SAARC

Topic:
SAARC (South Asian Association of Regional Cooperation)
- Past, Present and Future Prospects
Kanwal Batool Naqvi
1
2
SAARC
1: HISTORY
1977-85: Bangladesh Contribution
1985: Charter-December 08, 1985
2012: Economic Union Dream?
2015: Single Currency?
3
SAARC
2: PRINCIPLES
Focus: Cooperation in SAARC
- Bilateral
- Multilateral
1. Sovereign equality
2. Territorial integrity
3. Political independence
4. Non-interference in internal affairs
af other states and mutual
benefits
4
SAARC
3: OBJECTIVES
1. 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

5
SAARC
4: SAARC-Current Members
1. Afghanistan (Number 13, 2005)
2. Bangladesh
3. Bhutan
4. India
5. Maldives
6. Nepal
7. Pakistan
8. Sri Lanka
Share of Population in the World: 23.19%
Based on: World Development Report 2012.
6
SAARC
6: SAARC-Summits
S. No. Location Date of Summit
1
st
Dhaka 7-8, December, 1985
2
nd
Bangalore 16-17 November, 1986
3
rd
Kathmandu 2-4 November, 1987
4
th
Islamabad 29-31 December, 1988
5
th
Male 21-23 November, 1990
6
th
Colombo 21
st
December, 1991
7
th
Dhaka 10-11 April, 1993
8
th
New Delhi 2-4 May, 1995
9
th
Male 12-14 May, 1997
10
th
Colombo 29-31 July, 1998

7
SAARC
6: SAARC-Summits
S. No. Location Date of Summit
11
th
Kathmandu 4-6 January, 2002
12
th
Islamabad 2-6 January, 2004
13
th
Dhaka 12-13 November, 2005
14th New Delhi 3-4 April, 2007
15
th
Colombo 1-3 August 2008
16
th
Thimphu 28-29 April, 2010
17 Male November 10-11, 2011
8
SAARC
WORK PACKAGES
1. India
1. Business information data networking
2. HRM
3. S & T
4. Social dimension in business
development
2. Pakistan
1. Trade
2. Investment
3. Sri Lanka
Women Entrepreneurship
4. Bangladesh
Telecommunication
5. Nepal
Travel & Tourism Maldives-tourism
6. Bhutan & Nepal
Energy
10
9
SAARC
8: 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
10
SAARC
10: UNIQUE FEATURES
1. The oldest ancient living civilizations
2. 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

11
SAARC
12: CHALLENGES
1. Poverty
2. Unemployment
3. Literacy
4. Governance
5. Education
6. Development
7. Enabling environment
8. Defense expenditure













ECONOMIC CHALLENGES AND
OPPORTUNITIES IN SAARC REGION








ECONOMIC CHALLENGES FOR PAKISTAN
The Pakistans economy is currently passing through the
most difficult phase of its economic history.

Once a robust economy, with economic growth over 6%
of GDP, now it has been transformed into a fragile
economy, due to serious economic challenges, the most
important being our countrys frontline role in War on
Terror and the persistent Power and Energy Crisis
which has crippled our industrial sector.




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 a
rapidly growing population.





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%, not
enough to provide jobs to the growing labor
force. Decisive and far-sighted action is
needed to address this challenging outlook.











The IMF Mission Report points out that ENERGY PROBLEM
is the largest single impediment to higher economic
growth for Pakistan and a major factor behind
macroeconomic imbalances. For this, it has outlined a
comprehensive approach to reform to tackle these
problems.

The above observations of IMF are no doubt a Reality.

For more than three consecutive years, our country has
been experiencing low growth, which has almost
stagnated the per capita income level. This has
aggravated poverty and worsened unemployment rates



The Challenges that our Country faces today do
not commensurate with the abundant and vast
potential that it possesses.

Pakistan offers huge potential and
opportunities 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


Pakistan is worlds 2
nd
largest producer of water,
buffalo meat and milk

Pakistan is worlds 3
rd
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

Prospects and Economic Revival Efforts
The economic growth of Pakistan stood at 3.7% in FY
2012 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 Economy says that this performance is
notable, given the following challenges:

Considerable damage to cotton crop due to
floods
Ongoing energy shortages;
Rise in international oil prices; and
Security concerns.

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 inflation
and 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
the persistently high fiscal deficit
Pakistan must overcome its economic challenges as
it has vital role to play to bring economic prosperity
in SAARC Region
SAARC 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.
The Existing Potential in the
South Asian Region
South 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 .
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.

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.
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 and
challenges common to all member nations.

I would like to outline few of the key
challenges and issues that are creating
barriers in the way of increasing flow of trade
and investment among the SAARC Countries



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


The above challenges need to be
dealt on preferential basis by the
SAARC countries, especially the two
big nations PAKISTAN and INDIA.

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 the
list 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.

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 more
Foreign 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.

