SAARC

SAARC

South Asian Association for Regional Cooperation (SAARC) is the regional intergovernmental organization and geopolitical union of states in South Asia.

SAARC was established with the signing of the SAARC Charter in Dhaka in 1985

Its secretariat is in Kathmandu, Nepal. 

Objective of SAARC – To promote the welfare of the people of South Asia and to improve their quality of life, and to accelerate economic growth, territorial integrity, mutual trust and benefit etc.

Members: Afghanistan (joined in 2005), Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka.

SAARC, as an organisation, reflects the South Asian identity of the countries, historically and contemporarily. It is a naturally made geographical identity. Equally, there is a cultural, linguistic, religious, and culinary affinity that defines South Asia.

Significance of SAARC – General

SAARC is the world’s most densely populated region and one of the most fertile areas.

It comprises 3% of the world’s area, 21% of the world’s population and 3.8% of the global economy.

SAARC countries have the common tradition, dress, food and culture, and political aspects thereby synergizing their actions.

The SAARC nations have common problems and solutions such as poverty, illiteracy, malnutrition, natural disasters, internal conflicts, industrial and technological backwardness, low GDP, and poor socio-economic condition.

These nations can uplift their living standards by creating common areas of development.

Importance of SAARC for India

Regional stability – Nations of SAARC can help in the creation of mutual trust and peace within the region thus promoting stability.

Game-changer for India’s Act East Policy – linking South Asian economies with Southeast Asian will further boost economic integration and prosperity to India mainly in the Services Sector.

Geo-strategic significance – SAARC can engage Nepal, Bhutan, the Maldives, and Sri Lanka in economic cooperation and development process to counter China (OBOR initiative).

Neighbourhood first policy – SAARC gives primacy to the country’s immediate neighbours.

Global leadership role – It offers India a platform to showcase its leadership in the region by taking up extra responsibilities.

However, at present, SAARC appears to be a defunct body even after 36 years of its formation. India’s problems with Pakistan on terrorism, territorial claims, and its role in blocking SAARC initiatives on connectivity and trade are the main reasons behind this dismal situation.

Existing Scenario of SAARC

• The last SAARC summit was held in 2014 and subsequent summits could not be held after 2016 Summit scheduled in Pakistan got cancelled in the backdrop of terrorist attacks in Pathankot and Uri.
• In 2016, India along with Afghanistan, Bangladesh, Bhutan, Maldives, and Sri Lanka declined from participating in the Islamabad SAARC summit.

• In the regional outreach of BRICS summit of 2016, rather than SAARC, BIMSTEC leaders were invited giving message that BIMSTEC (of which Pakistan is not a member), has come to be flaunted as an alternative to SAARC
• In SAARC Ministers Meeting 2019, both countries’ ministers boycotted each other’s speeches

The South Asian region is beset with unsettled territorial disputes, as well as trans-border criminal and subversive activities and cross-border terrorism. The region also remains a theatre for ethnic, cultural, and religious tensions and rivalries besides a current rise in ultra-nationalism.

Failures & Challenges within SAARC

• Poor Economic integration – As per world Bank report, with intra-regional trade at less than 5% of total trade, South Asia is the least integrated region in the world, dwarfed by East Asia’s 35% and Europe’s 60%.
  • Independent India’s choice of closed Economic Model led to a steady deterioration of commercial connectivity with the neighbours.
  • Intra-regional investment is <1% of the region’s overall global investment.
• South Asia Free Trade Agreement (SAFTA) that came into force in 2006 is often highlighted as a prominent outcome of SAARC, but given the presence of sensitive lists, it is yet to be implemented in spirit.
• Internal Tussles – Pakistan’s non-cooperation has stalled some major initiatives under SAARC.
  • For example: SAARC-Motor Vehicles Agreement (MVA) and SAARC satellite project were replaced with BBIN-MVA and South Asia satellite respectively (without Pakistan).
  • Taliban takeover of Afghanistan also pose a concern over its cooperation within SAARC.
• Asymmetry between India and other member countries – They perceive India as “Big Brother” and have been reluctant to implement various agreements under SAARC fearing Indian domination.
• Unstable Financial Positions – SAARC members are financially and economically not very much developed, which creates an uncertain future for this organization.
  • SAARC faces shortage of resources, but countries have been reluctant to increase their contribution.
• Exclusion of Contentious Issues from SAARC Charter – The charter of SAARC itself has some self-imposed anomalies as its charter has the provision of not discussing the contentious and bilateral disputes.
  • On the one hand, it asks for increased cooperation and exchanges and on the other hand, avoids negotiations on bilateral disputes.
• Lack of Strong Infrastructure – South Asian countries share some common features like cheap labour, low incomes, low value-added commodities and comparative advantage in the same commodities as tea, garments etc.
  • The intraregional trade cannot be successful in such conditions where the trade and economic structure and industrial infrastructure is similar

