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Functions of SAARC

o SAARC seeks to advance social advancement, cultural advancement, and economic


prosperity throughout South Asia.
o All member countries should pursue SAARC’s goal of maintaining regional peace
and stability.
o SAARC allows countries to grow naturally while increasing people-to-people
interaction and cultural cohesion.
o SAARC ensures enhanced cooperation among its member nations to meet the
difficulties posed by rising food and energy costs, recurring calamities, and climate
change for geographic, economic, cultural, and other strategic reasons.

Specialized bodies of SAARC

The South Asian University (SAU), the SAARC Development Fund (SDF) Secretariat, the
SAARC Arbitration Council (SARCO), and the SAARC Regional Standards Organization
(SARSO) are new SAARC organizations that have distinct goals and organizational
frameworks than the Regional Centers.

SAARC Development Fund (SDF)

o The SAARC Development Fund (SDF) was established as a comprehensive


funding structure by the 13th SAARC Summit.
o It was established with the main goal of sponsoring project-based collaboration.

South Asian University(SAU)

o During the 14th SAARC Summit, the SAARC Member States signed the
Agreement for establishing South Asian University.
o The SAU wants to be recognized for the degrees and certificates it grants, on par
with those granted by the national universities.

AARC Regional Standards Organization (SARSO)

o The fifteenth SAARC Summit cleared the ground for the creation of SARSO
o It aims to unify standards and foster cooperation in metrology, accreditation,
conformity assessment, etc.

SAARC Arbitration Council (SARCO)


o During the Thirteenth Summit, a deal was made about SARCO, which became
effective in 2007.
o SARCO was founded to resolve regional conflicts amicably and economically
through arbitration.

Achievements of SAARC

o SAARC Agreement on Trade in Services (SATIS): The SAARC Agreement on Trade in


Services (SATIS) adheres to the GATS-plus “positive list” strategy for liberalizing
trade in services.
o Agreement on SAARC Preferential Trading Arrangement (SAPTA): SAPTA was
signed by SAARC Foreign Ministers on April 11, 1993, during the 7th SAARC
Summit in Dhaka. The SAPTA called for incremental negotiations for better and
expanded market access.
o Agreement on South Asian Free Trade Area (SAFTA): The SAFTA was agreed during
the Twelfth Summit in Islamabad in 2004 to gradually work towards a South Asian
Economic Union (SAEU). The agreement asks for greater commercial and economic
cooperation.
o SAARC and Environment Protection: In 1987, the environment was designated as a
subject requiring urgent attention by SAARC. SAARC Environment Ministers have
convened regularly to assess progress and strengthen regional cooperation in the
environment, climate change, and natural disasters.
o Other Achievements:
o In addition to establishing an energy reserve in Pakistan, SAARC also developed a
food bank in India. An FTA is limited to products but not services like information
technology.
o Heads of State have had to shake hands and engage in conversation because of
the circumstances, institutions, and venues that SAARC has managed to establish.
o Important issues for the area have been addressed by SAARC, including a social
charter, development agreements, and even the delicate problem of terrorism
prevention.
o The transportation, energy, and food bank agreements are all significant milestones
in the right direction. One of the foundations of South Asian integration initiatives
is exchanges in research and civil society.

Areas of Cooperation

o The SAARC aims to advance the well-being of South Asians, increase communal
self-reliance, encourage proactive cooperation and mutual aid in a variety of
areas, and collaborate with global and regional organisations.
o The following areas of cooperation were decided upon by the Member States:
Importance of SAARC

o SAARC has provided a platform to member nations to meet and address significant
concerns through bilateral meetings and discussions.
o For instance, when tensions between the two are very high, India and Pakistan
would find it difficult to openly explain a meeting, but delegates from both nations
might join forces under the auspices of SAARC.
o SAARC has also made modest progress in ratifying accords with the Covid-19
problem, food security, and climate change.
o It has the ability to accomplish much more, but only if member nations cooperate
on important matters.

Impact of SAARC on Indian Economy

o The SAARC region’s size has expanded to around 7% of the world’s GDP in PPP,
more than doubling since 1980. However, this increase in the worldwide share
pales in comparison to China, which increased its global share to 16.5 percent in
2014, compared to India’s 6 percent.
o Indian engagement with SAARC nations is based on a consultative, non-reciprocal,
and result-oriented approach, concentrating on delivering benefits like improved
infrastructure, increased connectivity, stronger development cooperation in various
sectors, security, and expanded people-to-people contacts.
o Compared to the other regional organizations, SAARC has made very few
accomplishments.
o In its continuous attempts to revive the SAARC as the premier platform of regional
cooperation and economic integration, India, the region’s largest economy and
most populous nation, is both an idealist and a realist.
o Although opening a university, a food bank, and a disaster management centre
may seem like commendable initiatives at first, they ultimately don’t contribute
much to advancing the local economy.

Challenges to SAARC

o The two main SAARC members, India and Pakistan, have long been at odds with
one another. SAARC is still unable to perform as a sub-regional organisation due to
rivalry.
o Border and maritime disputes still plague the area in great numbers. Unresolved
border issues have contributed to issues with terrorism, the refugee crisis,
smuggling, and the drug trade. Cooperative relationships are still hampered by
unsolved difficulties.
o SAARC has not developed into a regional organization in the vein of the European
Union or the African Union, despite its ambitious goals.
o Internal conflicts, most notably the war between India and Pakistan, affect its
member states.
o In consequence, this has made it more difficult for it to create comprehensive trade
agreements or to effectively work together on issues like infrastructure, energy, and
security.
o Any such summits are unlikely until the problem has been settled since Pakistan is
steadfast in its backing of the Taliban and the other SAARC nations are reluctant to
accept the group.

Need for Revival of SAARC

Political, diplomatic, and military tensions jeopardize regional security and stability.
These are persistent barriers to economic and social development and threats to human
rights and freedom. These factors necessitate the revival of SAARC to withstand the
upcoming threats.

Lack of Political Will


o The bilateral concerns among the South Asian nations lead to political conflicts
that escalate in the working of SAARC.
o Persistent regional power politics, interstate wars, and a lack of political will
further hamper progress and development.

Indo-Pak Rivalry

o Since the end of the British administration in Asia in 1947, nuclear-armed states
have been engaged in a volatile and hostile environment, resulting in four major
conflicts in 1947, 1965, 1971, and 1999.
o Persistent cross-border terrorist strikes from Pakistani territory have disrupted
peace talks with India-Pakistan.

Kashmir Dispute

o The main disagreement between India and Pakistan is Kashmir, an unfinished


agenda for Pakistan since 1947.
o This issue has remained a major concern for countless border clashes and
instability.

Terrorism

o The conflicts between India-Pakistan have evolved into extremism and terrorism,
providing a platform for non-state actors to undermine the human fabric.
o There is a lack of a shared comprehensive approach and plan to combat
terrorism which has emerged owing to ideological differences.

Water Disputes

o In addition to the boundary and territory issue, water allocation among the
countries fuels interstate conflict and exacerbates tensions.
o There are water issues not just between India and Pakistan but also between
Bangladesh and India, India and Nepal, and even Afghanistan and Pakistan.

Lack of Economic Integration

o SAFTA has failed to attain success due to ongoing tensions and icy Indo-Pak ties.
o However, because of a lack of interdependence, SAARC nations have not satisfied
the world’s tremendous market demand across different sectors such as industry,
services such as hospitality and information technology, agriculture, and health,
resulting in market exploitation by China and other global market players.

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