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 their
offices in each others country.

.
I would like to highlight two other issues,
which are not directly concerned with
economy, trade or investment, but these
issues or challenges have direct bearing on
all of them. These challenges are Food
Security Issues and Natural Disaster



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.



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.
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.
(1) Cooperation in Services

Telecommunication
Banking
Energy
Transport
Software services
(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.
(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.



(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 integrated
future business community. There is strong need for
youth empowerment and focus on business
leadership for South Asian economic development.

(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.
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?


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.

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.

South Asian Regional Standards
Organisation (SARSO)




Chandan Bahl
Scientist E(International Relations)
Bureau of Indian Standards
India
Disclaimer: This is not a presentation by SARSO but it is
presentation of factual information on SARSO by
BIS
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.
TRADE AND REGULATORY COOPERATION
With the increase in non-tariff barriers in trade, countries/
regions need to look at ways to combat them and thus
Regulatory Cooperation assumes importance.

Harmonization of technical standards and mutual
recognition of conformity assessment procedures between
trading partners are forms of Regulatory Cooperation that
helps in removing the technical barriers to trade and
facilitates flow of goods and services in the region.

ESTABLISHMENT OF SARSO- BACKGROUND
SAARC Committee on Economic Cooperation (CEC) -
established in 1991, for identifying and implementing
programmes in the core area of economic and trade
cooperation.
The Sub-Group on Standards and Quality working under the
auspices of the CEC in its 2
nd
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 Regional
Standards Body
SSCB comprised of a member from each of the National
Standards Body of the Member States
ESTABLISHMENT OF SARSO- BACKGROUND
SSCB at its 3
rd
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
SARSO AGREEMENT
The Agreement on the Establishment of the South Asia Regional
Standards Organization (SARSO), was signed at 15th SAARC Summit held
in Colombo, Sri Lanka on 2nd - 3rd August, 2008, by the Foreign
Ministers 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 with
effect from 25 August 2011 with issuance of Notification to this effect by
the SAARC Secretariat.

SARSO is to be located in Dhaka, Bangladesh

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

OBJECTIVES OF SARSO
To promote and undertake harmonization of national
standards of the SAARC Member States with a view to
removing TBT and facilitate flow of goods and services in
the region

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

To encourage the use of international standards published
by ISO, IEC, etc. by way of adoption, where appropriate, as
SAARC Standards
OBJECTIVES OF SARSO (Contd..)
To encourage exchange of information and expertise among
the NSBs of the Member States in the fields of
Standardization and Conformity Assessment
To facilitate capacity building among the Member States in
the fields of Standardization and Conformity Assessment by
way of training, workshops, seminars, etc
To act as a source of information for the Member States on
standards, regulations, conformity assessment
To present the common interests of the Member States in
the various international standardization organisations
OBJECTIVES OF SARSO (Contd..)
To establish mutually beneficial cooperation with the relevant
international and regional organizations as per relevant SAARC
guidelines

To promote MRAs on Conformity Assessment Procedures among
the Member States

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

To explore the possibility of having a common mark of conformity
among the Member States

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

STRUCTURE OF SARSO
The Organisation shall comprise of:
Governing Board
Technical Management Board (TMB)
Director-General; and
Secretariat.

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.
Functions of Governing Board (GB)
GB may create and assign other entities, as and when
required, for the smooth operation of the activities of SARSO

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

GB may also give directives and provide guidance to the
other organs of SARSO including TMB and Sectoral Technical
Committees.
Technical Management Board (TMB)
consists of one technical expert nominated by each NSB of
the Member States.
responsible for the planning, coordination and monitoring of
all the technical work of SARSO.
may establish Sectoral Technical Committees (STC) as and
when deemed necessary for development of harmonised
standards
scope and programme of work for each STC under TMB shall
be approved by GB
shall meet at least annually preferably immediately before
GB meetings and submit its reports to GB

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
ON GOING WORK
Development of SAARC Standards
The following products have been identified for
harmonization/development of SAARC Standards:
Sugar Skimmed Milk Powder Biscuits
Instant Noodles Vegetable Ghee Electric Cables
Textile Fabric Jute Cement Steel
Tubes Structural Steel Toilet Soap

Sector based approach adopted for harmonization/ development
of SAARC standards with setting up of Sectoral Technical
Committees
(i) Food and Agricultural Products
(ii) Electrical, Electronics, Telecoms and IT
(iii) Jute, Textiles & Leather
(iv) Building Materials
(v) Chemical and Chemical Products

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
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


EXPECTED BENEFITS INDIAN PERSPECTIVE
Harmonization of national standards of the Member States
would help in removing the technical barriers to trade and
facilitate flow of goods and services in the region
Facilitate in projecting common interests of the Member
States in the various international standardization
organizations
Facilitate acceptance of results of conformity assessment
amongst the countries in the region, and
Facilitate capacity building among Member States