ECONOMICS PROJECT
TOPIC: Study in detail the South Asian Association for
Regional Cooperation (SAARC) and its impact on
Indian economy
AVNI KAJARIA
XI -D
REF NO:1044
AY:2023-24
SOUTH ASIAN ASSOCIATION FOR REGIONAL
COOPERATION (SAARC)
1.1 SAARC
~The SAARC’s full form is South Asian Association for Regional Cooperation.
~ It is an association of the countries in the Indian subcontinent, eight Member
States: Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and
Sri Lanka.
~It was established on 8th December, 1985 in Dhaka, Bangladesh
~The South Asian Association for Regional Cooperation has a charter
SAARC
https://www.aidiaasia.org/images/contents/a0Ds8-saarc-image.jpg
1.2 The Charter of SAARC
~The charter starts with “we the heads of state or govt”. It consists of the
objectives, principles, and the members of the SAARC
1.2.1 Objectives
According to the SAARC Charter, the Association's objectives are:
● to promote the welfare of South Asian peoples and to improve their
quality of life
● to accelerate economic growth, social progress, and cultural
development in the region and to provide all individuals with the
opportunity to live in dignity and to realise their full potentials
● to promote and strengthen collective self-reliance among South Asian
countries
● to encourage active collaboration and mutual assistance in economic,
social, cultural, technical, and scientifc felds
● to strengthen cooperation with other developing countries; to strengthen
cooperation among themselves in international forums on matters of
mutual interest
● to cooperate with international and regional organisations with similar
aims and purposes.
1.2.2 Members
The SAARC is made up of the following members:
1. HEAD OF THE STATE/GOVT- meet once a year or as needed
2. COUNCIL OF MINISTERS-
a) they convene twice a year or as member states see essential.
b) The Foreign Ministers of the Member States will form a Council of
Ministers with the responsibilities of development of the ASSOCIATION's
policy; evaluation of the ASSOCIATION's progress in cooperating
3. STANDING COMMITTEE-
a) they meet as frequently as needed
b) The Standing Committee, composed of the Foreign Secretaries, shall be
responsible for general monitoring and coordination of the cooperation
programme; approval of projects and programmes, as well as the
mechanisms of their fnance; and setting of inter-sectoral priorities.
4. SECRETARIAT -
The secretariat plays a crucial role in facilitating the implementation of
SAARC's decisions and programs. His functions are-:
1. Administrative assistance is provided by the Secretariat for
diferent SAARC conferences, including the Summit, Council of
Ministers, Standing Committee, and specialised organisations. It
aids in the organisation of these meetings by preparing agendas,
distributing papers, and ensuring adequate interaction between the
participating nations.
2. Coordinating and Monitoring: The Secretariat oversees and
organises the execution of SAARC actions and programmes. It
serves as a hub for participating nations to share knowledge,
exchange perspectives, and cooperate on regional endeavours. It
keeps track of the status of numerous activities and assists in
overcoming any hurdles or issues that may develop during
execution.
3. External Relations: The Secretariat represents SAARC in its
dealings with global organisations, participant countries, and
other regional organisations.
4. Financial Administration: The Secretariat is in charge of SAARC's
fnances. It develops and maintains the body's budget, provides
fnancial responsibility, and enables resource mobilisation for
SAARC's programmes and operations. It also oversees SAARC's
fnancial activities, purchasing procedures, and agreements.
H.E. Esala Ruwan Weerakoon of Sri Lanka assumed office of the
Secretary General of the South Asian Association for Regional
Cooperation (SAARC) on 01 March 2020.
MEETINGS
https://www.saarc-sec.org/images/2020/09/24/cce19ty7.jpg
VIRTUAL MEETINGS
https://www.saarc-sec.org/images/pressrelease/2020/25-11-2020-001.jpg
1.3 The Work Of SAARC
~The SAARC have regional centres in diferent countries
1.3.1 Areas Which The SAARC Work On
1. Trade and Investment:
a. SAARC aims to enhance trade and investment cooperation
among member countries.
b. It has implemented the South Asian Free Trade Area (SAFTA),
which aims to reduce trade barriers and promote regional trade.
2. Agriculture and Rural Development:
a. SAARC promotes collaboration in agriculture, including
technology transfer, research and development, and sharing of
best practices to improve agricultural productivity and food
security.
3. Energy Cooperation:
a. SAARC facilitates energy cooperation among member countries to
address the region's energy challenges.
b. It focuses on promoting energy trade, exploring renewable
energy sources, and developing cross-border energy
infrastructure.
4. Transport and Connectivity:
a. SAARC encourages the development of transport infrastructure
and connectivity among member countries.
b. It aims to enhance road, rail, air, and maritime connectivity to
facilitate trade, tourism, and people-to-people exchanges.
