Economics.docx

South Asian Association For Regional Cooperation

INTRODUCTION

The South Asian Association for Regional Cooperation (SAARC) is organization of South Asian nations, founded in 1985 and dedicated to economic, technological, social, and cultural development emphasizing collective self-reliance. Its seven founding members are Bangladesh, Bhutan, India, the Maldives, Nepal, Pakistan, and Sri Lanka. Afghanistan joined the organization in 2007. Meetings of heads of state are usually scheduled annually; meetings of foreign secretaries, twice annually. Headquarters are in Kathmandu, Nepal.

HISTORY OF SAARC

The South Asian Association for Regional Cooperation (SAARC) is an economic and political organization of eight countries in Southern Asia. In terms of population, its sphere of influence is the largest of any regional organization almost 1.5 billion people, the combined population of its member states.

In the late 1970s, Bangladesh President Ziaur Rahman proposed the creation of a trade bloc consisting of South Asian countries. The Bangladeshi proposal was accepted by India, Pakistan and Sri Lanka during a meeting held in Colombo in 1981. In August 1983, the leaders adopted the Declaration on South Asian Regional Cooperation during a summit which was held in New Delhi. The seven South Asian countries, which also included Nepal, Maldives and Bhutan, agreed on five areas of cooperation.

Afghanistan was added to the regional grouping at the behest of India on November 13, 2005,With the addition of Afghanistan, the total number of member states were raised to eight

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OBJECTIVES OF SAARC

To improve the quality of life and welfare of people of the SAARC member countries.

To develop the region economically, socially and culturally.

To provide the opportunity to the people of the region to live in dignity and to exploit their potentialities.

To enhance the self-reliance of the member countries jointly.

To provide conductive climate for creating and enhancing mutual trust, understanding and application of one another’s issues.

To enhance the cooperation with other developing economies.

To enhance the mutual assistance among the member countries in the areas of economic, social, cultural, scientific and technical fields.

To have unity among the member countries regarding the issues of common interest in the international forums.

To extend cooperation to other trade blocks.

To have unity among member countries.

Acceleration of economic growth, Social progress and cultural development in the region, promotion of active collaboration and mutual assistance in the economic, social, cultural, technical and scientific fields and strengthening of cooperation among the Member States in international forum on matters of common interest 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 inthe region and to provide all individuals the opportunity to live in dignity and to realize their full potentials.

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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 to strengthen cooperation with other developing countries to strengthen cooperation among themselves in international forums matters of common interests; and to cooperate with international and regional organizations with similar aims and purposes.

PRINCIPLES

Cooperation within the framework of the ASSOCIATION shall be based on respect for the principles of sovereign equality, territorial integrity, political independence, non –interference in the internal affairs of other States and mutual benefit.

Such cooperation shall not be a substitute for bilateral and multilateral cooperation but shall complement them.

Such cooperation shall not be inconsistent with bilateral and multilateral obligation

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SAARC SECRETARIAT

The SAARC Secretariat was established in Kathmandu on 16 January 1987 and was inaugurated by Late King Birendra Bir Bikram Shah of Nepal.

It is headed by a Secretary General appointed by the Council of Ministers from Member Countries in alphabetical order for a three-year term. He is assisted by the Professional and the General Services Staff, and also an appropriate number of functional units called Divisions assigned to Directors on deputation from Member States. The Secretariat coordinates and monitors implementation of activities, prepares for and services meetings, and serves as a channel of communication between the Association and its Member States as well as other regional organizations.

The Memorandum of Understanding on the establishment of the Secretariat which was signed by Foreign Ministers of member countries on 17 November 1986 at Bangalore, India contains various clauses concerning the role, structure and administration of the SAARC Secretariat as well as the powers of the Secretary-General. In several recent meetings the heads of state or government of member states of SAARC have taken some important decisions and bold initiatives to strengthen the organisation and to widen and deepen regional co-operation.

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THE SAARC SECRETARIAT AND MEMBER STATES OBSERVE 8 DECEMBER AS THE SAARC CHARTER

Day1.

Secretary General, Directors and Staff of the SAARC Secretariat at the function to celebrated the 25th SAARC Charter Day, 2009 in Kathmandu

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ACTIVITIES OF SECRETARIAT

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REGIONAL CENTERS The SAARC Secretariat is supported by following Regional Centres established in Member States to promote regional cooperation. These Centres are managed by Governing Boards comprising representatives from all the Member States, SAARC Secretary-General and the Ministry of Foreign/External Affairs of the Host Government. The Director of the Centre acts as Member Secretary to the Governing Board which reports to the Programming Committee.

SAARC Agricultural Centre (SAC), Dhaka

SAARC Meteorological Research Centre (SMRC), Dhaka

SAARC Tuberculosis Centre (STC), Kathmandu

SAARC Documentation Centre (SDC), New Delhi

SAARC Human Resources Development Centre (SHRDC), Islamabad

SAARC Coastal Zone Management Centre (SCZMC), Maldives

SAARC Information Centre (SIC), Nepal

SAARC Energy Centre (SEC), Pakistan

SAARC Disaster Management Centre (SDMC), India

SAARC Forestry Centre (SFC), Bhutan

SAARC Cultural Centre (SCC), Sri Lanka

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AREA OF CORPORATION

Agriculture and Rural Development

Health and Population Activities

Women, Youth and Children

Environment and Forestry

Science and Technology and Meteorology

Human Resources Development and

Transport.

