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SAARC

Topic:SAARC (South Asian Association of Regional Cooperation)

- Past, Present and Future Prospects

Kanwal Batool Naqvi

1

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SAARC

1: HISTORY1977-85: Bangladesh Contribution

1985: Charter-December 08, 1985

2012: Economic Union Dream?

2015: Single Currency?

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SAARC

2: PRINCIPLESFocus: Cooperation in SAARC

- Bilateral

- Multilateral1. Sovereign equality

2. Territorial integrity

3. Political independence4. Non-interference in internal affairs

af other states and mutualbenefits

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SAARC3: OBJECTIVES1. Inter-SAARC

1. Welfare to people (quality of life)

2. Economic growth

3. Collaboration

- Economic

- Social- Culture

- Scientific

4. Collective self reliance

5. Mutual trust, under-standing and appreciation

Intra-SAARC

1. Inter-cooperation in national forums

2. Domestic countries strengthening

3. International and regional organizations

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SAARC4: SAARC-Current Members

1. Afghanistan (Number 13, 2005)

2. Bangladesh

3. Bhutan

4. India

5. Maldives6. Nepal

7. Pakistan

8. Sri Lanka

Share of Population in the World: 23.19%

Based on: World Development Report 2012.

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SAARC6: SAARC-Summits

S. No. Location Date of Summit1st Dhaka 7-8, December, 1985

2nd Bangalore 16-17 November, 1986

3rd Kathmandu 2-4 November, 1987

4th Islamabad 29-31 December, 1988

5th Male 21-23 November, 1990

6th Colombo 21st December, 1991

7th Dhaka 10-11 April, 1993

8th New Delhi 2-4 May, 1995

9th Male 12-14 May, 1997

10th Colombo 29-31 July, 1998

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SAARC6: SAARC-Summits

S. No. Location Date of Summit

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

17 Male November 10-11, 2011

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SAARCWORK PACKAGES

1. India

1. Business information data networking

2. HRM

3. S & T

4. Social dimension in business

development

2. Pakistan1. Trade

2. Investment

3. Sri Lanka

Women Entrepreneurship

4. BangladeshTelecommunication

5. Nepal

Travel & Tourism Maldives-tourism

6. Bhutan & Nepal

Energy

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SAARC8: INITIATIVES

- SAPTA

- SAFTA- SAARC University

INSTITUTIONS

1. People to people contact

2. Regional- Agricultural infrastructure: Bangladesh

3. Funds

- Regional Projects

- Japan Special Funds- South Asia Development Fund

- Other Funds

4. SAARC Chamber of Commerce & Industry:Islamabad-1992

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SAARC

10: UNIQUE FEATURES

1. The oldest ancient living civilizations2. Worlds sleeping giant-started moving

3. People of all regilons, faiths, ideologies live

4. Economic force-common market

5. The largest irrigated area

6. The second largest railway network

7. The largest English speaking area

8. The largest labour force: 425m people

9. Home of the poorest:

- Job openings

- Self employment

10. 750m commerce-the largest single block

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SAARC12: CHALLENGES

1. Poverty

2. Unemployment

3. Literacy

4. Governance5. Education

6. Development

7. Enabling environment

8. Defense expenditure

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ECONOMIC CHALLENGES AND

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ECONOMIC CHALLENGES FOR PAKISTAN

The Pakistans economy is currently passing through themost difficult phase of its economic history.

Once a robust economy, with economic growth over 6%of GDP, now it has been transformed into a fragileeconomy, due to serious economic challenges, the mostimportant being our countrys frontline role in War on

Terrorand the persistent

Power and Energy Crisis

which has crippled our industrial sector.

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Before I proceed further, lets see what the

IMF Mission, which recently visited Pakistan

in October 2012, says in its Report :

The Pakistans economic situation is

deteriorating and Islamabad urgently needs

to address deep problems in its energy

sector while boosting growth to meet arapidly growing population.