5. Social Development:
a. SAARC promotes cooperation in social sectors such as
healthcare, education, poverty alleviation, and gender equality.
b. It aims to improve the overall quality of life in the region.
6. Cultural Cooperation:
a. SAARC emphasises cultural exchanges, promoting mutual
understanding and appreciation of the diverse cultures within
the region.
b. It organises cultural events, festivals, and exhibitions to foster
cultural ties among member countries.
https://www.researchgate.net/publication/318093613/fgure/fg1/AS:511600802766848@1498986544638/
Barriers-to-the-Prospective-Role-of-SAARC-Source-Authors-calculations-based-on.png
1.3.2 Internships
~Through educational and occupational discussion and study, the SAARC
additionally provides internships with the purpose of increasing knowledge
about the South Asian Association for Regional Cooperation (SAARC) and
making it renowned in and outside South Asia.
~ As a result, through ofering internships in the SAARC Secretariat in
Kathmandu, Nepal, the SIP hopes to foster and facilitate study and research on
the Association and its operations.
https://www.google.com/search?q=internships+of+saarc&rlz=1C5CHFA_enIN998IN1000&source=lnms&tb
m
=isch&sa=X&ved=2ahUKEwjW78Wh46j_AhXR6zgGHQGAC2oQ_AUoAnoECAEQBA&biw=1792&bih
=1009&d pr=2&safe=active&ssui=on#imgrc=5CTMAHZo_g6hQM
1.3.3 SAARC Website
~The SAARC have a website where they provide information about the
association, the work they do, the Charter, their structure, internships and latest
news
~The SAARC have a digital library, they talk about statements, publications and
summit declarations
1.4
Impact of SAARC on The Indian Economy
The impact of SAARC on the Indian economy are-:
1. Trade and Investment-
a. The SAARC provides member countries with a platform for
enhancing trade and investment within the region.
b. Increasing intra-regional trade can signifcantly beneft India, the
largest economy in South Asia. Intra-SAARC trade, including
trade between India and its neighbours, has been limited by trade
barriers, political tensions, and infrastructure constraints.
2. Market Access-
a. Indian goods and services have access to a large market through
SAARC.
b. India can expand its market presence in neighbouring countries
as member countries reduce tarifs and trade barriers. Politics and
non-tarif barriers have slowed progress in this area.
3. Regional Connectivity-
a. The SAARC initiative is aimed at improving regional connectivity
through improvements in infrastructure, such as roads, railways,
and ports.
b. Trade and tourism can be boosted as a result of improved
connectivity, which facilitates the movement of goods, services,
and people.
4. Economic Cooperation-
a. SAARC provides a forum for fnancial discussion and
collaboration, covering agriculture, tourism, industry, and
investment.
b. Indian economies may beneft from the sharing of best practices,
joint projects, and policy coordination that can arise from these
discussions.
https://www.elibrary.imf.org/view/journals/001/2012/056/article-A001-en.xml
1.5 Achievements & Difculties faced by SAARC
1. Achievements:
a. SAARC has made signifcant progress in a variety of
domains, including commercial assistance, interaction
between cultures, higher education, and disaster
prevention.
b. It has aided in the expansion of trade between regions,
the facilitation of academic cooperation, and the
strengthening of emergency response procedures.
2. Difculties:
a. SAARC sufers difculties as a result of political divisions,
interpersonal tensions, and an absence of confdence
amongst member nations.
b. Historical hostilities, for example, between the nations of
India and Pakistan have hampered regional collaboration.
c. Processes for making decisions and contract execution
have also been delayed, reducing the corporation's efciency.
1.6 Future Prospects
● SAARC's future prospects depend on overcoming existing
challenges and revitalising cooperation among member
countries.
● Initiatives like the South Asia Economic Union (SAEU) have
been proposed to deepen economic integration and address
common challenges.
● Strengthening people-to-people contacts, addressing security
concerns, and promoting trust-building measures are
essential for SAARC's success in the future.
https://media.licdn.com/dms/image/C5112AQEgGtJcsZClJA/article-cover_image-shrink_600_2000/0/1520212828159?e=2147483647&v=beta&t=nU7
GY3uSJuL9q-GCt8J9T8lDoOS9xp4HYXHQw_SgVB0
BIBLIOGRAPHY
1. https://www.saarc-sec.org/index.php/about-saarc/saarc-charter
2.
https://www.saarc-sec.org/index.php/about-saarc/saarc-recognized-bo
dies
3. https://www.saarc-sec.org/index.php/resources/saarc-internship-pro
grammme
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