South Asian Association For Regional Cooperation

INTRODUCTION
The South Asian Association for Regional Cooperation (SAARC) is
organization of South Asian nations, founded in 1985 and dedicated to
economic, technological, social, and cultural development emphasizing
collective self-reliance. Its seven founding members are Bangladesh, Bhutan,
India, the Maldives, Nepal, Pakistan, and Sri Lanka. Afghanistan joined the
organization in 2007. Meetings of heads of state are usually scheduled annually;
meetings of foreign secretaries, twice annually. Headquarters are in Kathmandu,
Nepal.

HISTORY OF SAARC
The South Asian Association for Regional Cooperation (SAARC) is an
economic and political organization of eight countries in Southern Asia. In
terms of population, its sphere of influence is the largest of any regional
organization almost 1.5 billion people, the combined population of its member
states.
In the late 1970s, Bangladesh President Ziaur Rahman proposed the creation of
a trade bloc consisting of South Asian countries. The Bangladeshi proposal was
accepted by India, Pakistan and Sri Lanka during a meeting held in Colombo in
1981. In August 1983, the leaders adopted the Declaration on South Asian
Regional Cooperation during a summit which was held in New Delhi. The
seven South Asian countries, which also included Nepal, Maldives and Bhutan,
agreed on five areas of cooperation.
Afghanistan was added to the regional grouping at the behest of India on
November 13, 2005,With the addition of Afghanistan, the total number of
member states were raised to eight

South Asian Association For Regional Cooperation

OBJECTIVES OF SAARC
To improve the quality of life and welfare of people of the SAARC
member countries.
To develop the region economically, socially and culturally.
To provide the opportunity to the people of the region to live in dignity
and to exploit their potentialities.
To enhance the self-reliance of the member countries jointly.
To provide conductive climate for creating and enhancing mutual trust,
understanding and application of one anothers issues.
To enhance the cooperation with other developing economies.
To enhance the mutual assistance among the member countries in the
areas of economic, social, cultural, scientific and technical fields.
To have unity among the member countries regarding the issues of
common interest in the international forums.
To extend cooperation to other trade blocks.
To have unity among member countries.
Acceleration of economic growth, Social progress and cultural
development in the region, promotion of active collaboration and mutual
assistance in the economic, social, cultural, technical and scientific fields
and strengthening of cooperation among the Member States in
international forum on matters of common interest to promote the welfare
of the peoples of SOUTH ASIA and to improve their quality of life to
accelerate economic growth, social progress and cultural development in
the region and to provide all individuals the opportunity to live in dignity
and to realize their full potentials.
To promote and strengthen collective self-reliance among the countries of
SOUTH ASIA to contribute to mutual trust, understanding and
appreciation of one another's problems to promote active collaboration
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and mutual assistance in the economic, social, cultural, technical and

scientific fields to strengthen cooperation with other developing countries
to strengthen cooperation among themselves in international forums
matters of common interests; and to cooperate with international and
regional organizations with similar aims and purposes.
PRINCIPLES
Cooperation within the framework of the ASSOCIATION shall be
based on respect for the principles of sovereign equality, territorial
integrity, political independence, non interference in the internal
affairs of other States and mutual benefit.
Such cooperation shall not be a substitute for bilateral and multilateral
cooperation but shall complement them.
Such cooperation shall not be inconsistent with bilateral and
multilateral obligation

SAARC SECRETARIAT

South Asian Association For Regional Cooperation

The SAARC Secretariat was established in Kathmandu on 16 January 1987 and

was inaugurated by Late King Birendra Bir Bikram Shah of Nepal.
It is headed by a Secretary General appointed by the Council of Ministers from
Member Countries in alphabetical order for a three-year term. He is assisted by
the Professional and the General Services Staff, and also an appropriate number
of functional units called Divisions assigned to Directors on deputation from
Member States. The Secretariat coordinates and monitors implementation of
activities, prepares for and services meetings, and serves as a channel of
communication between the Association and its Member States as well as other
regional organizations.
The Memorandum of Understanding on the establishment of the Secretariat
which was signed by Foreign Ministers of member countries on 17 November
1986 at Bangalore, India contains various clauses concerning the role, structure
and administration of the SAARC Secretariat as well as the powers of the
Secretary-General. In several recent meetings the heads of state or government
of member states of SAARC have taken some important decisions and bold
initiatives to strengthen the organisation and to widen and deepen regional cooperation.

THE SAARC SECRETARIAT AND MEMBER STATES OBSERVE 8

DECEMBER AS THE SAARC CHARTER
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Day1.

Secretary General, Directors and Staff of the SAARC Secretariat at the function
to celebrated the 25th SAARC Charter Day, 2009 in Kathmandu

ACTIVITIES OF SECRETARIAT

South Asian Association For Regional Cooperation

REGIONAL CENTERS
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The SAARC Secretariat is supported by following Regional Centres established

in Member States to promote regional cooperation. These Centres are managed
by Governing Boards comprising representatives from all the Member States,
SAARC Secretary-General and the Ministry of Foreign/External Affairs of the
Host Government. The Director of the Centre acts as Member Secretary to the
Governing Board which reports to the Programming Committee.
SAARC Agricultural Centre (SAC), Dhaka
SAARC Meteorological Research Centre (SMRC), Dhaka
SAARC Tuberculosis Centre (STC), Kathmandu
SAARC Documentation Centre (SDC), New Delhi
SAARC Human Resources Development Centre (SHRDC), Islamabad
SAARC Coastal Zone Management Centre (SCZMC), Maldives
SAARC Information Centre (SIC), Nepal
SAARC Energy Centre (SEC), Pakistan
SAARC Disaster Management Centre (SDMC), India
SAARC Forestry Centre (SFC), Bhutan
SAARC Cultural Centre (SCC), Sri Lanka

AREA OF CORPORATION
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Agriculture and Rural Development

Health and Population Activities
Women, Youth and Children
Environment and Forestry
Science and Technology and Meteorology
Human Resources Development and
Transport.