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The IMF Mission further goes on to say that:

The countrys GDP in 2012-13 is likely to

grow at the annual rate of 3% to 3.5%, notenough to provide jobs to the growing labor

force. Decisive and far-sighted action is

needed to address this challenging outlook.

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The IMF Mission Report points out thatENERGY PROBLEM

is the largest single impediment to higher economicgrowth for Pakistan and a major factor behind

macroeconomic imbalances. For this, it has outlined a

comprehensive approach to reform to tackle these

problems.

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The Challenges that our Country faces today do

not commensurate with the abundant and vast

potential that it possesses.

Pakistan offers huge potential andopportunities for trade and investment to both

foreign investors and the local economy.

Pakistan is ranked number one in the World

Banks Ease of Doing Business Index. in Asia

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Pakistan is worlds 2nd largest producer of water,

buffalo meat and milk

Pakistan is worlds 3rd largest producer of cotton

Pakistan is the 4th largest goat meat supplier

Pakistan has 5th largest Coal and Gold reserves

Pakistan is the 7th largest wheat grower

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Prospects and Economic Revival Efforts

The economic growth of Pakistan stood at 3.7% in FY2012 which is higher than 3% realized in previous

year, but less than the target of 4.2 percent. The

State Bank of Pakistan in its third quarterly Report

State of the Economysays that this performance is

notable, given the following challenges:

Considerable damage to cotton crop due tofloods

Ongoing energy shortages;

Rise in international oil prices; and

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The State Bank comments on the economy recovery

prospects as follows:

Although Pakistans economy has shown some

recovery in terms of GDP growth, the key macro

indicators still remain weak. Persistent inflationand pressure on the fiscal and current accounts,

remain the key challenges for the economy

Like IMF, the State Bank of Pakistan also pinpoints

that Low investment and energy shortages have

direct growth implications. Other areas that poses

challenge and major risk to the macro-economy is

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Pakistan must overcome its economic challenges as

it has vital role to play to bring economic prosperityin SAARC RegionSAARC region has potential of becoming a vibrant region in the

world given its enormous resources in manpower, technology,

agricultural and mineral assets, its history and civilization.

Pakistan must take immediate measures to meet its present

economic challenges as it has a more vibrant role to play for

the regional cooperation in the SAARC region.

Pakistan could play an important role in bringing the people of

SAARC together by promoting investment, trade and people to

people contacts.

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The Existing Potential in the

South Asian RegionSouth Asia is the second fastest growing region in the

world and it has the potential to be an economic power

by the year 2025. Many in South Asia, however, still face

extreme poverty, especially the SAARC countries.

South Asia is home to half of the worlds poor, with 40%

of its population living on less than $1.25 a day.

South Asia accounts for only 2.5% of GDP 2% of world

exports, and 1.6% of world Foreign Direct Investment .

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SAARC countries have common economic

goals and economic challenges

Significant challenges and barriers still exist which

continue to restrict the economic growth and

integration in the SAARC region.

What is required is a firm commitment by the

SAARC countries to move towards prosperity by

placing stronger emphasis on economic

development through REGIONAL PARTNERSHIPS as

they share common economic goals and challenges.

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Private Sector in SAARC countries

have to play a Pro-active Role

The private sectors of SAARC countries are already

involved in promoting economic cooperation in the

region but they must be pro-active to put a firm

pressure on their respective governments to provide

a business enabling environment to foster the pace

of economic development and cooperation within

the region. The Private sector must play a dynamic

role to bring about revolutionary changes and foster

the pace of regional integration in SAARC region.

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Key Challenges for SAARC Region

While SAARC countries continue to make efforts for

economic development and intra-regional

integration, their progress is curtailed by a

continuing sub-set of systemic issues andchallenges common to all member nations.

