SAARC

SAARC SAARC

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South Asian Associatio n Regional Cooperati on

MBA (Banking & Finance) 4th Term, Session 2009-2011

Submitted ByClass Roll NumberExam Roll NumberRomana NargusA-1462

Submitted To

$ir. KHAIR-UZ-ZAMAN

DECLARTION
E C L A R T I O N

I declare that this project report entitled South Asian Association Regional Cooperation is original and bonafide work of my own in the partial fulfillment of the requirements for the award of the Degree of MASTER OF
BUSINESS ADMINISTRATION (Banking & Finance) and submitted to the

Department of Business Administration, Gomal University Dera Ismail Khan, Khyber.Pakhton.Khwa. The data that has been collected by me is truly authentic and contains true and complete information.

Romana Nargus Class Roll No A-1 Exam Roll No 462

ACKNOWLEDGEMENT
C K N O W L E D G E M E N T

All praise to ALLAH, the most merciful, kind and beneficent, and the source of all knowledge, wisdom within and beyond our comprehension. He is the only God, who can help me in every field of life. All respect and possible tributes goes to my Holy Prophet Mohammad (SAW), who is forever guidance and knowledge for all human beings on this earth. I am proud to say that I am very grateful to my family whose kind prayers and cooperation helped me at every step of my work. Special thanks go to my formative Teachers for their cooperation for the sake of our knowledge.

Romana Nargus

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IN THE NAME OF

ALLAH
THE MOST GRACIOUS & THE MOST MERCIFUL

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South Asian Association for Regional Cooperation (SAARC)

Headquarters Official languages Demonym Chairman Secretary General Total Area

Website

Kathmandu, Nepal English South Asian Mahinda Rajapaksa Fathimath Dhiyana Saeed 5,130,746 km2 (1,980,992 sq mi) http://www.saarc-sec.org/

WHAT IS SAARC?
The South Asian Association for Regional Cooperation (SAARC) is an 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 15

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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 (8).

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 anothers 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

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

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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. 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 celebrate the 25th SAARC Charter Day, 2009 in Kathmandu 15

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ACTIVITIES OF SECRETARIAT

SECRETARIES GENERAL
Abul Ahsan Kant Kishore Bhargava Ibrahim Hussain Zaki Yadav Kant Silwal Naeem U. Hasan Nihal Rodrigo Q.A.M.A. Rahim Lyonpo Chenkyab Dorji Sheel Kant Sharma January 16, 1987 to 15 October 1989 October 17, 1989 to December 31, 1991 January 1, 1992 to December 31, 1993 January 1, 1994 to December 31, 1995 January 1, 1996 to December 31, 1998 January 1, 1999 to January 10, 2002 January 11, 2002 to February 28, 2005 March 1, 2005 to February 29, 2008 March 1, 2008 to present

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 15

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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

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

The council
Council of ministers

ORGANIZATION STRUCTURE OF SAARC

Standing Committee
Programming Committee Technical Committee
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THE COUNCIL REPRESENTATIVES

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 FUNCTION OF COUNCIL OF MINISTERS

It reviews the functioning Of 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

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STANDING COMMITTEE REPRESENTATIVES: It consists of Foreign secretaries of members governments MEETINGS : It is uncertain Meeting will be held whenever there is a necessary FUNCTIONS OF STANDING COMMITTE

PROGRAM COMMITTEE REPRESENTATIVE: It includes the senior officials of the member Governments

Functions of Technical TECHNICAL COMMITTEE Committee

REPRESENTATIVE: It comprises the representatives of all countries.
Formulating Projects & programmes in their respective areas Monitoring & Implementing Projects
Submitting reports to the Standing Committee via the Programme Committee

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TECHNICAL COMMITTEES OF SAARC

CHARTERS OF SAARC
SAARC Charter (Signed in Dhaka on 08th December 1985) SAARC Social Charter (Signed in Islamabad on 04th January 2004)

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SAARC Social Charter

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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; 15

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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 on matters of common interest; and 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 15

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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.

Lanka.

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

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 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. 15

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SAARC 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. Myanmars 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

1st 2nd 10t 3rd h 11t 4th h 5th 12t 6th h 13t 7th h 8th 14t 9th h 15t h 16t h No. 1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th 11th 12th Location Dhaka Bangalore Kathmandu Islamabad Mal Colombo Dhaka New Delhi Mal Colombo Kathmandu Islamabad Date 78 December 1985 1617 November 1986 24 November 1987 2931 December 1988 2123 November 1990 21 December 1991 10-11 April 1993 24 May 1995 1214 May 1997 2931 July 1998 46 January 2002 26 January 2004 Dhaka Bangalore Colombo Kathmandu Kathmandu Islamabad Mal Islamabad Colombo Dhaka New Delhi New Delhi Mal Colombo Thimphu December 78, 1985 November 1617,1998 July 2931, 1986 November 24, 1987 January 46, 2002 December 2931, 1988 November 2123, 1990 January 26, 2004 December 21, 1991 November 1213, 2005 April 1011, 1993 May 24, 1995 April 34, 2007 May 1214, 1997 August 13, 2008 April 2829, 2010

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SAARC 1213 November 2005 34 April 2007 13 August 2008 2829 April 2010 November 2011 (Planned)

SAARC PREFERENTIAL TRADING AGREEMENT

The Agreement on SAARC Preferential Trading Arrangement (SAPTA) was signed on 11 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: 1. overall reciprocity and mutuality of advantages so as to benefit equitably all Contracting 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; 2. negotiation of tariff reform step by step, improved and extended in successive stages through periodic reviews; 3. recognition of the special needs of the Least Developed Contracting States and agreement on concrete preferential measures in their favour; 4. 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.

Product Areas (scope)

All raw materials

Semi finished products

Finished goods

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SAARC YOTH 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 Salek (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)

Web References

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SAARC

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