To face such challenges, the South Asian countries must cooperate in a better manner. The European and ASEAN experience is testimony to the contribution of regional cooperation in the economic growth of the countries. 

If India aspires to become a global power, it must keep its neighbourhood peaceful, prosperous, and supportive. In this context, reviving SAARC becomes very important.

Need for Revival of SAARC

• Regional Disconnect – makes it easier for member countries and international agencies, to deal with South Asia as a fragmented group rather than a collective one.
  • This disconnect is a challenge to India’s economic and security interests.
• Impact of Covid-19 – The impact of Covid-19, is a growing distaste for ‘globalisation’ and growing preference for nativism, self-dependence, and localising supply chains.
  • Reviving SAARC is crucial to countering the common challenges brought about by the pandemic.
• Dealing with China – China is sending medicines, personal protective equipment kits, and promising vaccines to most SAARC countries as part of its. “Health Silk Road” initiative
  • Therefore, in dealing with China’s challenge, both at India’s borders and in its neighbourhood, a unified South Asian platform remains India’s most potent countermeasure.
• BIMSTEC cannot replace SAARC for reasons such as lack of a common identity and history among all BIMSTEC members.
  • Moreover, BIMSTEC’s focus is on the Bay of Bengal region, thus making it an inappropriate forum to engage all South Asian nations.
  • SAARC has had 18 summits in the 36 years of its existence, and it has an extensive network of mechanisms, regional centres, and conventions as well as a permanent Secretariat. On the other hand, the BIMSTEC has recently got momentum and is yet to find its role.

Recent Developments

• The Indian PM interacted with the leaders of the SAARC countries through video conference to chart out a common strategy in order to combat COVID-19 in the region.
• The Ministry of External Affairs said India will supply COVID-19 vaccines to SAARC Nations under grant assistance.
• India’s proposal to launch a COVID-19 Emergency Fund was given positive reception by SAARC nations. Within days, all the countries, except Pakistan, contributed to it voluntarily.

Way Forward

• Engaging With Pakistan – China’s incursions in Ladakh doesn’t stop India to attend meetings with the Chinese leadership at the SCO, the Russia-India-China trilateral, the G-20, etc.
  • Therefore, it is misplaced that India applies the same logic, for not engaging with Pakistan. India must understand that engagement with Pakistan is very crucial for the revival of SAARC.
• Application of Gujral Doctrine – In this present context of Covid-19 pandemic, India can apply Gujral doctrine by pursuing Vaccine diplomacy with SAARC countries, whereby India can supply vaccines either free or at affordable costs and counter future pandemics.
• All-of South Asia Approach – South Asian countries need to work as a collective to set common standards and promote a more intra-regional, transnational approach towards health security, food security, and job security.
• Formation of Conflict Conciliation Groups – to resolve the bilateral disputes when all parties to a particular dispute agree to seek SAARC help either to investigate the problem or conduct a fact-finding study.
• Education Diplomacy – India can strengthen its position as an education hub for students from its neighbourhood. This will help to form closer political ties and spread its cultural influence and values to the surrounding region.
• Regional Development – Being the biggest economy in South Asia, India can carry out infrastructure projects to improve connectivity, including the laying of new pipelines, building electricity networks, upgrading port, rail, and airport infrastructure, and reinvigorating people-to-people exchanges.

As the largest regional cooperation organisation, SAARC’s importance in stabilising and effectively transforming the region is becoming increasingly self-evident.

India must find its prism to view its South Asian neighbourhood having a shared future and acting as a force-multiplier for India’s ambitions on the global stage. India should play her role as an equal partner for the stability and cooperation in the region.

Previous Year Questions 

“Increasing cross-border terrorist attacks in India and growing interference in the internal affairs of member-states by Pakistan are not conducive for the future of SAARC (South Asian Association for Regional Cooperation).” Explain with suitable examples. (2016)

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