SAARC

• During 19th and 20th century, international free trade termed as “Engine of growth.”

• Trade liberalization has increased with the rise of regionalism.• Trade liberalization and regional economic integration can help a region.

increase intra-regional trade by exploring the size of the market.• Driven towards integration by the pressure of economic interest of the region,

seven South Asian countries- Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka formed the South Asian Association for Regional Cooperation (SAARC) in 1985.

• Afghanistan joined in the year 2007 as the eighth country.

Trade Scenario - World

• SAARC is an organization of eight countries located in the South Asia and it stands for the South Asian Association for Regional Cooporation.

•  The Secretariat of this organization is located in the Kathmandu.

• 3% of the area of the world is represented by SAARC countries.

• It was founded as a movement toward collective progress for the involved nations of South Asia.

• It is around 1.7 billion of the people and it is 21% of the world population.

IMPORTANCE ASPECTS

Symbol: The SAARC symbol depicts alliance, which is specifically respect for the (a).Territorial integrity.

(b). Principles of sovereign equality(c). Calm settlement of all conflicts.

Observer: SAARC currently has nine observers at its summits: China, the US, Myanmar, Iran, Japan, South Korea, Australia, Mauritius and the European Union (EU).

Roles: 1. Representatives of the observer nations are allowed to sit and speak in the inaugural

and concluding sessions but not allowed to engage in negotiations, core discussion or vote on matters discussed at summits.

2. The other role of observer states is to monitor the situation as they might have some stake in the organisation ( USA, EU, Japan)

OBJECTIVES• To improve the quality of life and welfare of the people of the SAARC

member countries.• To develop the region economically, socially and culturally.• To provide opportunity to people to live in dignity and exploit

potentialities.• To enhance the self-reliance of the member countries jointly. • To enhance mutual trust, understanding and application of one other’s

issue.• To enhance mutual assistance in the area of social, economic, cultural,

scientific and technical fields.• To enhance cooperation with developing countries.• To have unity among issues regarding common interest.• To extend cooperation to other trade blocks.

Source: P.Subba Rao (2008). International Business. Mumbai: Himalaya Publishing House. 290-291.

The CouncilHighest Policy-Making Body

Council of Ministers

Standing Committee

Programming Committee

Technical Committees

Organisational Structure of SAARC

Source: P.Subba Rao (2008). International Business. Mumbai: Himalaya Publishing House. 290-291.

SAARC Recognized bodies• SAARC Chamber of Commerce & Industry (SCCI):- Its primary focus is on

the holistic growth of service sector and small & medium enterprises. • SAARC LAW (South Asian Association for Regional Cooperation in Law):

The desire to establish an association within the SAARC region “to disseminate information” and “promote an understanding of the concerns and developments” prompted the birth of SAARCLAW in 1991.

• South Asian Federation of Accountants (SAFA): In 1984, this organization came into existence with an objective of strengthening and serving the accountancy profession in the South Asian Region.

 

• South Asia Foundation (SAF): A non-profit and non-political organization founded by UNESCO Goodwill Ambassador Madanjeet Singh in 2000 .

• South Asia Initiative to End Violence Against Children (SAIEVAC): Found in 2005, this regional forum aims at “ending all forms of violence against children in South Asia.”

• Foundation of SAARC Writers and Literature (FOSWAL): It’s the first non-government organization working towards nurturing and strengthening cultural connectivity through interactions among SAARC nations.

SAARC Recognized bodies

LOCATION COUNTRYAgriculture centre SAC Dhaka BangladeshMeteorological Research Centre SMRC Dhaka BangladeshTuberculosis and HIV/AIDS Centre STAC Khatmandu NepalDocumentation Centre SDC New Delhi IndiaHuman Resource Development Centre SHRDC Islamabad pakistanCoastal Zone Management Centre SCZMC Male MaldivesInformation Centre SIC Khatmandu NepalEnergy Centre SEC Islamabad PakistanDisaster Management Centre SDMC New Delhi IndiaForestry Centre SFC Thimphu BhutanCultural Centre SCC Colombo SrilankaDevelopment Fund SDF Thimphu Bhutan

REGIONAL CENTRES of SAARC

SUMMITs of SAARC:FIRST SUMMIT: {7-8 Dec, 1985}; Dhaka, Bangladesh.

Their motive is to, Establish regional association, Forming study groups on the problems of terrorism and drug trafficking, and Conference on increasing woman participation.

SECOND SUMMIT: {16-17 Nov, 1986}; Bangalore, India.Their motive is to, Signing MOU in establishing SAARC secretariat by council of ministers, Decision to locate secretariat in Kathmandu, Appoint Abul Ahsan of Bangladesh as the first Secretary-General of SAARC.