ESTABLISHMENT OF HIGH LEVEL WORKING GROUP IN AREAS:

Information and Communications Technology

Biotechnology
Intellectual Property Rights
Tourism
Energy

ORGANIZATION STRUCTURE OF SAARC

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THE COUNCIL

COUNCIL OF MINISTERS

STANDING COMMITTEE

PROGRAMMING COMMITTEE

TECHNICAL COMMITTEE

SECRETARIAT

COUNCIL REPRESENTATIVES
Represented by the heads of foreign Minister of the member of Government
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FUNCTIONS:
The Highest Policy making body
MEETING:
The Council meets once in two years.
COUNCIL OF MINISTERS
REPRESENTATIVES:
Represented by the foreign ministers of member Governments
MEETINGS:
The Council meets twice a year or more times if necessary. Extraordinary
session of the Council may be held by agreement among the Member States.

FUNCTION OF COUNCIL OF MINISTER

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IT REVIEWS THE FUNCTIONING

OF WHOLE BODY SYSTEM
IT FORMULATES POLICIES
DECIDES THE NEW AREAS OF
COORDINATION AMONG THE
NATIONS
ESTABLISHMENT OF ANY
ADDITIONAL MECHANISM IF ANY
DECIDES THE ISSUES OF GENERAL
INTERESTS TO THE SAARC MEMBER
COUNTRIES

STANDING COMMITTEE
REPRESENTATIVES:
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It consists of Foreign secretaries of members governments

MEETINGS :
It is uncertain Meeting will be held whenever there is a necessary. The Standing
Committee shall submit periodic reports to the Council of Ministers make
reference to it as and when necessary for decisions on policy matters.
FUNCTIONS OF STANDING COMMITTEE

MOBILIZING
CO-OPERATION
WITHIN & OUTSIDE
REGION

DETERMINING
INTERSECTIORAL
PRIORITIES

FUNCTIONS OF
STANDING
COMMITTEE

MONITORING &
CO-ORDINATING
PROGRAMMES

FORMULATING
THE MODALITIES
FINANCING

PROGRAM COMMITTEE
Representative: It includes the senior officials of the member Governments.
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FUNCTION OF
PROGAMMING
COMMITTEE

ANALYZING THE
REPORTS AND
SUBMITTING
THEM TO THE
STANDING
COMMITTEE
ALONG WITH
ITS
COMPONENETS

FINALIZING
THE ANNUAL
SCHEDULE OF
THE
SECRETARIAT

SCRUTINISING
THE BUDGET OF
THE
SECRETARIAT

CARRING OUT
THE ACTIVITIES
ASSIGNED BY
THE STANDING
COMMITTEE

TECHNICAL COMMITTEE
Representative: It comprises the representatives of all countries.
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Technical Committees comprising representatives of Member States shall be

responsible for the implementation, coordination and monitoring of the
programmes in their respective areas of cooperation.
The Technical Committees shall submit periodic reports to the Standing
Committee.
The Chairmanship of the Technical Committees shall normally rotate among
Member States in alphabetical order every two years.
The Technical Committees may, inter-alia, use the following mechanisms and
modalities, if and when considered necessary:
a) meetings of heads of national technical agencies;
b) meetings of experts in specific fields;
c) contact amongst recognised centres of excellence in the region.

FUNCTIONS OF TECHNICAL COMMITTEE

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FUNCTIONS OF
TECHNICAL
COMMITTEE

Formulating
Projects &
programmes in
their
respective areas

Monitoring &
Implementing
Projects

Submitting reports to
the Standing
Committee via
the Programme
Committee

TECHNICAL COMMITTEES OF SAARC

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AGRICULTURE
2000

RURAL
DEVELOP
MENT 2000

COMMUNICATI
ON 2004

TECNICA
L
COMMIT
EES OF
SAARC

SCIENCE
&
TECNOLOGY
1983

TOURISM
&

ENVIRONMEN
T 2005

HEALTH
&
POPLATION
ACTIVITIES 1984

TRANSPORT
2005

ACTION COMMITTEES
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The Standing Committee may set up Action Committees comprising Member

States concerned with implementation of projects involving more than two but
not all Member States.
FINANCIAL ARRANGEMENTS
The contribution of each Member State towards financing of the activities of the
ASSOCIATION shall be voluntary.
Each Technical Committee shall make recommendations for the apportionment
of costs of implementing the programmers proposed by it.
In case sufficient financial resources cannot be mobilized within the region for
funding activities of the ASSOCIATION, external financing from appropriate
sources may be mobilized with the approval of or by the Standing Committee.
GENERAL PROVISIONS
Decisions at all levels shall be taken on the basis of unanimity.
Bilateral and contentious issues shall be excluded from the deliberations.

IMPLEMENTATION OF THE SAARC INTEGRATED PROGRAMME

OF ACTION (SIPA)
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Agriculture and Rural Development.

Communications and Transport.
Social Development.
Environment, Meteorology and Forestry.
Science and Technology.
Human Resources Development.
Energy.