ESTABLISHMENT OF HIGH LEVEL WORKING GROUP IN AREAS:

Information and Communications Technology

Biotechnology

Intellectual Property Rights

Tourism

Energy

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ORGANIZATION STRUCTURE OF SAARC

THE COUNCIL

COUNCIL OF MINISTERS

STANDING COMMITTEE

PROGRAMMING COMMITTEE

TECHNICAL COMMITTEE

SECRETARIAT

COUNCIL REPRESENTATIVES

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Represented by the heads of foreign Minister of the member of Government

FUNCTIONS:

The Highest Policy making body

MEETING:

The Council meets once in two years.

COUNCIL OF MINISTERS

REPRESENTATIVES:

Represented by the foreign ministers of member Governments

MEETINGS:

The Council meets twice a year or more times if necessary. Extraordinary session of the Council may be held by agreement among the Member States.

FUNCTION OF COUNCIL OF MINISTER

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STANDING COMMITTEE

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IT REVIEWS THE FUNCTIONINGOF WHOLE BODY SYSTEM

IT FORMULATES POLICIES

DECIDES THE NEW AREAS OF COORDINATION AMONG THE

NATIONS

ESTABLISHMENT OF ANY ADDITIONAL MECHANISM IF ANY

DECIDES THE ISSUES OF GENERAL

INTERESTS TO THE SAARC MEMBER COUNTRIES


REPRESENTATIVES:

It consists of Foreign secretaries of members governments

MEETINGS :

It is uncertain Meeting will be held whenever there is a necessary. The Standing Committee shall submit periodic reports to the Council of Ministers make reference to it as and when necessary for decisions on policy matters.

FUNCTIONS OF STANDING COMMITTEE

PROGRAM COMMITTEE

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FUNCTIONS OF STANDING

COMMITTEE

MOBILIZING CO-OPERATION

WITHIN & OUTSIDE REGION

MONITORING & CO-ORDINATING

PROGRAMMES

FORMULATING

THE MODALITIES FINANCING

DETERMINING INTER-

SECTIORAL PRIORITIES


Representative: It includes the senior officials of the member Governments.

TECHNICAL COMMITTEE

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FUNCTION OF PROGAMMING COMMITTEE

ANALYZING THE REPORTS

AND SUBMITTING

THEM TO THE STANDING

COMMITTEE ALONG WITH

ITS COMPONENETS

SCRUTINISING THE BUDGET OF

THE SECRETARIAT

FINALIZING THE ANNUAL SCHEDULE OF

THE SECRETARIAT

CARRING OUT THE ACTIVITIES

ASSIGNED BY THE STANDING

COMMITTEE


Representative: It comprises the representatives of all countries.-Technical Committees comprising representatives of Member States shall beresponsible for the implementation, coordination and monitoring of the programmes in their respective areas of cooperation. The Technical Committees shall submit periodic reports to the Standing Committee.

The Chairmanship of the Technical Committees shall normally rotate among Member States in alphabetical order every two years.

The Technical Committees may, inter-alia, use the following mechanisms and modalities, if and when considered necessary:

a) meetings of heads of national technical agencies;

b) meetings of experts in specific fields;

c) contact amongst recognised centres of excellence in the region.

FUNCTIONS OF TECHNICAL COMMITTEE

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TECHNICAL COMMITTEES OF SAARC

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FUNCTIONS OF

TECHNICAL

COMMITTEE

Formulating Projects &

programmes in their

respective areas

Monitoring &

Implementing

Projects

Submitting reports to

the Standing

Committee via

the Programme

Committee


ACTION COMMITTEES

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TECNICAL COMMITEES

OF SAARC

AGRICULTURE 2000

COMMUNICATION 2004

ENVIRONMENT 2005

HEALTH &

POPLATION ACTIVITIES 1984

TOURISM &

TRANSPORT 2005

SCIENCE

& TECNOLOGY

1983

RURALDEVELOPMENT 2000


The Standing Committee may set up Action Committees comprising Member States concerned with implementation of projects involving more than two but not all Member States.

FINANCIAL ARRANGEMENTS

The contribution of each Member State towards financing of the activities of the ASSOCIATION shall be voluntary.

Each Technical Committee shall make recommendations for the apportionment of costs of implementing the programmers proposed by it.

In case sufficient financial resources cannot be mobilized within the region for funding activities of the ASSOCIATION, external financing from appropriate sources may be mobilized with the approval of or by the Standing Committee.

GENERAL PROVISIONS Decisions at all levels shall be taken on the basis of unanimity.

Bilateral and contentious issues shall be excluded from the deliberations.

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IMPLEMENTATION OF THE SAARC INTEGRATED PROGRAMME OF ACTION (SIPA)

Agriculture and Rural Development. Communications and Transport. Social Development. Environment, Meteorology and Forestry. Science and Technology. Human Resources Development. Energy.

Genesis

The genesis of the Integrated Programme of Action (IPA) could be traced back to the First Meeting of the Foreign Secretaries of South Asian countries (Colombo, April 21-23. 1981). They agreed that there were several areas in which mutually beneficial regional cooperation could take place.