I would like to outline few of the key

challenges and issues that are creatingbarriers in the way of increasing flow of trade

and investment among the SAARC Countries

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Political Mindsets and Issues

Abject Poverty

Low Intra-regional trade

Low- Intra-regional or cross-border Investment

Poor Transport Network or Infrastructure to facilitate trade

Sizable Sensitive List, Para Tariff and Non-Tariff Barriers

Food Security issues

Climatic Change Issues (floods and natural disasters)

Under-utilization of renewable energy resources

Stringent visa requirements

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The above challenges need to be

dealt on preferential basis by the

SAARC countries, especially the two

big nationsPAKISTAN and INDIA.

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More IntraSAARC Trade can lead to Better

economic conditions for People

Intra-regional trade is one of the important measures to

alleviate and improve the economic condition of the

people of this region. However, as also indicated in thelist of barriers the Intra regional trade among the

SAARC member states is marred by the issues of non-

tariff barriers and sensitive list. The SAARC states must,

therefore, address this issue immediately and

effectively for rapid expansion of intra regional trade.

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More Intra-SAARC Investment can lead to

less dependence on Western Investors

The investment regime in SAARC is not only restrictive

but lacks policy harmonization. Supporting mechanisms

are needed to support capital flow and help attract moreForeign Direct Investment (FDI) within SAARC countries

and depend less on investment from outside the region.

The FDI sources are highly diversified in SAARC countries,

mostly still originating in developed countries, outside

the region. India, Bangladesh and Pakistan attract most

of their FDI inflows from countries outside the region.

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There is strong case for deeper

intraregional investment.

Expanding intraregional investment is the key to

bolstering the investment regime in SAARC region.

I would suggest that Boards of Investments in

the SAARC countries should promote more

intraregional investment by establishing theiroffices in each others country.

.

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I would like to highlight two other issues,

which are not directly concerned with

economy, trade or investment, but theseissues or challenges have direct bearing on

all of them. These challenges are Food

Security Issues and Natural Disaster

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Food Security Issues

Considering that the estimated population of South Asia

will rise by 25% to 2000 million in 2025, food security is

the most tangible threat to all SAARC countries.

This threat cannot be mitigated by a variable increase in

food production alone, but by efforts to drastically

improve access to food sources and clean drinking water.

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Natural Disasters

SAARC countries are at greatest risk of natural disasters

like earthquakes, floods and cyclones, which are already

having major impacts on their economic performance.

These have resulted in lower agricultural productivity in

the entire region. If this continues, it can turn out in shape

of severe economic shocks for the SAARC Countries.

To address the above two issues, the SAARC countries

must take action on immediate basis.

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Key Opportunities for

SAARC Region

There is always a blessing in disguise.

Though the SAARC region is facing a host of

challenges but there are Opportunities as

well. We need to identify and explore them.

Few areas are highlighted here, which have

so far not been explored.

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(1) Cooperation in Services

Telecommunication Banking

Energy

Transport Software services

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(2) Sharing Renewable Energy

SAARC Region has enormous potential in Energy, especially

HYDRO-POWER, but only 10% of this potential is currently

being utilized. Renewable energy options such as SOLAR and

WIND-POWER need to be seriously considered as these are

vital for the economic growth and sustainability of SAARC.

India has around 25000MW of wind power, which can be

exported to other SAARC countries.

The Renewable Energy sources in SAARC countries need to

be tapped through infrastructure development, integrated

investment promotion policy and government pledges.

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(3) Greater involvement of

Private Sectors of SAARC

The SAARC Governments must consider an increased role for

their private sectors in establishing public-private partnerships,

where possible, in SAARC countries.

The Private sector needs to be more involved in guiding

Government policies through lobbying and advocacy efforts.

The private sector is effective in bringing in a commercial

orientation and operating in a non-political way. They also

have strong implementation capacities to strengthen economic

and business opportunities along with trade in the region.

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(4) Promising Youth leadership

The young business leaders of SAARC region should

be brought together to prepare them as the next

generation of business leaders for South Asia and to

identify their role in the formation of an integratedfuture business community. There is strong need for

youth empowerment and focus on business

leadership for South Asian economic development.