Genesis
The genesis of the Integrated Programme of Action (IPA) could be traced back
to the First Meeting of the Foreign Secretaries of South Asian countries
(Colombo, April 21-23. 1981). They agreed that there were several areas in
which mutually beneficial regional cooperation could take place.
As an initial step they agreed to establish five study Groups in the fields of
Agriculture, Rural Development, Telecommunications, Meteorology and Health
and Population Activities.
At their Second Meeting (Kathmandu, Nov.2-4, 1981), the Foreign Secretaries
decided to convert the Study Groups into Working Groups with the task of
drawing up a comprehensive programmE which would include: exchange of
data and information, exchange of experts, training facilities, scholarships etc.,
organisation of seminars, workshops etc.
The long term programme of action would, inter-alia, include: assessment of
needs and resources, preparation of specific projects of a regional nature, and
modalities for financing the projects. The Foreign Secretaries also decided to
institute studies in further four areas of cooperation: Transport, Postal Services,
Scientific and Technological cooperation.
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Subsequently, at the Third Meeting of the Foreign Secretaries (Islamabad, Aug.

7-9, 1982) decided to set up a Committee of the Whole to prepare an Integrated
Programme of

Action in the agreed areas of cooperation and to recommend modalities and

mechanisms for implementation, coordination, and monitoring of the agreed
programme of action, and, to the extent possible, provide indications of the
short term component of theIPA
The Meeting of the Committee of the Whole (Colombo, Jan. 10-13, 1983) made
a host of useful recommendations regarding activities for short as well as the
long term. While noting that National Focal Points (NFPs) had already been
established in the respective Ministry of Foreign Affairs, it recommended the
establishment of sectoral points.
It recommended the redesignation of the Working Groups as Technical
Committees (TCs). As for mechanisms and modalities to be used it pointed to
meetings of National Technical Agencies, meetings of experts in specific fields
and contacts amongst recognised centres of excellence in the region.

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AIMS AND TERMS OF REFERENCE

The First Meeting of the Foreign Ministers of the seven Member States (New
Delhi, August 1-2, 1983) adopted the Declaration on South Asian Regional
Cooperation (SARC) and launched the Integrated Programme of Action (IPA) in
nine areas of cooperation. On institutional arrangements in respect to Technical
Committees, the recommendations of the Committee of the Whole were fully
adopted.
The primary aim of the Technical Committee is to help member states to build
up or reinforce their national capabilities and undertake coordinated
programmes and activities at national and regional levels. The Committee could
also examine broad relationships at the policy level between IPA activities and
economic and social development in a catalytic, promotional and advisory
capacity with a view to incorporate various recommended programmes into the
mainstream of development.
According to Article VI of the SAARC Charter, the terms of reference of the
Technical Committees are spelt out as viz.
(a) determination of the potential and the scope of regional cooperation in
agreed areas.
(b) formulation of programmes of action and preparation of projects.
(c) determination of financial implications of the sectoral programme of action.
(d) formulation of recommendation regarding apportionment of costs.
(e) monitoring of progress in implementation.
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This Article also clearly mentions that the Technical Committees shall submit
periodic reports to the Standing Committee.7 The Chairmanship of the
Technical Committees shall normally rotate among Member States in
alphabetical order every two years. The Technical Committees may, inter alia,
use the following mechanism and modalities, if and when considered necessary.
a. meetings of heads of national technical agencies
b. meetings of experts in specific fields
c. contact among recognised centres of excellence.

Over the years, SIPA has undergone several changes. At the time of its
establishment in 1983, there were 9 Technical Committees. Subsequently their
number increased to 12. Following a review this number was reduced to 11 in
1991. Till the year 1999 the Integrated Programme of Action (IPA) consisted of
the following 11 Technical Committees.
- Agriculture (TC1)
- Communication (TC2)
- Education, Culture and Sports (TC3)
- Environment and Meteorology (TC4)
- Health, Population Activities and Child Welfare (TC5)
- Prevention of Drug Trafficking and Drug Abuse (TC6) - Rural Development
(TC7)
- Science and Technology (TC8)
- Tourism (TC9)
- Transport (TC10)
- Women in Development (TC11)

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THE NEW SIPA SINCE 2000

The Standing Committee in 1996 reviewed the institutional mechanisms and
activities of the Association. This included an evaluation of the mandate and
functions of the Technical Committees. An Independent Expert Group (IEG)
was also set up in 1997 by the Secretary-General which undertook an extensive
review of the functioning of the IPA and made wide-ranging recommendations.
These were considered by the Standing Committee at its 26th Session [Nuwara
Eliya, Sri Lanka, March 1999] which proposed a restructured IPA.8 It was
approved by the Council of Ministers at its 21st Session. Under the
reconstituted SIPA, the number of Technical Committees has been reduced from
11 to 7 mainly through the amalgamation of different areas covered by the
erstwhile Technical Committees thereby eliminating overlapping and
duplication. The prime objective of the reorganization has been to enhance
clarity in terms of goals and targets of the activities as well as to improve their
quality and efficacy. The seven Technical Committees under SIPA now cover:
1 Agriculture and Rural Development;
2 Communications and Transport;
3 Social Development;
4 Environment, Meteorology and Forestry;
5 Science and Technology;
6 Human Resources Development;
7 Energy
The restructured SIPA became operational from January 2000.
REVIEW OF ACTIVITIES UNDER SAARC
INTEGRATED PROGRAMME OF ACTION (SIPA)
The IPA is the core of the SAARC process. It provided the firm foundation from
which regional cooperation could take off. It has been the harbinger of the
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continuing expansion of SAARC and its future prospect. This review is based
on the inputs provided by the Sectoral Focal Points (SFPs), reports of the
Chairpersons of the Technical Committees and the views\comments of the
National Focal Points (NFPs).
Besides a thorough review of all the technical Committee meetings have been
made mainly on the basis of various reports of these Committees.9
Actually only Tourism (TC9) has been dropped and discontinued from the old
IPA activities. The rest were amalgamated and combined under different heads.
Energy is the only new SIPA activity initiated in 2000. Tourism has been put
under the purview of the SAARC Chamber of Commerce and Industry (SCCI)
Tourism Council which is an exclusively private sector outfit. However there
have been suggestions for the restoration of the TC on Tourism.10
Therefore, before discussing the new SIPA, the progress made by Tourism
(TC9) at least till 1999 are mentioned below. This activity does not figure in the
SIPA list any more.

