Introduction

South Asian Association for Regional Cooperation hereinafter referred as SAARC. When it
was created it has seven members initially. The idea of cooperation in South-Asia was
discussed in at least three conferences: the Asian Relations Conference held in New Delhi on
April 1947; the Baguio Conference in the Philippines on May 1950; and Colombo Powers
Conference held in Sri Lanka in April 1954.In ending years of 1970s, seven countries which
includes Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka agreed upon
this creation of trade bloc and to provide a platform for the people to work altogether in a
good spirit. In 2005 Afghanistan began negotiating to enter SAARC. It is a central Asian
country and there was a debate of its South-Asian identity. Afghanistan joined SAARC in
2007 formally. In SAARC there are areas of cooperation, they are agriculture and rural
development, Biotechnology, Culture, Economic and trade, Education, Energy, Environment,
Finance, Funding mechanism, ICT &Media, poverty alleviation, Security aspects, Social
Aspects, Social Developments, Tourism. India is the biggest country in area amongst all. The
SAARC countries covers 3% of the world area and 21% of the world population. It was
founded in Dhaka. Its Secretariat is situated in Kathmandu, Nepal. In India 2 nd, 8th ,14th
summit was held. In Maldives 17th summit was held. In Nepal 18th Summit was held. The 19th
Summit was going to be held in Pakistan which was cancelled because of URI Attack in
November 18. Saarc maintains permanent diplomatic relations at United States as an observer
and has developed links with multilateral entities, including European Union.
Objectives
1. To study about the need or historicity of South Asian Association for Regional
Cooperation.
2. To study area of cooperations discussed in this regional cooperation.
3. To know what were the reasons of failure or divesting position of SAARC.
4. To explore the status of India or relation of India and SAARC.
Research Methodology
The Researcher has used Doctrinal Method of Research. The researcher has used the books
related to international treaties and most of the articles are taken from the website of SAARC.
The data collected from different articles and book have been compared and combined to
complete the essence of the research topic.

1
Historicity of SAARC
South Asian Association for Regional Corporation hereinafter called as SAARC is a
geopolitical union intergovernmental organization of nations in south east Asia. Its initial
members are India, Maldives, Bangladesh Bhutan, Sri Lanka, Pakistan and Nepal. It was
established in 1985 and this idea had first come in the mind of president of Bangladesh Ziaur
Rehman. At that time Rajiv Gandhi was the Prime Minister of India. In April 2007
Afghanistan became the eight members of SAARC. The main objectives of forming it were1:
 for the promotion of well-being of people of south-Asia and to meliorate their quality of
life.
 for the expedition of economy
 to build up and strengthen collective self-reliance among these countries
 for the contribution of mutual trust, understanding and acknowledge one another’s
problem
 to endorse mutual assistance in social, economic, cultural, technical and scientific fields.
 To enhance cooperation with other developing countries
 For the cooperation among themselves in international forums on matters of common
interest
All these objectives are mentioned in the article I of the Charter.
In 1995 Saarc Preferential Trading Arrangements was made by Saarc which is commonly
known as SAPTA and it was a kind of first step towards creation of trade bloc in the region
of South -Asia. In July 2006 South Asian Free Trade Area (SAFTA) was formed. With
growing openness amongst themselves there would be higher production, expansion of
labour, intensive exports, increased employment, increased wages and thereby helping in
reducing poverty. The charter of SAARC includes ten articles. The first talks about the
objectives of SAARC and the last deals with the general provisions. Article VIII of the
charter talks about the Secretariat. The Secretariat was set up in Kathmandu on January 17,
1987. The current secretary General of SAARC is Amjad Hussain B Sial who is a diplomat
from Pakistan.2
If we look on the summits of SAARC, the authority which makes the decision of holding the
meeting is the head or the highest authority. The conclusion of the summit is Declaration. In
this there are opinions and mandates for the leaders of respective states to enhance and

1
Article 1, SAARC Charter
2
South Asian Association for Regional Cooperation http://saarc-sec.org/about-saarc (Visited on 14/02/2020)

