SAARC

 

Proposal by ZIA UR RAHMAN(1980)

Formed in 1985, 8th December in Dhaka

Members:- 

India 

Bangladesh 

Bhutan 

Nepal 

Pakistan 

Sri Lanka 

Maldives and 

Afghanistan (2007)

SAARC GOALS-

 1) Promote Economic cooperation among members.

2) Facilitate economic growth

3) Elevation of poverty.

4) Respect the territorial integrity of each other states and non interference in internal affairs.

Weakness of SAARC

1) Trust deficit among Nations or core members.

2) unresolved border disputes and trade barriers.

3) SAARC is a regional organisation with a negative mindset, formed by smaller neighbours of India to form a coalition against India; and to oppose India.

4) There has been huge asymmetry in terms of size and power among members, which is not found in other regional cooperation.

5) India and Pakistan rivalry is a major reason for failure of SAARC to emerge as economic unit. Economies where inward looking, they are supplementary rather than complementary.

6) South Asia is home to largest number of poor, destitutes, malnourished people. All countries are vulnerable and cannot handles situation all alone.

FAILURE OF SAARC.

According to Kaushik Basu, SAARC did not have a promising childhood but can expect a better adulthood, the reason is environment is changing-

1) Economies are opening up

2) Democracy is strengthening.

3) Located near economically vibrant region.

4) India is taking steps to normalise relationships.

5) Civil society is strengthening.

6) Since India and Pak acquired nuclear weapons, international communities getting serious to normalise India Pakistan relations.

SHIFT FROM SAARC TO SAFTA.

It is a free trade agreement emerged in 2004 as agreement. SAARC countries agreed to create SAFTA at Islamabad summit in 2004.

The main objectives were-

1. Commitment to create SAFTA.

2. COMMITMENT TO FIGHT TERRORISM

3. COMMITMENT ON POVERTY ELEVATION.

Before SAFTA, South Asian countries entered into South Asia preferential trading agreement SAPTA in 1995 ( 10 years after SAARC).

The objective of SAPTA= Poverty elevation through intra regional trade

Achievement= none in increasing intra regional trade or poverty alleviation.

Failure of SAPTA:-

1.. South Asia is region where politics takes the front seat and economy the back seat.

2... it is the least ambitious trading agreement

3.. there was no binding commitment or time bound agreement 

4.. no disputes settlement mechanism as well as no clarity in rules and regulations.