TOURISM (TC9)
TC9 was established in 1991. The SAARC Scheme for Promotion of Organised
Tourism (SPOT) initiated in the Second SAARC Summit also came under its
purview.11 The activities also included training facilities in the field of Tourism
and Hotel Management. An Action Plan was also adopted to promote
cooperation through training programmes, exchange of information, joint
promotion, joint investment, intra-regional Tourism etc.
A SAARC Food Festival in Dhaka, Familiarisation Tour in Sri Lanka, and
Educational Tour in Pakistan and meetings of Expert Groups to discuss the
participation in international tourism fairs with common tourism packages were
held. The First Ministerial Meeting of Tourism in Colombo in 1997 agreed to
promote direct air links between the SAARC capitals. TC8 played significant
role in the formation of a Tourism Council by the SAARC Chamber of

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Commerce and Industry (SCCI). Tourism is vital to all South Asian Economies
and requires sustained intensification of action oriented programmes.
The 13th Summit (Dhaka, 2005) decided to launch 2006 as South Asia
Tourism Year." The Second Meeting of the SAARC Tourism Ministers (Coxs
bazaar, 21 May 2006) decided activities on the observance of the Tourism Year
in a befitting manner that should also include SAARC Tourism Fair, SAARC
Food Festival and Cultural Fair/Exhibitions. This also seems to have taken place
in a shallow manner. The year could have been observed in a much more
effective manner by the member states.

TECHNICAL COMMITTEE ON AGRICULTURE AND RURAL

DEVELOPMENT
As per the reconstituted SIPA, the two Technical Committees on Agriculture
and Rural Development were merged into one as the Technical Committee on
Agriculture and Rural Development.
TC on Agriculture has played an important role in the setting up of the first
regional institute viz., SAARC Agricultural Information Centre (SAIC) which
has been entrusted with the compilation of and preparation of inventories of
institutes in each Member State.
The exchange of germplasm, breeding materials and prototype of farm tools and
equipment has also been undertaken.
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Training courses have been conducted in various fields and of late it has also
started focusing on genetic engineering and food availability, database on
training and facilities.
Regular meetings of the counterpart scientists in the 12 agreed areas of
crop/discipline have taken place. Multi-location trials (MLT) of certain crops
have enabled the selection of varieties most suitable for breeding programmes.
Two important projects viz. "Promotion of Bio-villages" and "Reaching the
Million: Training of Farmers and Farm Women by 2000" have been completed.

TECHNICAL COMMITTEE ON COMMUNICATIONS AND

TRANSPORT
The two erstwhile Technical Committees on Telecommunications and on
Transport have been merged as the Technical Committee on Communications
and Transport. Broader issues relating to telecommunications and postal
services are also being addressed by the Committee.
Most of the activities in the Postal Sector are in the form of Seminars,
Workshops, Study Tours and training courses which facilitated the exchange of
information, professional knowledge and expertise. It approved two long-term
activities
(i)

"Introduction of a Higher Professional Degree Course on Management

at University Level"
(ii) ii) "Establishment of the SAARC Postal Research and Development
Centre" which were subsequently dropped due to financial
constraints.
The work programme for the Telecommunications sector was drawn up with a
view to bring telecommunications within easy reach of the common man of the
region.

TECHNICAL COMMITTEE ON SOCIAL DEVELOPMENT

Under the reconstituted SIPA, the Technical Committee on Social Development
subsumes two erstwhile Technical Committees on Health, Population Activities
and Child Welfare, and Women in Development. Broader issues relating to drug
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de-addiction, rehabilitation of drug addicts and demand reduction are also

addressed by this Committee.
Over three dozens of status papers have been circulated among the Member
States along with a Directory of training programmes in the primary areas of
children, population welfare and policy, maternal and child health, primary
health care, disabled and handicapped persons, and control and eradication of
major diseases in the region.
It played an important role in the establishment of the SAARC Tuberculosis
Centre in Kathmandu in 1992. Annual reviews of the situation of children in
SAARC countries have been held from 1993 onwards. The pulse polio
immunisation programme has been a great success. In view of the widespread
nature of the Severe Acute Respiratory Syndrome (SARS) epidemic, Male
Declaration was adopted on a Collective SAARC Response to SARS. The
Regional Strategy of HIV/AIDS is also available.
Technical Committee on Environment, Meteorology and Forestry
Under the reconstituted SIPA, the Technical Committee on Environment
initiated in 1987 and that on Meteorology were merged into a single Technical
Committee on Environment and Meteorology. Forestry is also a part of this
Committee.
Two major studies carried out so far are "Greenhouse Effect and its
Impact on the Region." and "Study on the Causes and Consequences of Natural
Disasters and the Preservation and Protection of Environment".The
recommendations included
i)

Strengthening the environment management infrastructure.

ii)

Programme on environmentally sound land and water use planning.

iii)

Research and action programme on mountain development in the

Himalayan region.

iv)

Coastal zone management programme.