2
reinforce regional cooperation in areas specified among them. The first summit was held in
Dhaka, on 7th and 8th of December, 1985. The 19th summit was not held and the 20th SAARC
Summit is scheduled to be held in Pakistan and current chair is Nepal. There are nine
observer countries of SAARC. They are USA, Australia, China, Iran, Japan, Mauritius, South
Korea, The European Union, Myanmar. Observer countries are assiating in some if the areas
as communication, public health, economic and environmental issues. Myanmar is trying to
get upgraded from observer to full member and these countries attends the initial and final
days of SAARC Summit.
SAARC DEVELOPMENT FUND (SDF)
The idea of SDF was proposed in the 13th Summit which was held in Dhaka,2005 to
substitute SADF. SDF was inaugurated on April 28 th, 2010. The main objective for merging
was to reduce poverty, for economic growth, environmental protection. It is headquartered in
Thimphu, Bhutan. The objectives of SDF were to work for the well-being of SAARC, to
promote economic growth, to reduce poverty, for social progress, to give a quality life to the
people of that region. The management body of SDF is the Government Council. The
member states are represented by the respective Finance Minister. The fund is guided in the
meeting of General Council which occurs once in year and it is guided by the board of
directors which has eight representatives.3 Some of the activities of SDF:
The hand-training programme of the group of people, a farmer’s group in Salinggeog,
MongarDzongkhag was there. They grow fruits as papaya, guava, banana, pineapple etc in
these places. The training was funded by SDF by a way of project named “Post-Harvest
Management and Value addition of fruits in production catchments in SAARC countries.”
There is participation of SABAH Nepal in several marketing events in order to enhance crafts
range and other cardamom products range. Under SABAH Nepal there was training of
Homebased workers on operating Milk Fat Testing Machine was operated at Khawa CFC,
Kavre.4 There was a Village Action Plan under Wash Project which includes training of
trainers to test the quality of water, health and hygiene, repairing of hand pump etc. Under the
SAHAB Bhutan there was relocation of Tashigang CFC outlet. The aim for doing relocation
was for the better production distribution and to upscale the scales target. There is also
programme which was funded by SDF empowering the women homebased workers in

3
http://www.sdfsec.org/ (Visited on 19/02/2020)
4
http://www.sdfsec.org/about-sdf (Visited on 24/02/2020)

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Bhutan. It also held asn exhibition to make TFC vibrant and promote SABAH brand by
making up the story by weaving, dying and completing that is the finishing of the product.5
SAPTA AND SAFTA
Regional integration can be achieved fully only when the various stags of and one of them is
related with the trade, which can be called as Regional Trade Bloc (RTB). Preferential Trade
Agreement is something through which the member countries by preference open up their
goods and services for the co-member countries of the region. Free Trade Area, by which
goods and services are fully opened up among the member- countries of a particular regional
organisation. South Asia can be propelled faster to find its rightful place in the world states
develop as an integrated economy. Economic Integration has the highest transformative effect
and thus economic impact in the lagging and peripheral areas of the region.6
International Economic Environment are changing fast. Liberalization, Globalization and
Rationalization is taking rapidly in the world economy, in which so far South Asia is lagging
behind. So, in this process SAPTA is considered to be a process of trade cooperation among
the SAARC countries. It gravels the way for intensive trade cooperation. South Asian
Preferential Trade Arrangement hereinafter called as SAPTA was launched in the sixth
summit of SAARC held in Sri Lanka on December 21st, 1991. Article 3 of this agreement
states that the basic principle of SAPTA is that it will be applicable mutually in such a way to
benefit equitably to the state parties. The components and the Additional measures for the
preferential agreement are mentioned in Article 4 and Article 6 of the agreement. SAPTA
will include Tariffs, para-tariffs, Non- tariffs and Direct Trade measures. By inclusion of all
these facets in the agreement will promote the trade expansion and trade may become a
dominant sector in South Asian Economies. The end what was thought that a preferential
trade agreement will lead to a rapid economic development as it will increase the overall
productivity and efficacy of South Asian area.7
Formal agreements have been less effective than changes in macroeconomic policies, such as
the adoption of market exchange rates. South Asian Free Trade Area (Agreement) hereinafter
SAFTA. In the 12th SAARC Summit which was held in Islamabad on January 4 to January 6,
2004. SAFTA was signed in this summit with an aim to pare the barriers among South Asian

5
Ibid
6
Department of Commerce http://www.doc.gov.lk/index.php?
option=com_content&view=article&id=31&Itemid=156&lang=en
(Visited on 24/02/2020)
7
From SAFTA to SAFTA : Gravity Analysis from SAPTA TO SAFTA
https://www.researchgate.net/publication/229050481_From_SAPTA_to_SAFTA_Gravity_analysis_of_South_
Asian_free_trade (Visited on 24/02/2020)