As an initial step they agreed to establish five study Groups in the fields of Agriculture, Rural Development, Telecommunications, Meteorology and Health and Population Activities.

At their Second Meeting (Kathmandu, Nov.2-4, 1981), the Foreign Secretaries decided to convert the Study Groups into Working Groups with the task of drawing up a comprehensive programmE which would include: exchange of data and information, exchange of experts, training facilities, scholarships etc., organisation of seminars, workshops etc.

The long term programme of action would, inter-alia, include: assessment of needs and resources, preparation of specific projects of a regional nature, and modalities for financing the projects. The Foreign Secretaries also decided to institute studies in further four areas of cooperation: Transport, Postal Services, Scientific and Technological cooperation.

Subsequently, at the Third Meeting of the Foreign Secretaries (Islamabad, Aug. 7-9, 1982) decided to set up a Committee of the Whole to prepare an Integrated Programme of

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Action in the agreed areas of cooperation and to recommend modalities and mechanisms for implementation, coordination, and monitoring of the agreed programme of action, and, to the extent possible, provide indications of the short term component of theIPA

The Meeting of the Committee of the Whole (Colombo, Jan. 10-13, 1983) made a host of useful recommendations regarding activities for short as well as the long term. While noting that National Focal Points (NFPs) had already been established in the respective Ministry of Foreign Affairs, it recommended the establishment of sectoral points.

It recommended the redesignation of the Working Groups as Technical Committees (TCs). As for mechanisms and modalities to be used it pointed to meetings of National Technical Agencies, meetings of experts in specific fields and contacts amongst recognised centres of excellence in the region.

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AIMS AND TERMS OF REFERENCE

The First Meeting of the Foreign Ministers of the seven Member States (New Delhi, August 1-2, 1983) adopted the Declaration on South Asian Regional Cooperation (SARC) and launched the Integrated Programme of Action (IPA) in nine areas of cooperation. On institutional arrangements in respect to Technical Committees, the recommendations of the Committee of the Whole were fully adopted.

The primary aim of the Technical Committee is to help member states to build up or reinforce their national capabilities and undertake coordinated programmes and activities at national and regional levels. The Committee could also examine broad relationships at the policy level between IPA activities and economic and social development in a catalytic, promotional and advisory capacity with a view to incorporate various recommended programmes into the mainstream of development.

According to Article VI of the SAARC Charter, the terms of reference of the Technical Committees are spelt out as viz.

(a) determination of the potential and the scope of regional cooperation in agreed areas.

(b) formulation of programmes of action and preparation of projects.

(c) determination of financial implications of the sectoral programme of action.

(d) formulation of recommendation regarding apportionment of costs.

(e) monitoring of progress in implementation.

This Article also clearly mentions that the Technical Committees shall submit periodic reports to the Standing Committee.7 The Chairmanship of the Technical Committees shall normally rotate among Member States in alphabetical order every two years. The Technical Committees may, inter alia, use the following mechanism and modalities, if and when considered necessary.

a. meetings of heads of national technical agencies

b. meetings of experts in specific fields

c. contact among recognised centres of excellence.

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Over the years, SIPA has undergone several changes. At the time of its establishment in 1983, there were 9 Technical Committees. Subsequently their number increased to 12. Following a review this number was reduced to 11 in 1991. Till the year 1999 the Integrated Programme of Action (IPA) consisted of the following 11 Technical Committees.

- Agriculture (TC1)

- Communication (TC2)

- Education, Culture and Sports (TC3)

- Environment and Meteorology (TC4)

- Health, Population Activities and Child Welfare (TC5)

- Prevention of Drug Trafficking and Drug Abuse (TC6) - Rural Development (TC7)

- Science and Technology (TC8)

- Tourism (TC9)

- Transport (TC10)

- Women in Development (TC11)

THE NEW SIPA SINCE 2000

The Standing Committee in 1996 reviewed the institutional mechanisms and activities of the Association. This included an evaluation of the mandate and functions of the Technical Committees. An Independent Expert Group (IEG) was also set up in 1997 by the Secretary-General which undertook an extensive review of the functioning of the IPA and made wide-ranging recommendations. These were considered by the Standing Committee at its 26th Session [Nuwara Eliya, Sri Lanka, March 1999] which proposed a restructured IPA.8 It was approved by the Council of Ministers at its 21st Session. Under the reconstituted SIPA, the number of Technical Committees has been reduced from 11 to 7 mainly through the amalgamation of different areas covered by the erstwhile Technical Committees thereby eliminating overlapping and duplication. The prime objective of the reorganization has been to enhance clarity in terms of goals and targets of the activities as well as to improve their quality and efficacy. The seven Technical Committees under SIPA now cover:

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1 Agriculture and Rural Development;

2 Communications and Transport;

3 Social Development;

4 Environment, Meteorology and Forestry;

5 Science and Technology;

6 Human Resources Development;

7 Energy

The restructured SIPA became operational from January 2000.