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v)

SAARC forestry and watershed programme.

vi)

Pollution control and hazardous wastes management programme.

vii)

SAARC cooperative programme on biodiversity management.

viii) People's participation in resource management.

ix)

Information exchange on low cost and environmentally sound habitat

related technologies.

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The Technical Committee on Science and Technology came into being in 1983.
Since then, the Committee has formulated and implemented a variety of
regional programmes including organization of expert group meetings,
seminars, workshops and training programmes, and preparation of state-of-theart reports and directories on various subjects with a view to developing the
scientific and technological skills in Member States through increased
cooperation. Ever since its establishment, the Committee has held sixteen
meetings under the erstwhile IPA on Science and Technology (TC8) has
exchanged information, experiences and data on Science and Technology. A
number of Studies/Directories/Guide Books, State-of-the Art Reports, Joint
Research Projects have been prepared. Training programmes have also been
held for Scientists and Technologists on Tannery Waste Management, Low Cost
Housing, Development of Prawn Hatcheries, Electronics and Molecular
Biology; and Appropriate Post Harvest Food Technology for Perishable Items.
Networking arrangements have been initiated in the fields of Bio-technology
and Genetic Engineering; Energy Modelling Techniques; Technologies and
National Nodal Points have been identified by Member States.
Many State-of-the-Art Reports and Directories have been completed. It made
many proposals for regional projects including Utilization of Wind Energy,
Connectivity of the Member States through Internet for establishing the
Information Processing System and Databases on Technologies.
Technical Committee on Human Resources Development
The restructured Technical Committee on Human Resources Development
includes (a) education; (b) culture; (c) sports; and (d) youth development. The
erstwhile TC on Education had identified 7 priority areas viz. Universalisation
of Primary Education; Vocational and Technical Education, Higher Education,
Research and Training. Nodal agencies and points have been identified for
sharing of information of mass literacy programmes among the member states.
The erstwhile TC on Sports, Arts and Culture included several coaching camps
on various disciplines of sports, exhibitions of handi-crafts, photographic
exhibitions, archaeological Congresses etc. This includes the South Asian
Festival. It has identified many long term measures to strengthen the level of
activities including establishment of networking arrangements in the field of
archaeology, museology and historical studies and creation of consortium of
open university in the region. Some action has been taken towards its
implementation.

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The activities undertaken have helped to foster a SAARC spirit through larger
public appeal and involvement. However the SAARC Chairs, Fellowships and
Scholarships Scheme initiated at the Bangalore Summit in 1987 have very
partially taken off.
TECHNICAL COMMITTEE ON ENERGY
Cooperation in the energy sector was brought under a new Technical Committee
on Energy.
The basic objectives are to:
develop a common understanding on energy cooperation in South Asia.
provide a forum for discussion on ways and means of developing.
harness the existing energy resources within the region.
facilitate exchange of information between Governments, the private sector.
experts and appropriate community-based organizations active in the field.
consider modalities/technical details regarding establishment of an
appropriate South Asian Energy Grid.
consider the desirability and feasibility of obtaining supplementary technical
and other resources from regional and international partners.
However after the First Meeting [Dhaka, November 2002] the TC related to
Energy has now been converted into a Working Group on Energy. This Groups
first meeting [15-16 June 2004, Islamabad] recommended the following Plan of
Action:
1. A South Asia Energy Forum at Ministerial Level may be formed under
the SAARC umbrella for exchange of views on policy issues and
cooperation.
2. The possibility of setting up a SAARC Energy Centre may be explored.
3. A Study may be carried out on options, benefits and constraints of energy
trade in the region.
4. Exchange of information and technical discussions are prerequisites for
cooperation and may be encouraged by the respective Governments.
5. Joint strategies may be evolved for global energy from each others
experiences in institutional and pricing reforms in the energy sector.
6. Countries of the region may benefit from each others experiences in
institutional and pricing reforms in the energy sector.
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7. In the long term transnational energy lines (electricity, gas and oil) could
provide basis for an integrated and prosperous economic future of South Asia.
8. Special focus is required on energy availability in rural areas, including
conventional and non-conventional forms of energy for economic development
and poverty reduction.
9. Non-conventional and renewable sources of energy may be promoted
through sharing of manpower, expertise, know-how and training programmes.
10. Feasibility of establishing a Regional Fund for promoting nonconventional energy may be explored.
SAARC DEVELOPMENT FUND (SDF)
In 1996, a first funding mechanism was created in SAARC, South
Asian Development Fund (SADF), merging the SAARC Fund for Regional
Projects (SFRP) and the SAARC Regional Fund. SADF objectives were to
support industrial development, poverty alleviation, protection of environment,
institutional/human resource development and promotion of social and
infrastructure development projects in the SAARC region. SADF started with a
resource base of US$5 million (contributed on pro-rata basis by SAARC
Member States), and till its closure in June 2008, had funds amounting to
approx. US$ 7.0 million. Till its closure, SADF completed techno-economic
feasibility studies for sixteen project studies.
During 2002-2005, SAARC Member States considered instituting
various sectoral funding mechanisms e.g. Poverty Alleviation Fund,
Infrastructure Fund, South Asian Development Bank, Media Development
Fund, Voluntary Fund for the Differently Able Persons. A primary reason was
that the existing South Asian Development Fund (SADF) was found to be
inadequate i.e. in terms of required quantum of funds and its limited scope of
work. In order to avoid proliferation of funds, the SAARC Financial Experts
(September 2005) looked at the entire gamut of issues relating to funding of
SAARC projects and programmes; and, amongst others, agreed that in lieu of
proliferating sectoral financing mechanisms, the SADF be reconstituted into the
SAARC Development Fund (SDF). And, SDF would have a permanent
Secretariat, with three Windows (Social, Economic, Infrastructure). The
Thirteenth SAARC Summit (Dhaka, 12-13 November 2005) finally decided to
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reconstitute the SADF into SDF to serve as the umbrella financial mechanism
for all SAARC projects and programmes
The Social Window would primarily focus poverty alleviation and
social development projects. The Infrastructure Window would cover projects in
the areas namely energy, power, transportation, telecommunications,
environment, tourism and other infrastructure areas. The Economic Window
would primarily be devoted to non-infrastructural funding.
Following that, by March 2008, an Inter-Governmental process on
SDF, concluded the work on the SDF legal architecture i.e. Charter, Bye laws.
As it finalized the legal architecture, among others, it mandated the SAARC
Secretariat to function as the interim Secretariat for the SDF to operationalise
the Fund from available resources and to implement identified projects, till such
time a Permanent Secretariat is established.
The SDF Charter was signed at the Fifteenth SAARC Summit
(Colombo, 23 August 2008). The Summit also agreed that SDF Permanent
Secretariat would be established in Thimphu. The Fifteenth Summit further
decided that Member States would early ratify the SDF Charter.
Once the SDF inter-governmental process completed its work, SDF
Board became functional and has been meeting periodically: Second Meeting
(SAARC Secretariat, May 2008), Third Meeting (SAARC Secretariat, 21 July
2008), Fourth Meeting (Thinphu, 29-30 April 2009), Fifth Meeting (Kabul, 1-2
September 2009), Sixth Meeting (Thimphu, 25-26 November 2009), Seventh
Meeting (SAARC Secretariat, 3-5 February 2009).
Two regional Projects have so far been underway: The first Project i.e.
on Women Empowerment (since August 2008); and, the second Project on
Maternal & Child Health (MCH) (since September 2009). Efforts are underway
to initiate steps related to the Project on Teachers Training, as approved by the
SAARC Finance Ministers (2007). At the last i.e. Seventh Meeting of the SDF
Board, three more regional/sub-regional Projects were also taken up: on Zero
Energy Cold Storage; on Post-harvest Management and Value addition of Fruits
in Production Catchments in SAARC Countries; and, on Facilitating Access to
Energy Efficient and Renewable Energy Technologies, with special focus on
Women in selected SAARC Countries.
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South Asian Association For Regional Cooperation