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Countries. It is the next phase of regional trading bloc followed by South Asian Preferential
Trading Agreement but the desired result is not yielded from this. Its impact to be felt by
2013 when tariffs in the region expectedly would come down to between 5-0%. The member
countries worked for simplification of the procedures for intra-region banning. For the
removal of restrictions on investment by member countries within the region. Lifting of
foreign exchange restrictions for the member countries, simplification of procedures for visa
for regional movement. Tariff free Items have not increased in the regions for trading purpose
across borders in the Region. Intra-regional investments are also very meagre. The less
developed countries of the region are yet to see the benefits from it. Progress under SAFTA,
opposed with the developments under WTO, will also have consequences not only for
international and intraregional trade in the coming years, but will also have interesting
fallouts in the regional economic and political fields. The SAFTA tariff reduction
program stipulates average weighted tariff of not more than 20% by the region’s od more
develop economies as India, Pakistan and Sri Lanka within two years of the entry into force
of the agreement.
SAARC VISA EXEMPTION SCHEME
This scheme was decided in the 4 th Summit of SAARC which was held in 1988, at Islamabad
on 29-31 December. It was mutually decided by the state parties to consign aa travel
document to certain people and exonerate them from visas and other necessary documents.
This privilege is given to Dignitaries, Sportspersons, Parliamentarians, Journalists,
Businessperson, Senior officials and Judges of High Courts. The highest authority of SAARC
i.e. SAARC Chamber of Commerce and Industry enjoys this privilege.8
SAARC Arbitration Council
This is made for the solving if there is any dispute in trade, investment or commerce sector
and it is done through the mode of Arbitration. The parties have to themselves pay for this.
This was established on July 2nd, 2007 in its 13th summit. The intervention of any judicial
body in not tolerated. It was established in Pakistan. 9Its vision is to set up an Arbitration
Forum in the area of South-Asia. Its mission is to give equitable, fair, cheap and arbitrary and
conciliatory services to solve trade disputes. Its objectives were to give a legal framework
through conciliation and arbitration for the commercial purposes.

8
SAARC CHAMBER OF COMMERCE & INDUSTRY APEX BUSINESS ORGANIZATION OF SAARC
www.saarcchamber.org/index.php?option=com_content&view=article&id=88&Itemid=471 (Visited on
19/02/2020)
9
http://saarc-sec.org/digital_library/detail_menu/agreement-for-establishment-of-saarc-arbitration-council
(visited on 19/02/2020)

5
The Member states are Democratic Socialist Republic of Sri Lanka, Federal Democratic
Republic of Nepal, Republic of Pakistan, Republic of India, The kingdom of Bhutan, Islamic
Republic of Afghanistan, People’s Republic of Bangladesh, Republic of Maldives.10
Areas of Cooperation
Human Resource Development and Tourism
As a major part of economic growth tourism was recognized by SAARC as one of the mode.
In the second summit, the leaders thought about this issue and took a solid step to facilitate
tourism. The SAARC Action Plan on Promotion of Tourism which was adopted by the
second meeting held in Bangladesh, it emphasizes on private sector of this region for the
promotion of Tourism in the region and also at international level.
SAARC APEX BODIES
1. SAARC Chamber of Commerce & Industry (SCCI)
2. SAARC LAW
3. South Asian Federation of Accountants (SAFA)
4. Foundation of SAARC Writers and Literature (FOSWAL)
5. South Asia Foundation (SAF)
6. South Asia Initiative to End Violence against Children (SAIEVAC)
SAARC Recognized Bodies
1. Association of Management and Development Institutions in South Asia (AMDISA)
2. South Asian Association for Regional Cooperation of Architects (SAARCH)
3. Federation of State Insurance Organizations of SAARC Countries (FSIO)
4. SAARC Diploma Engineers Forum (SDEF)
5. SAARC Surgical Care Society (SSCS)
6. South Asian Free Media Association (SAFMA)
7. SAARC Women’s Association (SWA)
8. Self Employed Women Association (SEWA)

Conclusion
SAARC was born out of the functionalist optimism that economic and technical cooperation
will usher in an era of political stabilization and harmony. This has proven to flounder
10
www.sarco.org.pk/about-us/ (Visited on 19/02/2020)

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embarrassingly since the existence of SAARC. The motive for making SAARC was not
driven by economic or political concerns. In the 80s, South Asia was the only region without
any regional organization. This dilemma forced the birth of SAARC into a region that did not
appreciate it or was willing to internalize it.
The often delay or cancellation of SAARC summits, the fact that the last summit has been
postponed for five years now is clear example of the lack of political will to carry the
organization to the future it proposed. SAARC insists on unanimous decision making while at
the same time it does not offer its platform for resolution of bilateral disputes. In a region
which has seen many full-blown inter-state wars these two SAARC 14 conditions posit as a
oxymoron. Only one state can veto a project due to the unanimity clause. Pakistan and India
have been at polar opposites driving the stalemate of the organization. Pakistan has
maintained a strategic distance from India, pulling out of projects to obtain leverage on India
in the Kashmir Dispute. Pakistan insists on charter amendment to allow bilateral issues
resolution mechanism. India stands firmly against it.
The power asymmetry, lack of a common strategy and absence of a regional identity has
pushed the organization into an inevitable downward spiral of security dilemmas. Smaller
states remain wary of Indian dominance while India has been batting off China’s entry into
the organization which will counter balance its influence. As a general rule, the economically
stronger states have to lead and pave the path to integration. SAFTA set out the provisions till
way as well. However, the non-compliance of India and Pakistan has held hostage the entire
agenda. The general consensus is thus that unless and until there is a shift from security to
human security in these country’s priorities, SAARC will remain a ‘zombie’ organization:
barely functioning.