REVIEW OF ACTIVITIES UNDER SAARC

INTEGRATED PROGRAMME OF ACTION (SIPA)

The IPA is the core of the SAARC process. It provided the firm foundation from which regional cooperation could take off. It has been the harbinger of the continuing expansion of SAARC and its future prospect. This review is based on the inputs provided by the Sectoral Focal Points (SFPs), reports of the Chairpersons of the Technical Committees and the views\comments of the National Focal Points (NFPs).

Besides a thorough review of all the technical Committee meetings have been made mainly on the basis of various reports of these Committees.9

Actually only Tourism (TC9) has been dropped and discontinued from the old IPA activities. The rest were amalgamated and combined under different heads. Energy is the only new SIPA activity initiated in 2000. Tourism has been put under the purview of the SAARC Chamber of Commerce and Industry (SCCI) Tourism Council which is an exclusively private sector outfit. However there have been suggestions for the restoration of the TC on Tourism.10

Therefore, before discussing the new SIPA, the progress made by Tourism (TC9) at least till 1999 are mentioned below. This activity does not figure in the SIPA list any more.

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TOURISM (TC9)

TC9 was established in 1991. The SAARC Scheme for Promotion of Organised Tourism (SPOT) initiated in the Second SAARC Summit also came under its purview.11 The activities also included training facilities in the field of Tourism and Hotel Management. An Action Plan was also adopted to promote cooperation through training programmes, exchange of information, joint promotion, joint investment, intra-regional Tourism etc.

A SAARC Food Festival in Dhaka, Familiarisation Tour in Sri Lanka, and Educational Tour in Pakistan and meetings of Expert Groups to discuss the participation in international tourism fairs with common tourism packages were held. The First Ministerial Meeting of Tourism in Colombo in 1997 agreed to promote direct air links between the SAARC capitals. TC8 played significant role in the formation of a Tourism Council by the SAARC Chamber of Commerce and Industry (SCCI). Tourism is vital to all South Asian Economies and requires sustained intensification of action oriented programmes.

The 13th Summit (Dhaka, 2005) decided to launch 2006 as “South Asia Tourism Year." The Second Meeting of the SAARC Tourism Ministers (Cox’s bazaar, 21 May 2006) decided activities on the observance of the Tourism Year in a befitting manner that should also include SAARC Tourism Fair, SAARC Food Festival and Cultural Fair/Exhibitions. This also seems to have taken place in a shallow manner. “The year could have been observed in a much more effective manner by the member states”.

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TECHNICAL COMMITTEE ON AGRICULTURE AND RURAL DEVELOPMENT

As per the reconstituted SIPA, the two Technical Committees on Agriculture and Rural Development were merged into one as the Technical Committee on Agriculture and Rural Development.

TC on Agriculture has played an important role in the setting up of the first regional institute viz., SAARC Agricultural Information Centre (SAIC) which has been entrusted with the compilation of and preparation of inventories of institutes in each Member State.

The exchange of germplasm, breeding materials and prototype of farm tools and equipment has also been undertaken.

Training courses have been conducted in various fields and of late it has also started focusing on genetic engineering and food availability, database on training and facilities.

Regular meetings of the counterpart scientists in the 12 agreed areas of crop/discipline have taken place. Multi-location trials (MLT) of certain crops have enabled the selection of varieties most suitable for breeding programmes.

Two important projects viz. "Promotion of Bio-villages" and "Reaching the Million: Training of Farmers and Farm Women by 2000" have been completed.

TECHNICAL COMMITTEE ON COMMUNICATIONS AND

TRANSPORT

The two erstwhile Technical Committees on Telecommunications and on Transport have been merged as the Technical Committee on Communications and Transport. Broader issues relating to telecommunications and postal services are also being addressed by the Committee. Most of the activities in the Postal Sector are in the form of Seminars, Workshops, Study Tours and training courses which facilitated the exchange of information, professional knowledge and expertise. It approved two long-term activities

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(i) "Introduction of a Higher Professional Degree Course on Management at University Level"

(ii) ii) "Establishment of the SAARC Postal Research and Development Centre" which were subsequently dropped due to financial constraints.

The work programme for the Telecommunications sector was drawn up with a view to bring telecommunications within easy reach of the common man of the region.

TECHNICAL COMMITTEE ON SOCIAL DEVELOPMENT

Under the reconstituted SIPA, the Technical Committee on Social Development subsumes two erstwhile Technical Committees on Health, Population Activities and Child Welfare, and Women in Development. Broader issues relating to drug de-addiction, rehabilitation of drug addicts and demand reduction are also addressed by this Committee.

Over three dozens of status papers have been circulated among the Member States along with a Directory of training programmes in the primary areas of children, population welfare and policy, maternal and child health, primary health care, disabled and handicapped persons, and control and eradication of major diseases in the region.

It played an important role in the establishment of the SAARC Tuberculosis Centre in Kathmandu in 1992. Annual reviews of the situation of children in SAARC countries have been held from 1993 onwards. The pulse polio

immunisation programme has been a great success. In view of the widespread nature of the Severe Acute Respiratory Syndrome (SARS) epidemic, Male Declaration was adopted on a Collective SAARC Response to SARS. The Regional Strategy of HIV/AIDS is also available.

Technical Committee on Environment, Meteorology and Forestry

Under the reconstituted SIPA, the Technical Committee on Environment initiated in 1987 and that on Meteorology were merged into a single Technical Committee on Environment and Meteorology. Forestry is also a part of this Committee.

