SAARC: Structure, Composition, Summits & Achievements | UPSC Notes

The South Asian Association for Regional Cooperation (SAARC) is an organisation of South Asian nations established in 1985 to promote regional cooperation and development. It comprises eight member countries: Afghanistan, Bangladesh, Bhutan, India, the Maldives, Nepal, Pakistan, and Sri Lanka. The primary goals of SAARC are to enhance economic growth, improve living standards, and foster peace and stability in the region through collaborative efforts in areas like trade, education, health, and infrastructure.

The South Asian Association for Regional Cooperation is significant for the UPSC Prelims and GS Paper 2 of the UPSC Mains curriculum. This article will provide all the features and necessary information on SAARC. 

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About SAARC

The South Asian Association for Regional Cooperation (SAARC) was established on 8 December 1985, and its Secretariat was established in Kathmandu, Nepal, on 17 January 1987. SAARC comprises eight member countries: Afghanistan, Bangladesh, Bhutan, India, the Maldives, Nepal, Pakistan, and Sri Lanka. SAARC Heads of State will congregate at yearly summits. The most recent was held in 2014 in Kathmandu. Since then, Nepal has hosted annual casual gatherings of SAARC foreign ministers.

The South Asian Association for Regional Cooperation (SAARC) represents the people of the region's resolve to work together to find mutually conducive answers to their problems.

• The Association's primary objective is to hasten the social and economic development process in member nations by working together in the predetermined areas of cooperation.
• The Principles of SAARC are as follows:
  • Support for the ideals of sovereign equality, geographical integrity, political independence, non-interference in the internal affairs of other nations, and mutual benefit underpin cooperation within the framework of the Association.
  • Such collaboration should enhance rather than replace bilateral or multilateral cooperation. It does not engage in discussion of matters that are bilateral or controversial.
  • This coordination has to be in harmony with the responsibilities of the member countries on a bilateral and international level. In the SAARC, there is unanimity at every level.

Objectives of SAARC

SAARC seeks to improve relationships with other developing nations and international and regional groups that share its goals.

• To advance the welfare of South Asians and raise their standard of living.
• To hasten regional economic growth and social and cultural development.
• To encourage and develop South Asian Nations' shared independence.
• To foster active collaboration and support in economics, socialism, culture, technology, and science.
• To contribute to mutual trust, understanding, and respect for one another's concerns.
• To improve collaboration with other emerging nations.
• To improve collaboration across the world on issues of shared interest.
• To collaborate with regional and international groups.

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Areas of Cooperation

• Human Resource Development and Tourism
• Agriculture and Rural Development
• Environment, Natural Disasters and Biotechnology
• Economic, Trade and Finance
• Social Affairs
• Information and Poverty Alleviation
• Energy, Transport, Science and Technology
• Education, Security, Culture and Others

Principal Organs of the Cooperation

Heads of State or Government meet

• The meeting is held at the summit level, most often annually.

Standing Committee of Foreign Sectors

• The Committee offers general oversight, coordination, priorities, resource mobilisation, project authorisation, and funding.

Secretariat

• The SAARC Secretariat came into existence on 16 January 1987 in Kathmandu. It is supposed to facilitate and oversee the execution of SAARC activities, support the association's meetings, and act as a conduit for communication between the association and other international associations.
• The Secretariat has the Secretary-General, seven directors and general services staff.
• The post of the secretary-general is filled based on rotation through appointment of the Council of Ministers to serve a non-renewable term of three years.

SAARC's Specialised Bodies

• SAARC Development Fund (SDF):
  • Its primary focus is on project-based funding in areas of social development like poverty reduction, development, and so on.
  • A Board comprising representatives of the Ministry of Finance of Member States is the governing body of SDF. The Board is governed by the Governing Council of SDF (Finance Ministers of MSs).
• South Asian University
  • South Asian University (SAU) is a global University in India. Graduates and Distinctions of SAU are equivalent to the corresponding Degrees and Certificates of the National Universities/ Institutions.
• South Asian Regional Standards Organisation
  • South Asian Regional Standards Organisation (SARSO) is headquartered in Dhaka, Bangladesh.
  • It was instituted to realise and consequently strengthen the coordination and collaboration of the SAARC member countries in standardisation and conformity assessment. It is to evolve harmonised Standards of the region to enhance intra-regional trade and gain access to the global market.
• SAARC Arbitration Council
  • It is an intergovernmental organisation whose seat is located in Pakistan. It is mandated to provide a legal framework/forum in the region to provide fair and effective resolution of commercial, industrial, trade, banking, investment, and other disputes that may be referred to by the member states and their citizens.