THIRD SUMMIT: {2-4 Nov, 1987}; Kathmandu, Nepal.Their motive is to, Signed the SAARC Regional Convention on Suppression of Terrorism and an agreement to

establish a South Asian Food Reserve in SAARC.

FOURTH SUMMIT (1988)Venue: IslamabadTheir motive is to,• Expression of outrage over attempted coup in Maldives and declaration of support to her government.• 1989 declared as the “SAARC Year Against Drug Abuse.”• 1990 declared as the "SAARC Year of the Girl Child".• Launch of "SAARC-2000-A Basic Needs Perspective".

FIFTH SUMMIT(1990):Venue: MaleTheir motive is to,• Decision to build the SAARC Tuberculosis Centre and the SAARC Documentation Centre in Bangladesh and India respectively.• Declaration of the period 1991-2000 as the “Decade of the girl child”.

SIXTH SUMMIT(1991):Venue: Colombo.Their motive is to,• Decision to establish an independent South Asian Commission on Poverty Alleviation.• Approval for the Inter Governmental Group to be set up.

SEVENTH SUMMIT(1993):Venue: DhakaTheir motive is to,• Commitment to end poverty in South Asia by 2002 through a set of strategies known as the “Agenda of Actions.”• Appreciation for the first ever South Asian festival of SAARC Countries held in 1992. The festival promoted culture.

EIGHT SUMMIT (1995):Venue: DelhiTheir motive is to,• 1994 marked as the SAARC Year of Youth.• 1996 marked as the SAARC Year of Literacy.

NINTH SUMMIT(1997):Venue: MaleTheir motive is to,• 1997 designated the "SAARC Year of Participatory Governance" .• Agreement to study the social compulsions that lead to child labor.

TENTH SUMMIT (1998):Venue: ColomboTheir motive is to,• Decision to setup a committee of experts to aide in the formulation of SAFTA.• Directive for the formulation of SAARC’s social charter issued.

ELEVENTH SUMMIT {5-6 Jan, 2002} Kathmandu, Nepal.

Their motive is to, Emphasis is that the members should solve the differences among themselves through mutual

understanding.

 13th Summit (2005):Venue: Dhaka• 2006-2015 declared as the “Decade of Poverty Alleviation”.•Agreements signed related to customs assistance, arbitration and tax assistance.

14th Summit (2007):Venue: Delhi• SAARC Agenda for Culture launched.•South Asian university to be established in India.

TWELFTH SUMMIT: {4-6 Jan, 2004} Islamabad, Pakistan.Their motive is to, Agreements were signed to make Asia as a free trade zone.

FIFTEENTH SUMMIT: {1-3 Aug, 2008} Colombo, Sri Lanka.

Their motive is to, Partnership for growth of South Asia, Energy, Environment & Water resources, Transport, Science and technology, Tourism, South Asian Free Trade Area, Education, Admission of Australia and Myanmar as observers.

• EIGHTEENTH SUMMIT: {26–27 NOVEMBER 2014} KATHMANDU, NEPAL.

THEIR MOTIVE IS TO,

• POVERTY ALLEVIATION

• AGRICULTURE AND FOOD SECURITY

• BLUE ECONOMY

FUTURE PLAN:FIRST SAARC SATELLITE TO BE LAUNCHED BY 2016 

Source:http://economictimes.indiatimes.com/articleshow/48059943

GDPGDP Growth

RateExports

Foreign Direct Investment

(PPP) -2014 -2014 -2013Afghanistan 32.007 $63.5 bn 3.20% $0.3 bn N/A 28.1%(Age 15) 15.80%Bangladesh 159.857 $572.6 bn 6.20% $31.2 bn $0.66 bn 57.7%(Age 15) 31.50%Bhutan 0.779 $6.3 bn 6.40% $0.7 bn $63 mln 52.8%(age 15) 23.70%India 1,276.20 ' $7996.6 bn 7.30% $464.0 bn $31.0 bn 74.4%(age 7) 21.90%Maldives 0.38 $5.2 bn 4.50% $0.28 bn N/A 99%(age 15) 16%Nepal 28.4 $70.7 bn 5.50% $1.0 bn $10 mln 66%(age 15) 25.20%Pakistan 190.4 $928.0bn 4.20% $25.1 bn $0.709 bn 55%(age 15) 22.60%Srilanka 21.7 $233.7 bn 7% $11.8 bn $0.9 bn 98.1%(age 15) 8.90%

COUNTRY Population (Million)

Literacy Rate (Given Age &

above)

Population below Poverty

Line

This Economic data is sourced from the International Monetary Fund current as of April 2015, and is given in US dollars.