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(5) Investment in Health and Education

SAARC countries have received bulk of FDI in sectors like

Telecommunication, Transportation, Exploration of mineral

and natural resources, while other core sectors like health

and education are given least importance.

Investment in health and education sectors in form of FDI or

Joint Ventures between public and private enterprises is

squarely productive, which will not only enhance Human

Development Index of the region but also help achieve

sustainable economic growth.

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Concluding Remarks

SAARC was established in 1985 and the primary

objective identified in its Charter says:

To promote the welfare of the peoples of South Asia

and to improve their quality of life"

The question is has SAARC achieved this objective?

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Way Forward

I think that the two bigger countries Pakistan and

India should have to play their due role to move

SAARC towards the objective as given in its Charter.

I also think that the Role of private sector is quite

important as economy drives politics, and business

shapes the social values.

Businesses have the power to make a difference.

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Way Forward

As far as Pakistan is concerned, I think that there is need

to create synergy between government and business

community to help resolve the present economic crisis

and put the country on path of progress and prosperity.

The Institute of Cost and Management

Accountants is always there to help the

Government in its efforts to bring

economic prosperity by extending

its professional expertise.

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South Asian Regional Standards

Organisation (SARSO)

Chandan Bahl

Scientist E(International Relations)Bureau of Indian Standards

India

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Disclaimer: This is not a presentation by SARSO but it ispresentation of factual information on SARSO by

BIS

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ABOUT SAARC

South Asian Association for Regional Cooperation (SAARC) was

formally launched in 1985

Its seven founding members are Bangladesh, Bhutan, India,

Maldives, Nepal, Pakistan, and Sri Lanka. Afghanistan joined

SAARC in 2007

The main objectives of SAARC are to place regional cooperation

on a firm foundation, accelerate the pace of social and economic

development of the countries, and further the cause of peace,

progress and stability in the region.

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TRADE AND REGULATORY COOPERATION

With the increase in non-tariff barriers in trade, countries/regions need to look at ways to combat them and thusRegulatory Cooperation assumes importance.

Harmonization of technical standards and mutualrecognition of conformity assessment procedures betweentrading partners are forms of Regulatory Cooperation thathelps in removing the technical barriers to trade andfacilitates flow of goods and services in the region.

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ESTABLISHMENT OF SARSO- BACKGROUND

SAARC Committee on Economic Cooperation (CEC) -established in 1991, for identifying and implementingprogrammes in the core area of economic and tradecooperation.

The Sub-Group on Standards and Quality working under theauspices of the CEC in its 2nd meeting on 30-31 August 2006,decided to set up the SAARC Standards Coordination Board(SSCB), as a precursor to the setting up of the SAARC RegionalStandards Body

SSCB comprised of a member from each of the NationalStandards Body of the Member States

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ESTABLISHMENT OF SARSO- BACKGROUND

SSCB at its 3rd meeting held on 1-2 Nov 2007, recommended

for setting up of the SAARC Regional Standards Body, to be

formally named as the South Asian Regional Standards

Organization (SARSO)

SSCB approved the text of the draft agreement for

establishment of SARSO

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SARSO AGREEMENT

The Agreement on the Establishment of the South Asia RegionalStandards Organization (SARSO), was signed at 15th SAARC Summit heldin Colombo, Sri Lanka on 2nd - 3rd August, 2008, by the ForeignMinisters of the SAARC Member States

The Agreement on establishment of SARSO has since been ratified by all

Member States with Afghanistan ratifying the Agreement in May 2011.

The Agreement on establishment of SARSO has entered into force witheffect from 25 August 2011 with issuance of Notification to this effect bythe SAARC Secretariat.

SARSO is to be located in Dhaka, Bangladesh

The first meeting of the Governing Board of SARSO is likely to be held inDecember 2011 in Bangladesh

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OBJECTIVES OF SARSO

To promote and undertake harmonization of nationalstandards of the SAARC Member States with a view toremoving TBT and facilitate flow of goods and services inthe region

To develop SAARC standards on the products ofregional/sub-regional interest

To encourage the use of international standards publishedby ISO, IEC, etc. by way of adoption, where appropriate, asSAARC Standards

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OBJECTIVES OF SARSO (Contd..)