Structure & Composition of SAARC

The SAARC Cooperation is framed on five guiding principles: sovereign equality, territorial integrity and political independence, non-interference in Members' internal affairs, and mutual benefit. The SAARC Member States' bilateral and international interactions are complemented by regional cooperation. There are annual summits of SAARC, and the country hosting the summit is the chair of the association. The SAARC organisation is structured in the following hierarchy:

Summits

The Summit is held every two years and consists of all heads of state/Government of SAARC member nations. It is the highest authority or decision-making authority under SAARC.

Council of Ministers

Every nation is represented by the member countries' Foreign Ministers in the Council. The council is the supreme policy-making organ. It convenes once every two years.

Standing Committee

It consists of the foreign secretaries of the member states. Its key functions are as follows:

• To supervise and coordinate the programmes.
• It is concerned with modes of financing and the determination of inter-sectoral priorities.
• It aims to mobilise regional and external resources and forge new cooperation areas based on sound research.

Technical Committee

The representatives of member states formulate the programs and organise projects in their respective domains. The Technical Committees are responsible for monitoring the implementation of such measures and reporting to the Standing Committee.

Programming Committee

It consists of Heads (JS/DG/Director) of SAARC Divisions of Member States. The functions are given below:

• To support the Standing Committee on different areas relevant to regional project selection, including cost-sharing mechanisms among Member States and external fund mobilisation.
• Work Programme Inter-Sectoral Priority
• Review the Activity Calendar.

Action Committee

The SAARC Charter mandates that Action Committees include member countries involved in implementing programs involving two or more but not all member countries.

Secretariat

The SAARC Secretariat was established in 1987 and commenced work on January 1, 1988. The mandate of the Secretariat is to arrange and oversee the implementation of SAARC activities, serve the meetings of the Association, and act as a channel of communication.

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SAARC Countries

The SAARC Charter was ratified in Dhaka on December 8, 1985, establishing the South Asian Association for Regional Cooperation (SAARC). On January 17, 1987, the Association's Secretariat was established in Kathmandu.

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Functions of SAARC

The SAARC performs the following functions:

• SAARC seeks to advance social advancement, cultural advancement, and economic prosperity throughout South Asia.
• All member countries should pursue SAARC's goal of maintaining regional peace and stability.
• SAARC allows countries to grow naturally while increasing people-to-people interaction and cultural cohesion.
• SAARC ensures enhanced cooperation among its member nations to meet the difficulties posed by rising food and energy costs, recurring calamities, and climate change for geographic, economic, cultural, and other strategic reasons.

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Specialised Bodies of SAARC

The South Asian University, SAARC Development Fund Secretariat, SAARC Arbitration Council, and South Asian Association for Regional Cooperation (SAARC) Regional Standards Organisation are new bodies of SAARC having their unique objectives and organisational set-ups differing from those of the Regional Centres.

SAARC Development Fund (SDF)

It was set up as a comprehensive financing mechanism by the Summit of Heads of State or Government of SAARC members on 13th July 2005, with the primary objective of assisting in project-based cooperation.

South Asian University(SAU)

During the 14th SAARC Summit, the SAARC Member States signed an agreement to establish the South Asian University. The SAU wants to be recognised for the degrees and certificates it grants, which are on par with those awarded by the national universities.

SAARC Regional Standards Organisation (SARSO)

The fifteenth SAARC Summit facilitated the setup of SARSO. It aims to harmonise standards. It fosters cooperation in metrology, accreditation, conformity assessment, etc.

SAARC Arbitration Council (SARCO)

During the Thirteenth Summit, SARCO reached an agreement. It entered into force in 2007. SARCO was established to settle regional disputes peacefully and economically through arbitration.

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Achievements of SAARC

Some of the key successes of SAARC include the following:

• SAARC Agreement on Trade in Services (SATIS): The SAARC Agreement on Trade in Services (SATIS) adheres to the GATS-plus "positive list" strategy for liberalising trade in services.
• Agreement on SAARC Preferential Trading Arrangement (SAPTA): SAPTA was signed by SAARC Foreign Ministers on April 11, 1993, during the 7th SAARC Summit in Dhaka. The SAPTA called for incremental negotiations for better and expanded market access.
• Agreement on South Asian Free Trade Area (SAFTA): The SAFTA was agreed upon during the Twelfth Summit in Islamabad in 2004 to gradually work towards a South Asian Economic Union (SAEU). The agreement asks for greater commercial and economic cooperation.
• SAARC and Environmental Protection: SAARC declared in 1987 that the environment must be urgently focused on. The SAARC Environment Ministers have met from time to time to review progress and promote regional cooperation in the environment, climate change, and natural disasters.

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Importance of SAARC

SAARC has provided a platform to member nations to meet and address significant concerns through bilateral meetings and discussions.

• For instance, when tensions between the two are very high, India and Pakistan would find it difficult to explain a meeting openly. Still, delegates from both nations might join forces under the auspices of SAARC.