SAARC IN FIGURES 2015

Trade Practices – Top 3 Commodities (World vs India)

2013 2014 % Growth 2013 2014 % Growth % ShareMineral fuels, oils, distillatio products etc 4.2 4.4 4.71 0.45 0.67 50.32 15.22

Vehicles other than railway, tramway 1.11 1.5 35 0.41 0.57 -2.86 8.63Machinery, nuclear reactors, boilers etc 1.45 1.39 -4.27 0.12 0.12 -6.89 13.34

India's Exports to Sri LankaSri Lanka's Imports from WorldCommodity

2012 2013 % Growth 2012 2013 % Growth % ShareMineral Fule, oil etc 0.49 0.5 3.45 0 0 142.16 0.31

Machinery, nuclear reactor, boiler etc 0.12 0.14 13.83 0 0 6.43 3.32Electrical, electronic equipment etc 0.09 0.12 30.75 0 0 7.27 1.85

Commodity Maldives Import from world India's Export to Maldives

(Values in US$ Billions)

Trade Practices – Top 3 Commodities (World vs India)

2012 2013 % Growth 2012 2013 % Growth % ShareMineral fuels, oils, distillatio products etc 1.35 1.21 -10.42 1.31 1.14 -13.03 94.13

Iron & Steel 0.5 0.68 35.6 0.45 0.63 40.91 92.62Animal, vegetable fats & oils, deavage products etc 0.26 0.42 62.03 0 0 3.09 0.46

Commodity Nepal's Imports from World India's Exports to Nepal

2012 2013 %Growth 2012 2013 %Growth %ShareCommodities not elsewhere specified 2.41 4.83 101.01 0.08 0.00 -100.00 0.00

Mineral fuels,oils,distillation products etc. 1.52 1.45 -4.28 0.00 0.00 -29.17 0.00Iron and steel 0.35 0.52 51.32 0.00 0.00 -79.42 0.05

CommodityAfghanistan's Imports from World India's exports to Aghanistan

(Values in US$ Billions)

CommodityBangladesh's Imports from

World

India's Export to

Bangladesh% Share

2013 2013Cotton 4.97 1.66 33.41

Machinery,nuclear reactors, boilers, etc. 3.36 0.28 8.41Machinery fuels,oils,distillation products etc. 2.27 0.16 7.13

Trade Practices – Top 3 Commodities (World vs India)

CommodityBhutan's

Imports from World

India's Exports to

Bhutan% Share

2013 2013 %GrowthMineral fuels, oils, distillation products, etc 0.06 0.06 99.96

Machinery, nuclear reactors, boilers, etc 0.03 0.01 34.38Electrical, electronic equipment 0.03 0 15.45

(Values in US$ Billions)

2013 2014 % Growth 2013 2014 % Growth % ShareMineral fuels, oils, distillation products, etc 15.25 14.82 -2.79 0.02 0.04 63.69 0.25

Machinery, nuclear reactors, boilers, etc 3.06 3.93 28.41 0.03 0.06 94.86 1.50Electrical, electronic development 2.68 3.35 24.75 0.00 0.02 595.70 0.58

Commodity PAKISTAN's IMPORTS FROM WORLD INDIA's EXPORTS TO PAKISTAN

Trade Practices – Top 3 Commodities (World vs India)

PAKISTAN

Source: http://indiantradeportal.in/vs.jsp?lang=0&id=0,25,45,916

(Values in US$ Billions)

CRITICAL ANALYSIS

SAARC SUCCESSES: Creating Amiable Environment.

CREATION OF “SAPTA” : Trading Agreement for promoting trade amongst the member countries.

CREATION OF “SAFTA” : A free trade agreement confined to goods to reduce customs duty of all traded goods to zero by the year 2016.

ADVANTAGES TO THE DEVELOPING AND UNDERDEVELOPED COUNTRIES : Provided a forum for bilateral and regional agreements to the nations for collaboration among themselves for development.

SAARC FAILURES UNRESOLVED BORDER AND MARITIME ISSUES : This has led to

the problems of Terrorism, Refugee Crisis and Smuggling. These unresolved issues continue to mar cooperative relations.

ROLE OF EXTERNAL POWERS : India’s ambitions crisscross with China. China has strengthened its relationship with Sri Lanka and Bangladesh. Thus, this has led to the trust deficit in the grouping.

The intra-regional trade of SAARC amounted to $40.5 billion in 2011, which constitutes just 5% of member countries’ trade.

In its 30 years of existence, SAARC failed to hold 11 annual summits for political reasons, both at the bilateral and internal levels.

THANK YOUPresented by:Atul GuravAswin NamburiShubham ParsekarNeha KumariShrey SoodSourabh MayabhateTeja MulagalaNitish MoningiVivek Kumar