on March 1, 1992.Under the Scheme, visa requirements are waivedfor specified categories of persons to travel withinthe region. Currently, there are 21 categories ofpersons who are entitled to the Scheme. Inaddition, a process of simplification of visaprocedures and requirements is in place to assistbusiness people to accelerate promotion of trade andtourism within the region.

SAARC Youth Awards Scheme (SYAS)

The SAARC Youth Awards Scheme was establishedin 1996. The aim of the Scheme is to provide suitablerecognition to extra-ordinary young talents andencourage the overall development of youth in theregion. An annual award is presented to anoutstanding youth selected from the MemberStates.

South Asian Festivals

South Asian Festivals are held at regular intervalsto promote inter-cultural exchange, understandingand friendship among the artistes of the region.So far, two festivals have been held in India (1992),and Sri Lanka (1996).

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SAARC’s Commitment to Trade Facilitation in theRegion

The Sixth SAARC Summit led to the formulation of an InterGovernmental Group (IGG) to prepare an agreement toestablish a South Asian Preferential Trade Agreement(SAPTA) by 1997. However, the framework was approvedand implemented in December 1995. SAPTA is a preferentialtrading arrangement, which aimed at promoting andsustaining mutual trade and economic cooperation throughexchange of concession within the region through step-by-step approach. SAPTA has been seen as a first step towardsSAFTA. SAPTA took a while to take shape as Pakistan tooktime to give their list of commodities for preferentialtreatment (failed with the dilemma in the context of itsdiscrimination trade policy with respect to India bymaintaining only a positive list of 572 products for importsfrom India, all other products being banned. Under SAPTA,concessions given to one country are to “be extendedunconditionally to all contracting parties”.

The SAPTA is a preferential trading arrangement in whichthe constraints affecting intra-regional trade barriers aresought to be removed through reduction in tariffs, paratariffs, non tariff barriers and by direct trade measures. Thedirect trade measures include those such as “long andmedium term contracts contain import and supplycommitments in respect of specific products, buy-backmanagement, state trading operations and government andpublic procurement”. The different approaches tonegotiations are set out in the Agreement. Negotiatingprocedures include product-by-product basis across-the-board reductions, sectoral basis, or direct trade measures.

At the time the SAPTA was launched, 226 products forpreferential import (India 106 items, Pakistan 35, Sri Lanka3, Maldives 17, Nepal 14, Bangladesh 12, Bhutan 11).Though the entire range of concessions covers only 0.3% oftotal South Asian Trade, it was hoped that the countries inthe region will reap the benefits of India’s huge market andthat would usher in new dynamics in trade relations among

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South Asian countries. It was conceived that this way, inthe long term, there would be a removal of internal barriersand allow the free movement of goods, services, capital andpeople throughout the region. The SAARC leaders believedthat trade and commerce are at the core of cooperation. Theformation of SAARCNET connected chambers of commerceof all states, including country wise exports and importregulations and company profiles. It was hoped that by 2000South Asia free trade area would be established.

By 1998, the agreement had gone into effect and also seena reduction in tariffs. India had agreed to provide tariffconcessions ranging from 25%-50% on 106 items. However,critics argued at the time that the list of items announcedby the various countries showed that SAARC members weremore concerned with protecting their domestic industriesfrom competition rather than increasing trade amongthemselves. The tariff cuts were mostly on low volume goodsfrom the smaller countries of the region. It was only in 2000,after four rounds of discussions that 4700 products out of6000 were agreed upon. Concessions and tariff reductionshave not made any difference to the intra regional trade asthese reductions were negotiated product-by-product (whichis time consuming) and the tariff cuts by one country in themember states may not have been enough. In addition, theproducts that have been put up for trading have essentiallya local content and the countries have a comparativeadvantage in similar products, which leads to reduction inthe trade potential. According to Hirantha (2003)2 duringthe period 1995-2001, SAARC Intra regional trade hasregistered an average of 8.9% growth against 6.2% averagegrowth of total SAARC trade with rest of the world.

An Inter-Governmental Expert Group (IGEG) on transitionfrom SAPTA to South Asian Free Trade Area (SAFTA)comprising experts from the Member Countries was set upas an ad-hoc body by the Committee on EconomicCooperation (CEC) to identify the necessary steps towardsmoving into a free trade area. The IGEG drew up a broadframework of Action Plan for achieving SAFTA, in order to

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give impetus to intra-SAARC trade under the SAPTAAgreement and to promote economic cooperation in theregion. The Tenth SAARC Summit emphasised theimportance of finalising the text of regulatory frameworkby the year 2001 A.D.