Two major studies carried out so far are "Greenhouse Effect and its Impact on the Region." and "Study on the Causes and Consequences of Natural

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Disasters and the Preservation and Protection of Environment".The recommendations included

i) Strengthening the environment management infrastructure.

ii) Programme on environmentally sound land and water use planning.

iii) Research and action programme on mountain development in the Himalayan region.

iv) Coastal zone management programme.

v) SAARC forestry and watershed programme.

vi) Pollution control and hazardous wastes management programme.

vii) SAARC cooperative programme on biodiversity management.

viii) People's participation in resource management.

ix) Information exchange on low cost and environmentally sound habitat related technologies.

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The Technical Committee on Science and Technology came into being in 1983. Since then, the Committee has formulated and implemented a variety of regional programmes including organization of expert group meetings, seminars, workshops and training programmes, and preparation of state-of-the-art reports and directories on various subjects with a view to developing the scientific and technological skills in Member States through increased cooperation. Ever since its establishment, the Committee has held sixteen meetings under the erstwhile IPA on Science and Technology (TC8) has exchanged information, experiences and data on Science and Technology. A number of Studies/Directories/Guide Books, State-of-the Art Reports, Joint Research Projects have been prepared. 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; and Appropriate Post Harvest Food Technology for Perishable Items. Networking arrangements have been initiated in the fields of Bio-technology and Genetic Engineering; Energy Modelling Techniques; Technologies and

National Nodal Points have been identified by Member States.

Many State-of-the-Art Reports and Directories have been completed. It made many proposals for regional projects including Utilization of Wind Energy, Connectivity of the Member States through Internet for establishing the Information Processing System and Databases on Technologies.

Technical Committee on Human Resources Development

The restructured Technical Committee on Human Resources Development includes (a) education; (b) culture; (c) sports; and (d) youth development. The erstwhile TC on Education had identified 7 priority areas viz. Universalisation of Primary Education; Vocational and Technical Education, Higher Education, Research and Training. Nodal agencies and points have been identified for sharing of information of mass literacy programmes among the member states. The erstwhile TC on Sports, Arts and Culture included several coaching camps on various disciplines of sports, exhibitions of handi-crafts, photographic exhibitions, archaeological Congresses etc. This includes the South Asian Festival. It has identified many long term measures to strengthen the level of activities including establishment of networking arrangements in the field of archaeology, museology and historical studies and creation of consortium of open university in the region. Some action has been taken towards its implementation.

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The activities undertaken have helped to foster a SAARC spirit through larger public appeal and involvement. However the SAARC Chairs, Fellowships and Scholarships Scheme initiated at the Bangalore Summit in 1987 have very partially taken off.

TECHNICAL COMMITTEE ON ENERGY Cooperation in the energy sector was brought under a new Technical Committee on Energy.

The basic objectives are to:

► develop a common understanding on energy cooperation in South Asia.► provide a forum for discussion on ways and means of developing.► harness the existing energy resources within the region.► facilitate exchange of information between Governments, the private sector.► experts and appropriate community-based organizations active in the field. ►consider modalities/technical details regarding establishment of an appropriate South Asian Energy Grid.► consider the desirability and feasibility of obtaining supplementary technical and other resources from regional and international partners.

However after the First Meeting [Dhaka, November 2002] the TC related to Energy has now been converted into a Working Group on Energy. This Group’s first meeting [15-16 June 2004, Islamabad] recommended the following Plan of Action:

1. A South Asia Energy Forum at Ministerial Level may be formed under the SAARC umbrella for exchange of views on policy issues and cooperation.

2. The possibility of setting up a SAARC Energy Centre may be explored. 3. A Study may be carried out on options, benefits and constraints of energy

trade in the region.

4. Exchange of information and technical discussions are prerequisites for cooperation and may be encouraged by the respective Governments.

5. Joint strategies may be evolved for global energy from each other’s experiences in institutional and pricing reforms in the energy sector.

6. Countries of the region may benefit from each other’s experiences in institutional and pricing reforms in the energy sector.

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7. In the long term transnational energy lines (electricity, gas and oil) could provide basis for an integrated and prosperous economic future of South Asia.

8. Special focus is required on energy availability in rural areas, including conventional and non-conventional forms of energy for economic development and poverty reduction.

9. Non-conventional and renewable sources of energy may be promoted through sharing of manpower, expertise, know-how and training programmes.

10. Feasibility of establishing a Regional Fund for promoting non-conventional energy may be explored.

SAARC DEVELOPMENT FUND (SDF)

In 1996, a first funding mechanism was created in SAARC, ‘South Asian Development Fund (SADF)‘, merging the SAARC Fund for Regional Projects (SFRP) and the SAARC Regional Fund. SADF objectives were to support industrial development, poverty alleviation, protection of environment, institutional/human resource development and promotion of social and infrastructure development projects in the SAARC region. SADF started with a resource base of US$5 million (contributed on pro-rata basis by SAARC Member States), and till its closure in June 2008, had funds amounting to approx. US$ 7.0 million. Till its closure, SADF completed techno-economic feasibility studies for sixteen project studies.