SAARC has also achieved moderate success in ratifying accords on the COVID-19 issue, food security, and climate change. SAARC can accomplish much more, but it depends on whether the member countries work together on vital issues.

What is the Significance of SAARC for India?

• Neighbourhood first: The priority is for the neighbours of the country.
• Geo-strategic importance: Can hedge against China (OBOR initiative) by involving Nepal, Bhutan, the Maldives and Sri Lanka in the development process and economic cooperation.
• Regional stability: Through SAARC, the region can be made stable through the creation of mutual trust and peace.
• A global leadership role will allow India to prove its regional leadership by accepting additional duties.
• India's Act East policy is a game changer: Connecting South Asian economies to South East asian will further lead to economic integration and economic prosperity in India, primarily in the Services Sector.

Impact of SAARC on the Indian Economy

The SAARC region's size has expanded to around 7% of the world's GDP in PPP, doubling since 1980. However, this increase in the worldwide share pales compared to China, which increased its global share to 16.5 per cent in 2014, compared to India's 6 per cent.

Indian engagement with SAARC nations is based on a consultative, non-reciprocal, and result-oriented approach, concentrating on delivering benefits like improved infrastructure, increased connectivity, stronger development cooperation in various sectors, security, and expanded people-to-people contacts. Compared to other regional organisations, SAARC has very few accomplishments.

• In its ongoing efforts to resuscitate the SAARC as the premier regional cooperation and economic integration forum, India, the region's biggest economy and most populous country, is an idealist and a pragmatist.
• Starting a university, a food bank, and a disaster management centre might sound like noble causes initially, but they don't help push the local economy forward.

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Challenges Faced by SAARC

The following problems pose issues to the functioning of SAARC:

• The two prominent SAARC members, India and Pakistan, have long been at odds. SAARC is still unable to perform as a sub-regional organisation due to rivalry.
• Border and maritime disputes still plague the area in significant numbers. Unresolved border issues have contributed to problems with terrorism, the refugee crisis, smuggling, and the drug trade. Unsolved difficulties still hamper cooperative relationships.
• Despite its ambitious goals, SAARC has not developed into a regional organisation like the European or African Union.
• Internal conflicts, most notably the war between India and Pakistan, affect its member states.
• Consequently, this has made it more difficult to create comprehensive trade agreements or effectively work together on infrastructure, energy, and security issues.
• Any such summits are unlikely until the problem has been settled, since Pakistan is steadfast in its backing of the Taliban, and the other SAARC nations are reluctant to accept the group.

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Need for the Revival of SAARC

Political, diplomatic, and military tensions threaten the security and stability of the region. They are recurrent hindrances to economic and social progress and threaten human rights and liberty. These elements call for a revival of SAARC to challenge the challenges of the future.

Lack of Political Will

• The South Asian countries' bilateral issues result in political disputes that tend to escalate in the operations of SAARC.
• When regional power politics are maintained, wars among states break out. There is a lack of political will; all these factors affect development and progress.

Indo-Pak Rivalry

• The nuclear powers of the Indian subcontinent have had a volatile and hostile environment since the end of the British administration in Asia in 1947. As a result, four major conflicts occurred in the years 1947, 1965, 1971, and 1999.
• Persistent cross-border terrorist strikes from Pakistani territory have disrupted peace talks between India and Pakistan.

Kashmir Dispute

• The main disagreement between India and Pakistan is Kashmir, an unfinished agenda for Pakistan since 1947.
• This issue has remained a significant concern for countless border clashes and instability.

Terrorism

• The conflicts between India and Pakistan have evolved into extremism and terrorism, providing a platform for non-state actors to undermine the human fabric.
• There is a lack of a shared comprehensive approach and plan to combat terrorism, which has emerged owing to ideological differences.

Water Disputes

• In addition to the boundary and territory issue, water allocation among the countries fuels interstate conflict and exacerbates tensions.
• There are water issues not just between India and Pakistan but also between Bangladesh and India, India and Nepal, and even Afghanistan and Pakistan.

Lack of Economic Integration

• SAFTA has failed to attain success due to ongoing tensions and icy Indo-Pak ties.
• However, because of a lack of interdependence, SAARC nations have not satisfied the world's tremendous market demand across different sectors such as industry, services such as hospitality and information technology, agriculture, and health, resulting in market exploitation by China and other global market players.

Pro-active Chinese approach

• India's capability to economically establish itself in the South Asian region has suffered due to China's aggressive strategy and follow-through market acquisition in Pakistan, Bangladesh, and Sri Lanka.

Recent Developments in Afghanistan and Pakistan

• Afghanistan's emerging socioeconomic climate is likely to develop into a stage of starvation, a deficiency in medicines, and ensuing paucity and pain.
• Pakistan's ongoing economic crisis, ongoing listing on the FATF grey list, and restricted financial aid from Islamic and Western countries could worsen a disastrous humanitarian tragedy in the future.

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