The Agreement on South Asian Free Trade Area(SAFTA) was signed on 6 January 2004 during the TwelfthSAARC Summit in Islamabad. The Agreement was enforcedonly in January 2006. Affirming their determination tocreate an inclusive, just and equitable partnership for peace,development and prosperity, the leaders signed the SAFTAand further the process of broadening economic cooperationso as to ensure equitable distribution of benefits of tradeand cater to the special needs of the small and LDC memberstates by providing them special and deferential treatment.Around the time the SAFTA was being discussed and signed,there was talk of creation of a South Asian EconomicUnion, which would complement and assist in theenforcement of SAFTA. The rationale of creation of a SAFTAwas trade liberalization on a preferential basis and furtherenhancing trade through the free movement of goods byremoving barriers to cross-border flow of goods as has beendone in a number of other regions (ASEAN, EU, NAFTA,etc). However, the same rationale is not considered whenone talks of free movement of people in the South Asianregion through visa-free borders. At the Fourteenth SAARCSummit in April 2007, Manmohan Singh (PM of India)announced duty free access to the Indian markets to LDCsof the region without insisting on any reciprocity. This movewas expected to help countries such as Nepal, Bhutan,Bangladesh and Maldives.

The SAFTA has not made too much progress for a numberof reasons. At the very outset, the member states enteredinto a deadlock over major issues – rules of origin, sensitivelists of products, compensation mechanism for revenue lossto the LDCs, setting up of an arbitration council on traderelated issues, etc. All the countries need to have a smallnegative list if the SAFTA is not to be left redundant. There

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should be a firm basis to exclude products and ground rulesshould be laid down and transparent. Secondly, the spateof India’s growth and size of economy in comparison to therest of the countries in the region poses as a cause forconcern. India would have to provide comfort to the smallereconomies that are justifiably worried that their economiesmight be swamped under the onslaught of Indian corporategiants. Third, there is considerable influence that can bemade if SAARC took a collective position in the WTO etc.However, this does not happen as trade interests vary fromcountry to country in the region. An agreement like theSAFTA would be useful, but reasons beyond just economicdo not make it successful. Fourth, relations betweenPakistan and India put a hammer in all proceedings.

Is there a Possibility of a South Asian EconomicUnion?

A Group of Eminent Persons Report had submitted in 1998a Document entitled “SAARC Vision Beyond the Year2000”. This Vision Document put forward a road map forthe achievement of a SAARC Economic Union. It visualizesa Customs Union by 2015, leading to a SAARC EconomicUnion with harmonization of monetary and fiscal policiesby 2020, as well as creation of a common investment areafor facilitating the flow of foreign direct investment.

The SAARC Chamber of Commerce and Industry (SCCI)mooted the idea of a South Asian Economic Union also. Itendeavoured to bring about this union through economiccooperation thus be able to bring about harmonious andhealthy economic relations among the business communitiesof the region. According to Banerjee (2005)3 , “this may bevisualised by 2020 and the process may begin with theCustoms Union. The first step will involve a single marketfor South Asia. This will only be possible after majorupgradation of infrastructure, common standards andarrangements for free movement of capital, labour forspecific economic purposes and other services”. He goes onto state further that such a move will call for substantialmeasures to remove controls and bottlenecks and a

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movement towards a harmonisation of economic policies thatcould slowly (but eventually) result in an erosion of nationalsovereignty. This will obviously lead to dramatic measuresto be undertaken and possibly where civil society needs tobe brought in to initiate macro studies to develop on theseideas.

One of the components of an economic union would be tohave a single currency. The Rupee was touted as the mostcommon one used in the subcontinent other thanBangladesh with the takka. There are diverse opinions onthis. Those in favour of this move, claim that a commoncurrency is a characteristic of strong regional economicintegrations and hence, could be something viable for theSouth Asian region. Secondly, currency unification willeliminate exchange risk and uncertainty and therebypromote inter country trade and investment. Third, theformer will be advanced by the reduction of transaction costsarising from the currency conversions and fourth, such amove could possibly promote political unity amongst theconstituent nations. This is apparently evident in themanner in which Pakistan and India are keen to worktowards greater economic cooperation in the last couple ofyears.

The whole idea of a common currency in the current scenariois a little presumptuous. There is not even a free movementof goods, services and persons living in the region. Indiawould agree to cede its monetary autonomy to a regionalmonetary agency only if it were able to effectively controlthat institution’s policies. In addition, this would not be veryacceptable to the smaller nations in the region. Secondly,intra – SAARC trade and investment is a relatively smallproportion of the total activity of the SAARC countries (lessthan 5% of the total foreign trade of this region), hence, itdoes not make sense for the moment. According to Tripathi(2005), the issues at stake are both theoretical as well aspractical. Having a common currency indicates having acommon monetary policy and that should satisfy theOptimum Currency Area (OCA) which again presupposes

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free mobility of labour and inflexibility of wages in the region.These are both not there at the moment and such a movetowards a monetary integration could lead to a crisis ofadjustment and taking increased economic risks.