To encourage exchange of information and expertise amongthe NSBs of the Member States in the fields ofStandardization and Conformity Assessment

To facilitate capacity building among the Member States inthe fields of Standardization and Conformity Assessment by

way of training, workshops, seminars, etc

To act as a source of information for the Member States onstandards, regulations, conformity assessment

To present the common interests of the Member States in

the various international standardization organisations

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OBJECTIVES OF SARSO (Contd..)

To establish mutually beneficial cooperation with the relevantinternational and regional organizations as per relevant SAARCguidelines

To promote MRAs on Conformity Assessment Procedures amongthe Member States

To encourage sharing of facilities relating to conformityassessment procedures among the Member States

To explore the possibility of having a common mark of conformityamong the Member States

To undertake any other task(s) as deemed appropriate.

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STRUCTURE OF SARSO

The Organisation shall comprise of:

Governing Board

Technical Management Board (TMB)

Director-General; and

Secretariat.

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Composition of Governing Board

highest authority of SARSO vested with all powers relating to its

functioning.

consists of the Heads of respective NSB of each Member State.Each Member and his/her Alternate shall serve at the pleasure

of the appointing Member State.

The Chairperson of TMB, the Secretary General of SAARC or his

representative and the Head of the Secretariat to be the ex-officio Members of the Governing Board.

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Functions of Governing Board (GB)

GB may create and assign other entities, as and whenrequired, for the smooth operation of the activities of SARSO

In line with the objectives and functions of SARSO, GB shallformulate policies for the effective functioning of SARSO

GB may also give directives and provide guidance to theother organs of SARSO including TMB and Sectoral Technical

Committees.

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Technical Management Board (TMB)

consists of one technical expert nominated by each NSB ofthe Member States.

responsible for the planning, coordination and monitoring of

all the technical work of SARSO.

may establish Sectoral Technical Committees (STC) as andwhen deemed necessary for development of harmonisedstandards

scope and programme of work for each STC under TMB shallbe approved by GB

shall meet at least annually preferably immediately beforeGB meetings and submit its reports to GB

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Director-General and the Secretariat

SARSO shall be headed by a Director-General who will be

appointed by the Governing Board for a period of three

years from among the nationals of the Member States

The Organisation shall have a Secretariat consisting of

officers and staff

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ON GOING WORK

Development of SAARC Standards

The following products have been identified forharmonization/development of SAARC Standards:

Sugar Skimmed Milk Powder BiscuitsInstant Noodles Vegetable Ghee Electric Cables

Textile Fabric Jute Cement SteelTubes Structural Steel Toilet Soap

Sector based approach adopted for harmonization/ developmentof SAARC standards with setting up of Sectoral TechnicalCommittees

(i) Food and Agricultural Products

(ii) Electrical, Electronics, Telecoms and IT

(iii) Jute, Textiles & Leather

(iv) Building Materials

(v) Chemical and Chemical Products

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ON GOING WORK

Draft SAARC Agreement on Implementation of Regional

Standards

The objective of this agreement is to provide the framework

as well as the guiding principles for implementation of the

SAARC standards

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ON GOING WORK

Draft SAARC Agreement on Multilateral Arrangement on

Recognition of Conformity Assessment

The objective of this Agreement is to facilitate SAARC Member

States to accept results of conformity assessment

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EXPECTED BENEFITS INDIAN PERSPECTIVE

Harmonization of national standards of the Member Stateswould help in removing the technical barriers to trade andfacilitate flow of goods and services in the region

Facilitate in projecting common interests of the MemberStates in the various international standardizationorganizations

Facilitate acceptance of results of conformity assessment

amongst the countries in the region, and

Facilitate capacity building among Member States