During 2002-2005, SAARC Member States considered instituting various sectoral funding mechanisms e.g. Poverty Alleviation Fund, Infrastructure Fund, South Asian Development Bank, Media Development Fund, Voluntary Fund for the Differently Able Persons. A primary reason was that the existing South Asian Development Fund (SADF) was found to be inadequate i.e. in terms of required quantum of funds and its limited scope of work. In order to avoid proliferation of funds, the SAARC Financial Experts (September 2005) looked at the entire gamut of issues relating to funding of SAARC projects and programmes; and, amongst others, agreed that in lieu of proliferating sectoral financing mechanisms, the SADF be reconstituted into the SAARC Development Fund (SDF). And, SDF would have a permanent Secretariat, with three Windows (Social, Economic, Infrastructure). The Thirteenth SAARC Summit (Dhaka, 12-13 November 2005) finally decided to reconstitute the SADF into SDF to serve as the “umbrella financial mechanism” for all SAARC projects and programmes

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The Social Window would primarily focus poverty alleviation and social development projects. The Infrastructure Window would cover projects in the areas namely energy, power, transportation, telecommunications, environment, tourism and other infrastructure areas. The Economic Window would primarily be devoted to non-infrastructural funding.

Following that, by March 2008, an Inter-Governmental process on SDF, concluded the work on the SDF legal architecture i.e. Charter, Bye laws. As it finalized the legal architecture, among others, it mandated the SAARC Secretariat to function as the interim Secretariat for the SDF to operationalise the Fund from available resources and to implement identified projects, till such time a Permanent Secretariat is established.

The SDF Charter was signed at the Fifteenth SAARC Summit (Colombo, 2–3 August 2008). The Summit also agreed that SDF Permanent Secretariat would be established in Thimphu. The Fifteenth Summit further decided that Member States would early ratify the SDF Charter.

Once the SDF inter-governmental process completed its work, SDF Board became functional and has been meeting periodically: Second Meeting (SAARC Secretariat, May 2008), Third Meeting (SAARC Secretariat, 21 July 2008), Fourth Meeting (Thinphu, 29-30 April 2009), Fifth Meeting (Kabul, 1-2 September 2009), Sixth Meeting (Thimphu, 25-26 November 2009), Seventh Meeting (SAARC Secretariat, 3-5 February 2009).

Two regional Projects have so far been underway: The first Project i.e. on Women Empowerment (since August 2008); and, the second Project on Maternal & Child Health (MCH) (since September 2009). Efforts are underway to initiate steps related to the Project on Teachers Training, as approved by the SAARC Finance Ministers (2007). At the last i.e. Seventh Meeting of the SDF Board, three more regional/sub-regional Projects were also taken up: on Zero Energy Cold Storage; on Post-harvest Management and Value addition of Fruits in Production Catchments in SAARC Countries; and, on Facilitating Access to Energy Efficient and Renewable Energy Technologies, with special focus on Women in selected SAARC Countries.

A growing interest is evident among the SAARC inter-governmental bodies/mechanisms to draw up focused Projects – regional or sub-regional – and to seek funding from SDF.

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Over the past two years (2008-’09), the SDF Operational Modalities, initial personnel structure of the Fund has been finalized to facilitate operationalisaiton of the SDF Permanent Secretariat in Thimphu. The Seventh Meeting of the Board recommended to the SDF Governing Council on appointment of the first CEO of the Fund. By early April 2010, the Members of the SDF Governing Council i.e. the SAARC Finance Ministers approved the CEO. Once approved by the Sixteenth SAARC Summit, the CEO would formally initiate the work of the SDF Secretariat. During the Summit, in presence of the heads of State/Government, the SDF Secretariat would be formally inaugurated.

By April 2010, all Member States have ratified the SDF Charter. On 15 April 2010, therefore, SAARC Secretary General issued the ‘notification’ on the Charter’s entry into force. This completed the entire legal process for the SDF.

Of the determined corpus i.e. Initial Paid-up Capital of SDR 200 million (approx. US$ 300 million), the Secretariat has so far received the full quantum of the assessed subscription from India and Bhutan. India has additionally sent US$ 100 million, as its voluntary contribution for Projects on Social Development. Other Member States are expected to forward respective subscription in due course.

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CHARTERS OF SAARC

SAARC Charter (Signed in Dhaka on 08th December 1985)

SAARC Social Charter (Signed in Islamabad on 04th January 2004)

CHARTER OF THE SOUTH ASIAN ASSOCIATION FOR REGIONAL COOPERATION We, the Heads of State or Government of BANGLADESH, BHUTAN, INDIA, MALDIVES, NEPAL, PAKISTAN and SRI LANKA;

1. DESIROUS of promoting peace, stability, amity and progress in the region through strict adherence to the principles of the UNITED NATIONS CHARTER and NON-ALIGNMENT, particularly respect for the principles of sovereign equality, territorial integrity, national independence, non-use of force and non-interference in the internal affairs of other States and peaceful settlement of all disputes.

2. CONSCIOUS that in an increasingly interdependent world, the objectives of peace, freedom, social justice and economic prosperity are best achieved in the SOUTH ASIAN region by fostering mutual understanding, good neighbourly relations and meaningful cooperation among the Member States which are bound by ties of history and culture.