It is further elaborated that the constraints that bind themove towards a South Asian Economic Union are many:First, a distinction has to be made between monetarycooperation and monetary integration- the former is aprecursor to the latter. There should be cooperation,harmonisation and integration of monetary policy, spacedout sequentially, to achieve slow but steady gains in thelarger direction. Secondly, monetary cooperation should notbe seen in isolation with the other regional cooperationinitiatives rather in tandem with each other. Hence, financialand monetary cooperation should gel with industrial,investment and trade cooperation and not focus on just tradeas is at the moment. Third, in the entire scheme of regionalcoordination, existing institutional arrangements should beconsolidated and/ or modified according to the region’srequirements and not create totally new ones (for e.g.: useof the Asian Clearing Union, the South Asian DevelopmentFund or SAARCFINANCE, etc).

Towards South Asian Regional Cooperation

The latter half of the 20th Century brought a number ofregional co-operations into being so as to foster peace andsecurity and ultimately prosperity and welfare of the region.The SAARC is a similar regional grouping and identifiedcooperation in economic, commercial, social, infrastructuredevelopment, tourism and energy sectors as a journeytowards an assured future. Nevertheless, the South Asianregion has not seen thus end as yet. One of reason is thatthe SAARC has primarily focussed on economic cooperation,but a regional cooperation needs to focus on the wider fieldand especially so in South Asia as this area is so alike in somany ways. Us South Asians have even questioned theexistence of such grouping and its inefficiency, little realisingthat we are really laughing at ourselves.

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SAARC is barely the sum of its parts- the summits, thesecretariat and meeting of bureaucrats with a nationalagenda and still a possibility of making something of this‘organisation’ so that its can become more dynamic andcreative and promote a South Asia coming together. This is,however, easier said than done. The SAARC represents one-fifth of all humanity and is therefore the largest groupingin terms of human resources. Nevertheless it has not beenable to raise living standards of its people nor condemn abjectpoverty (some of the more simpler objectives to speak of).Areas of cooperation are diverse (and all encompassing) butno real benefits have trickled down to the grass root level ormade any impact on the day-to-day life of South Asians.

Blame is placed on the globalisation process – but is it justthat or is the political rivalry something to contend withtoo? In the inaugural summit in 1985, Sri Lanka’s thenPresident- J. R. Jayewardene said: “We are setting this shipafloat today. There maybe mutiny on board, I hope not.The sea may be stormy but the ship must sail on and enterthe ports of poverty, hunger, unemployment, malnutrition,disease and seek to bring comfort to those who need it”. Morethan twenty years later, truth still rings in his statement.Tumultuous relations between countries and especiallybetween India and its neighbours have postponed summits,delayed discussions and slowed the process.

There is a silver lining among the clouds of South Asia. Theregion is like a honey pot, which attracts flies from alldirections. The liberalisation of economies in South Asia asa region that has a mega market and opportunities to offer-has renewed an interest in the grouping. Bigger economieslike the European Union (EU), USA, Japan, China andKorea and recent entrant Iran have been granted observerstatus. This also points to the regions position on issues withthe WTO. Because of varied interest each country has forits own economy and also vis-à-vis India. it is importantthat the South Asian region have a collective position in theWorld Trade Organisation (WTO) and its negotiations.

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SAARC has come to be an economic bloc, but it has madethe least progress in this area. Even the simple SAPTA orthe convention on terrorism has not been ratified or putinto operation. Yet on the other hand, the social areas ofcooperation, the visual exchange program, visa free travelfor SAARC lawmakers and judges has set new ground inthe region. The people-to-people and politician-to-politiciancontacts SAARC has offered have contributed towards easingtensions and renewing relations between the member states.

Comparisons are made of the SAARC with similar otherregional groupings- the EU and ASEAN most commonly.Nevertheless, one will recall that even the formation of EUwas tumultuous and took over fifty years to crystallise. Onewould also have to remember that SAARC is the only suchregional grouping where four of the seven members areLDCs, three are low-income developing countries, two areland locked and one is a cluster of over thousand islands,two are land locked and hence, sea locked. In addition, mostof all, one single country in terms of both geography andsize is central to the grouping. However, this single countryhas common borders with each of the other six and on theother hand two of the six share a common border betweenthem. These are some facts that affect the geo-politics of theregion and cannot be wished away. They should not impingeon the pace of cooperation; rather it should pave the wayfor peace and cooperation in the area.

Hence, it is not enough to say that the SAARC has norelevance today. It needs to play a more positive andsignificant role. This means that it should not only play aneconomic role, but also lead associations on political and socialroles. Expectations were heavy from all the countries whenit was formed. However, it is not up to the regionalassociations to fulfil all issues of national interests andagendas as this leads towards instability in the region. Indiais seen as a hegemonic power, which lends asymmetry tothe alliance and hence security perceptions of India andmember states differ which leads to mutual suspicion.Nevertheless, the SAARC does manage to diffuse short-term

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misunderstandings, possibly restart, and give directions tooften dead locked official bilateral dialogue.