A growing interest is evident among the SAARC inter-governmental

bodies/mechanisms to draw up focused Projects regional or sub-regional
and to seek funding from SDF.

Over the past two years (2008-09), the SDF Operational Modalities,
initial personnel structure of the Fund has been finalized to facilitate
operationalisaiton of the SDF Permanent Secretariat in Thimphu. The Seventh
Meeting of the Board recommended to the SDF Governing Council on
appointment of the first CEO of the Fund. By early April 2010, the Members of
the SDF Governing Council i.e. the SAARC Finance Ministers approved the
CEO. Once approved by the Sixteenth SAARC Summit, the CEO would
formally initiate the work of the SDF Secretariat. During the Summit, in
presence of the heads of State/Government, the SDF Secretariat would be
formally inaugurated.
By April 2010, all Member States have ratified the SDF Charter. On 15
April 2010, therefore, SAARC Secretary General issued the notification on the
Charters entry into force. This completed the entire legal process for the SDF.
Of the determined corpus i.e. Initial Paid-up Capital of SDR 200 million
(approx. US$ 300 million), the Secretariat has so far received the full quantum
of the assessed subscription from India and Bhutan. India has additionally sent
US$ 100 million, as its voluntary contribution for Projects on Social
Development. Other Member States are expected to forward respective
subscription in due course.

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South Asian Association For Regional Cooperation

CHARTERS OF SAARC
SAARC Charter (Signed in Dhaka on 08th December 1985)
SAARC Social Charter (Signed in Islamabad on 04th January 2004)
CHARTER OF THE SOUTH ASIAN ASSOCIATION FOR REGIONAL
COOPERATION
We, the Heads of State or Government of BANGLADESH, BHUTAN, INDIA,
MALDIVES, NEPAL, PAKISTAN and SRI LANKA;
1. DESIROUS of promoting peace, stability, amity and progress in the
region through strict adherence to the principles of the UNITED
NATIONS CHARTER and NON-ALIGNMENT, particularly respect for
the principles of sovereign equality, territorial integrity, national
independence, non-use of force and non-interference in the internal
affairs of other States and peaceful settlement of all disputes.
2. CONSCIOUS that in an increasingly interdependent world, the
objectives of peace, freedom, social justice and economic prosperity are
best achieved in the SOUTH ASIAN region by fostering mutual
understanding, good neighbourly relations and meaningful cooperation
among the Member States which are bound by ties of history and culture.