3. AWARE of the common problems, interests and aspirations of the peoples of SOUTH ASIA and the need for joint action and enhanced cooperation within their respective political and economic systems and cultural traditions.

4. CONVINCED that regional cooperation among the countries of SOUTH ASIA is mutually beneficial,desirable and necessary for promoting the welfare and improving the quality of life of the peoples of the region.

5. CONVINCED further that economic, social and technical cooperation among the countries of SOUTH ASIA would contribute significantly to national and collective self-reliance.

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6. RECOGNISING that increased cooperation, contacts and exchanges among the countries of the region will contribute to the promotion of friendship and understanding among their peoples.

7. RECALLING the DECLARATION signed by their Foreign Ministers in NEW DELHI on August 2, 1983 and noting the progress achieved in regional cooperation.

8. REAFFIRMING their determination to promote such cooperation within an institutional framework.

DO HEREBY AGREE to establish an organisation to be known as SOUTH ASIAN ASSOCIATION FOR REGIONAL COOPERATION hereinafter referred to as the ASSOCIATION, with the following objectives, principles, institutional and financial arrangements:

THE OBJECTIVE OF THE ASSOCIATION AS DEFINED IN THE CHARTES ARE:

· To promote the welfare of the people 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 realize their full potential.

· 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.

· To strengthen cooperation with other developing countries.

· To strengthen cooperation among themselves in international forums on matters of common interest.

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

Afghanistan was added to the regional grouping at the behest of India on 13 November 2005,and became a member on 3 April 2007. With the addition of Afghanistan, the total number of member states were raised to eight (8). In April 2006, the United States of America and South Korea made formal requests to be granted observer status.

The European Union has also indicated interest in being given observer status, and made a formal request for the same to the SAARC Council of Ministers meeting in July 2006. On 2 August 2006 the foreign ministers of the SAARC countries agreed in principle to grant observer status to the US, South Korea and the European Union. On 4 March 2008, Iran requested observer status. Followed shortly by the entrance of Mauritius.

DHAKA 2009 SUMMIT The summit accorded observer status to People's Republic of China, Japan, South Korea and United States of America. The nations also agreed to organize development funds under a single financial institution with a permanent secretariat, that would cover all SAARC programs and also ranging from social, to infrastructure, to economic ones.

CURRENT MEMBERS (alphabetically)

Afghanistan

Bangladesh

Bhutan

India

Maldives

Nepal

Pakistan

Sri Lanka

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OBSERVER

Australia

China

European Union

Iran

Japan

Mauritius

Myanmar (Burma)

South Korea

United States of America

FUTURE MEMBERSHIP

The People's Republic of China has shown its interest in joining SAARC. While Pakistan and Bangladesh support China's candidature, India is against the prospect of Chinese membership. China's entry in to SAARC will likely balance India's overbearing presence there. However, during the 2005 Dhaka summit, India agreed on granting observer status to the PRC along with Japan. During the 14th summit, Nepal along with Pakistan and Bangladesh, announced their support for the membership of China. China seeks greater involvement in SAARC, however, finds it too early to apply for full membership.

Indonesia intends to become an observer as well, and is supported by SriLanka.

Iran, a state with borders to two SAARC members, has traditionally enjoyed strong cultural, economic and political relationships with Afghanistan and Pakistan and has expressed its desire to become a member of the South Asian organization. On 22 February 2005, the Foreign Minister of Iran, Kamal Kharrazi, indicated Iran's interest in joining SAARC by saying that his country could provide the region with "East-West connectivity". On 3 March 2007, Iran

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asked to join the SAARC as an observer. SAARC Secretary-General Lyonpo Chenkyab Dorji responded by saying that Iran's request for observer status would be taken up during a meeting of ministers of foreign affairs of SAARC member countries in the 3 April summit in New Delhi.

Russia intends to become an observer as well, and is supported by India.

Myanmar has expressed an interest in joining as a full member, even though it is already a member of the ASEAN. If done so, Myanmar will become the ninth member in the group. India is currently backing Myanmar. Myanmar’s 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.

South Africa has participated in meetings.

LIST OF SAARC SUMMITS

NO LOCATION DATE

1st DHOKA December 7–8, 1985

2nd BANGOLORE November 29–31, 1998

3rd KATMANDU November 2–4, 1987

4th ISLAMABAD December 29–31, 1988

5th MALE November 21–23, 1990

6th COLOMBO December 21, 1991

7th DHAKA November 12–13, 2005

8th NEW DELHI May 2–4, 1995

9th MALE May 12–14, 1997

15th COLOMBO August 1–3, 2008

16th THIMPHU April 28–29, 2010

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NO LOCATION DATE

1ST DHOKA 7–8 December 1985

2ND Bangalore 16–17 November 1986

3RD Kathmandu 2–4 November 1987

4TH Islamabad 29–31 December 1988

5TH Malé 21–23 November 1990

6TH Colombo 21 December 1991

7TH Dhaka 10-11 April 1993

8TH New Delhi 2–4 May 1995

9TH Malé 12–14 May 1997

10TH Colombo 29–31 July 1998

11TH Kathmandu 4–6 January 2002

12TH Islamabad 2–6 January 2004

13TH Dhaka 12–13 November 2005

14TH New Delhi 3–4 April 2007

15TH Colombo 1–3 August 2008

16TH Thimphu 28–29 April 2010

17TH ADDU November 2011(Planned)

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SAARC PREFERENTIAL TRADING AGREEMENT

The Agreement on SAARC Preferential Trading Arrangement (SAPTA) was signed on April 1993 and entered into force on 7 December 1995, with the desire of the Member States of SAARC (India, Pakistan, Nepal, Sri Lanka, Bangladesh, Bhutan and the Maldives) to promote and sustain mutual trade and economic cooperation within the SAARC region through the exchange of concessions.