The SAARC’s social agenda has been evident right from itsinception- children, maternal and child nutrition, provisionof safe drinking water, adequate shelter, subscribing to goalsof universal immunisation and primary education. TheTechnical Committee takes care of these issues in cooperationof all member states and which eminent persons and theirrecommendations from time to time examine. The TechnicalCommittee also links up with non-governmentalorganisations, which in turn pressurise the political class torespond and come out with action plans on the issues.

Summit after summit, the promises made are similar-declarations and statements read the same- confidenceboosting rhetoric. Long winding declarations should be doneaway with and instead leaders should focus on getting onand getting the job done. The countries and theirparliamentarians have to understand that SAARC’simportance lies in how they enhance their national prestige,manage their bilateral relations and thus create a regionalidentity. SAARC helps in this identity, which has a symbolicimportance as well as a practical utility. This symbolic aspecthelps to reduce the asymmetries and in that sense there is apermanent political contribution of SAARC and hence itsrelevance. SAARC should prove to be an alternativestructure for all the countries. It should not become a tool ofhegemony for one single country- but become a forum thatallows the small member countries and its people to establishand develop closer relations among themselves. Last but notthe least, what is severely lacking in the SAARC is the focuson its people- denial of its current regime of operations andenforce the democratic rights its citizens deserve and hencea move towards a people’s union of South Asia.

The People’s SAARC calls for a new political future of theregion, one that would transcend the notion of post colonialnation and national sovereignty. This People’s Union couldcreate possibilities of an alternative political, socio-economicand cultural system in the region, which will do away with

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discrimination of gender, caste, religion, and ethnicity.Identity rivalries can give way to a new identity of “SouthAsia Citizenship”, free movement of people and a new modeof engagement.

Reference:

1. “SAARC Starts To Get Serious”, from the website: http://www.himalmag.com/97jun/saarci.htm

2. Ahmad, Shamsad (2005), “SAARC Fresh RegionalImpulse”, paper presented at the Regional Conference on“New Life Within the SAARC” , Kathmandu, Nepal

3. Banerjee, Dipankar, (2005), “SAARC in the 20th Year-Meeting the challenges of a new year” from the website:http://www.ifa.org.np/document/saarcpapers/dipankar.pdf

4. Baruah, Amit (2005), “SAARC at 20: will the future bedifferent?” from the website: http://www.thehindu.com/2005/11/11/stories/2005111107241100.htm)

5. Hirantha, Seekkuwa Wasan, “From SAPTA to SAFTA: GravityAnalysis of South Asian Free Trade”, from http://www.etsg.org/ETSG2004/Papers/hirantha.pdf

6. http://www.south-asia.com/saarc/newprofile.htm

7. Izzadeen , Ameen (2002), “SAARC still has its relevance”,Reproduced from Daily Mirror of January 4, 2002 on thewebsite: http://www.priu.gov.lk/news_update/features/20020104saarc_relevance.htm)

8. Kemal, A. R. , “SAFTA and Economical Cooperation” fromthe SAFMA website

9. Murthy, Padmaja (undated), “Relevance of SAARC” from thewebsite: http://www.ciaonet.org/olj/sa/sa_00mup01.html

10. Saeed, Dr. Khawaja Amjad (2002), “South Asian EconomicUnion by 2010”, from the website http://www.defencejournal.com/2002/may/economic.htm

11. Sobhan, Rehman, “Road map of South AsianCooperation”, from the SAFMA website

12. Suleri, Abid Qaiyum and Bhaskar Sharma, “The SAFTAmirage”, from the HIMAL website: http://www.himalmag.com/2004/february/opinion_3.htm

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13. The First SAARC Summit Declaration from the SAARCwebsite:

14. The New Delhi Statement on “SAARC 2015 and AsianR e s u r g e n c e ”

15. The SAARC Charter from the website:

16. Tripathi, Rahul, (undated), “Political Economy ofMonetary Cooperation in SAARC”, from the website:

17. Wasi, Nausheen, (2005), “Regional Cooperation in SouthAsia”, publication from South Asia Together at TheInternational Centre, Goa

Footnotes

1 http://www.south-asia.com/saarc/newprofile.htm

2 Hirantha, Seekkuwa Wasan, “From SAPTA to SAFTA: GravityAnalysis of South Asian Free Trade”, from http://www.etsg.org/ETSG2004/Papers/hirantha.pdf

3 Banerjee, Dipankar, (2005), “SAARC in the 20th Year-Meeting the challenges of a new year” from the website:http://www.ifa.org.np/document/saarcpapers/dipankar.pdf