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3. AWARE of the common problems, interests and aspirations of the

peoples of SOUTH ASIA and the need for joint action and enhanced
cooperation within their respective political and economic systems and
cultural traditions.
4. CONVINCED that regional cooperation among the countries of SOUTH
ASIA is mutually beneficial,desirable and necessary for promoting the
welfare and improving the quality of life of the peoples of the region.
5. CONVINCED further that economic, social and technical cooperation
among the countries of SOUTH ASIA would contribute significantly to
national and collective self-reliance.
6. RECOGNISING that increased cooperation, contacts and exchanges
among the countries of the region will contribute to the promotion of
friendship and understanding among their peoples.
7. RECALLING the DECLARATION signed by their Foreign Ministers in
NEW DELHI on August 2, 1983 and noting the progress achieved in
regional cooperation.
8. REAFFIRMING their determination to promote such cooperation within
an institutional framework.
DO HEREBY AGREE to establish an organisation to be known as SOUTH
ASIAN ASSOCIATION FOR REGIONAL COOPERATION hereinafter
referred to as the ASSOCIATION, with the following objectives, principles,
institutional and financial arrangements:
THE OBJECTIVE OF THE ASSOCIATION AS DEFINED IN THE
CHARTES ARE:
To promote the welfare of the people of South Asia and to improve their
quality of life.
To accelerate economic growth, social progress and cultural development in
the region and to provide all individuals the opportunity to live in dignity and to
realize their full potential.
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South Asian Association For Regional Cooperation

To promote and strengthen collective self-reliance among the countries of

South Asia.
To contribute to mutual trust, understanding and appreciation of one another's
problems.
To promote active collaboration and mutual assistance in the economic, social,
cultural, technical and scientific fields.
To strengthen cooperation with other developing countries.
To strengthen cooperation among themselves in international forums on
matters of common interest.
To cooperate with international and regional organizations with similar aims
and purposes.
Afghanistan was added to the regional grouping at the behest of India on 13
November 2005,and became a member on 3 April 2007. With the addition of
Afghanistan, the total number of member states were raised to eight (8). In April
2006, the United States of America and South Korea made formal requests to be
granted observer status.
The European Union has also indicated interest in being given observer status,
and made a formal request for the same to the SAARC Council of Ministers
meeting in July 2006. On 2 August 2006 the foreign ministers of the SAARC
countries agreed in principle to grant observer status to the US, South Korea and
the European Union. On 4 March 2008, Iran requested observer status.
Followed shortly by the entrance of Mauritius.
DHAKA 2009 SUMMIT
The summit accorded observer status to People's Republic of China,
Japan, South Korea and United States of America. The nations also agreed to
organize development funds under a single financial institution with a
permanent secretariat, that would cover all SAARC programs and also ranging
from social, to infrastructure, to economic ones.
CURRENT MEMBERS (alphabetically)
Afghanistan
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Bangladesh
Bhutan
India
Maldives
Nepal
Pakistan
Sri Lanka
OBSERVER
Australia
China
European Union
Iran
Japan
Mauritius
Myanmar (Burma)
South Korea
United States of America

FUTURE MEMBERSHIP
The People's Republic of China has shown its interest in joining
SAARC. While Pakistan and Bangladesh support China's candidature, India is
against the prospect of Chinese membership. China's entry in to SAARC will
likely balance India's overbearing presence there. However, during the 2005
Dhaka summit, India agreed on granting observer status to the PRC along with
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South Asian Association For Regional Cooperation

Japan. During the 14th summit, Nepal along with Pakistan and Bangladesh,
announced their support for the membership of China. China seeks greater
involvement in SAARC, however, finds it too early to apply for full
membership.
Indonesia intends to become an observer as well, and is supported by
SriLanka.
Iran, a state with borders to two SAARC members, has traditionally
enjoyed strong cultural, economic and political relationships with Afghanistan
and Pakistan and has expressed its desire to become a member of the South
Asian organization. On 22 February 2005, the Foreign Minister of Iran, Kamal
Kharrazi, indicated Iran's interest in joining SAARC by saying that his country
could provide the region with "East-West connectivity". On 3 March 2007, Iran
asked to join the SAARC as an observer. SAARC Secretary-General Lyonpo
Chenkyab Dorji responded by saying that Iran's request for observer status
would be taken up during a meeting of ministers of foreign affairs of SAARC
member countries in the 3 April summit in New Delhi.
Russia intends to become an observer as well, and is supported by
India.
Myanmar has expressed an interest in joining as a full member, even
though it is already a member of the ASEAN. If done so, Myanmar will become
the ninth member in the group. India is currently backing Myanmar. Myanmars
military regime officially applied for full SAARC membership in May 2008.
However, the application is still being considered and the government is
currently restricted to observer status.
South Africa has participated in meetings.
LIST OF SAARC SUMMITS
NO

LOCATION

DATE

1st

DHOKA

December 78, 1985

2nd

BANGOLORE

November 2931, 1998

3rd

KATMANDU

November 24, 1987

4th

ISLAMABAD

December 2931, 1988

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South Asian Association For Regional Cooperation

5th

MALE

November 2123, 1990

6th

COLOMBO

December 21, 1991

7th

DHAKA

November 1213, 2005

8th

NEW DELHI

May 24, 1995

9th

MALE

May 1214, 1997

15th

COLOMBO

August 13, 2008

16th

THIMPHU

April 2829, 2010

NO

LOCATION

DATE

1ST

DHOKA

78 December 1985

2ND

Bangalore

1617 November 1986

3RD

Kathmandu

24 November 1987

4TH

Islamabad

2931 December 1988

5TH

Mal

2123 November 1990

6TH

Colombo

21 December 1991

7TH

Dhaka

10-11 April 1993

8TH

New Delhi

24 May 1995

9TH

Mal

1214 May 1997

10TH

Colombo

2931 July 1998

11TH

Kathmandu

46 January 2002

12T
H
13T
H

Islamabad

26 January 2004

Dhaka

1213 November 2005

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14T
H
15T
H
16T
H
17T
H

New Delhi

34 April 2007

Colombo

13 August 2008

Thimphu

2829 April 2010

ADDU

November 2011
(Planned)