The establishment of an Inter-Governmental Group (IGG) to formulate an agreement to establish a SAPTA by 1997 was approved in the Sixth Summit of SAARC held in Colombo in December 1991.

The basic principles underlying SAPTA are:

Overall reciprocity and mutuality of advantages so as to benefit equitably allContracting States, taking into account their respective level of economic and industrial development, the pattern of their external trade, and trade and tariff policies and systems;

Negotiation of tariff reform step by step, improved and extended in successive stages through periodic reviews;

Recognition of the special needs of the Least Developed Contracting States andagreement on concrete preferential measures in their favour.

Inclusion of all products, manufactures and commodities in their raw, semi-processed and processed forms.

So far, four rounds of trade negotiations have been concluded under SAPTA covering over 5000 commodities.

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CRITICAL DRAWBACKS

The critical drawbacks may be summed up as follows:-

- Lack of well-identified target oriented and time-bound programmes. Mostly seminars and workshops.

- Absence of proper monitoring, implementation and evaluation. So no assessment of benefits by the Member States on a continuing basis.

- Poor accountability of the TCs and the Member States.

- Non-attendance of SFPs and the absence of sufficiently high-level and technically sound officials has led to delayed procedures.

- Inter-sectoral coordination missing. Hence instances of overlapping of activities.

- Role of NFPs and SFPs not to the expected level. Frequent changes of NFPs and SFPs and little interaction between NFPs and SFPs within a member country have exacerbated the problem.

- Cross-cutting issues have not been addressed.

- With the focus of SAARC on high priority issues like trade and economic cooperation,

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Product Areas

(scope)

All raw materials

Semi finished products

Finished goods


SIPA has been relegated to the background. This is particularly serious, because the SIPA activities provide fodder and complementarity cushion to the sustainability of trade and investment cooperation also.

- Poor networking arrangements exist between national institutions and centres of excellence.

- Calendars of activities reveal that rescheduling, postponement or in some cases cancellation has been a significant feature.

- The decision of the First and Second Special Sessions of the Standing Committee of holding two activities per TC have resulted in drastically reducing the number of activities.

- The recommendations of Seminars and Workshops have not been followed through.

Sometimes the recommendations of the workshops on crucial themes have tended to be general in nature and have more of individual Member State perspective rather than much needed regional perspective.

- There has been no institutionalised mechanism by professionals/experts in SAARC

Secretariat to monitor the SIPA activities :-

- Changing of the Chairmanship arising out of Member States' domestic exigencies brings an element of discontinuity. This leads to inordinate delay and limits the cohesiveness.

- There exists a fundamental problem of not sustaining the activities once initiated with all seriousness and purposefulness. The coordination among various bodies like TCs, MCTCs, NFPs, SFPs, CEC and the Standing Committee has to be simplified.

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SAARC YOUTH AWARD

The SAARC Youth Award is awarded to outstanding individuals from the SAARC region. The award is notable due to the recognition it gives to the Award winner in the SAARC region. The award is based on specific themes which apply to each year. The award recognizes and promotes the commitment and talent of the youth who give back to the world at large through various initiatives such as Inventions, Protection of the Environment and Disaster relief. The recipients who receive this award are ones who have dedicated their lives to their individual causes to improve situations in their own countries as well as paving a path for the SAARC region to follow. The Committee for the SAARC Youth Award selects the best candidate based on his/her merits and their decision is final.

Previous Winners:

1997: Outstanding Social Service in Community Welfare - Mr. Md. Sukur Sale(Bangladesh)

1998: New Inventions and Discoveries - Dr. Najmul Hasnain Shah (Pakistan)

2001: Creative Photography: South Asian Diversity - Mr. Mushfiqul Alam (Bangladesh)

2002: Outstanding contribution to protect the Environment - Dr. Masil Khan (Pakistan)

2003: Invention in the Field of Traditional Medicine - Mr. Hassan Sher (Pakistan)

2004: Outstanding contribution to raising awareness for TB and/or HIV/AIDS – Mr. Ajij Prasad Poudyal (Nepal)

2006: Promotion of Tourism in South Asia - Mr. Syed Zafar Abbas Naqvi (Pakistan)

2008: From Himalayan glaciers to verdant plains to coral reefs – protecting the Environment in South Asia - Ms. Uswatta Liyanage Deepani Jayantha (Sri Lanka)

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CONCLUSION

South Asian Association for Regional Cooperation (SAARC) is an economic and political organization of eight countries in Southern Asia. In terms of population, its sphere of influence is the largest of any regional organization 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 realize their full potentials.

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