SAARC PREFERENTIAL TRADING AGREEMENT

The Agreement on SAARC Preferential Trading Arrangement
(SAPTA) was signed on April 1993 and entered into force on 7 December 1995,
with the desire of the Member States of SAARC (India, Pakistan, Nepal, Sri
Lanka, Bangladesh, Bhutan and the Maldives) to promote and sustain mutual
trade and economic cooperation within the SAARC region through the
exchange of concessions.
The establishment of an Inter-Governmental Group (IGG) to
formulate an agreement to establish a SAPTA by 1997 was approved in the
Sixth Summit of SAARC held in Colombo in December 1991.
The basic principles underlying SAPTA are:
Overall reciprocity and mutuality of advantages so as to benefit equitably all
Contracting States, taking into account their respective level of economic and
industrial development, the pattern of their external trade, and trade and tariff
policies and systems;
Negotiation of tariff reform step by step, improved and extended in successive
stages through periodic reviews;
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South Asian Association For Regional Cooperation

Recognition of the special needs of the Least Developed Contracting States and
agreement on concrete preferential measures in their favour.
Inclusion of all products, manufactures and commodities in their raw, semiprocessed and processed forms.
So far, four rounds of trade negotiations have been concluded under SAPTA
covering over 5000 commodities.

Product Areas
(scope)
All raw
materials

Semi finished
products

Finished
goods

CRITICAL DRAWBACKS
The critical drawbacks may be summed up as follows:- Lack of well-identified target oriented and time-bound programmes. Mostly
seminars and workshops.
- Absence of proper monitoring, implementation and evaluation. So no
assessment of benefits by the Member States on a continuing basis.
- Poor accountability of the TCs and the Member States.
- Non-attendance of SFPs and the absence of sufficiently high-level and
technically sound officials has led to delayed procedures.

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- Inter-sectoral coordination missing. Hence instances of overlapping of

activities.
- Role of NFPs and SFPs not to the expected level. Frequent changes of NFPs
and SFPs and little interaction between NFPs and SFPs within a member
country have exacerbated the problem.
- Cross-cutting issues have not been addressed.
- With the focus of SAARC on high priority issues like trade and economic
cooperation,
SIPA has been relegated to the background. This is particularly serious, because
the SIPA activities provide fodder and complementarity cushion to the
sustainability of trade and investment cooperation also.
- Poor networking arrangements exist between national institutions and centres
of excellence.
- Calendars of activities reveal that rescheduling, postponement or in some
cases cancellation has been a significant feature.
- The decision of the First and Second Special Sessions of the Standing
Committee of holding two activities per TC have resulted in drastically reducing
the number of activities.
- The recommendations of Seminars and Workshops have not been followed
through.
Sometimes the recommendations of the workshops on crucial themes have
tended to be general in nature and have more of individual Member State
perspective rather than much needed regional perspective.
- There has been no institutionalised mechanism by professionals/experts in
SAARC
Secretariat to monitor the SIPA activities :- Changing of the Chairmanship arising out of Member States' domestic
exigencies brings an element of discontinuity. This leads to inordinate delay and
limits the cohesiveness.

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- There exists a fundamental problem of not sustaining the activities once

initiated with all seriousness and purposefulness. The coordination among
various bodies like TCs, MCTCs, NFPs, SFPs, CEC and the Standing
Committee has to be simplified.

SAARC YOUTH AWARD

The SAARC Youth Award is awarded to outstanding individuals from the
SAARC region. The award is notable due to the recognition it gives to the
Award winner in the SAARC region. The award is based on specific themes
which apply to each year. The award recognizes and promotes the commitment
and talent of the youth who give back to the world at large through various
initiatives such as Inventions, Protection of the Environment and Disaster relief.
The recipients who receive this award are ones who have dedicated their lives to
their individual causes to improve situations in their own countries as well as
paving a path for the SAARC region to follow. The Committee for the SAARC
Youth Award selects the best candidate based on his/her merits and their
decision is final.
Previous Winners:
1997: Outstanding Social Service in Community Welfare - Mr. Md. Sukur Sale
(Bangladesh)
1998: New Inventions and Discoveries - Dr. Najmul Hasnain Shah (Pakistan)
2001: Creative Photography: South Asian Diversity - Mr. Mushfiqul Alam
(Bangladesh)
2002: Outstanding contribution to protect the Environment - Dr. Masil Khan
(Pakistan)
2003: Invention in the Field of Traditional Medicine - Mr. Hassan Sher
(Pakistan)
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South Asian Association For Regional Cooperation

2004: Outstanding contribution to raising awareness for TB and/or HIV/AIDS

Mr. Ajij Prasad Poudyal (Nepal)
2006: Promotion of Tourism in South Asia - Mr. Syed Zafar Abbas Naqvi
(Pakistan)
2008: From Himalayan glaciers to verdant plains to coral reefs protecting the
Environment in South Asia - Ms. Uswatta Liyanage Deepani Jayantha (Sri
Lanka)

CONCLUSION
South Asian Association for Regional Cooperation (SAARC) is an economic
and political organization of eight countries in Southern Asia. In terms of
population, its sphere of influence is the largest of any regional organization to
improve their quality of life to accelerate economic growth, social progress and
cultural development in the region and to provide all individuals the opportunity
to live in dignity and to realize their full potentials.

43