.
The recently concluded 17th Summit of the South Asian Association for Regional Cooperation (SAARC) in Maldives has acknowledged that, despite the India-Pakistan tussle, there is no other way to snub this regional forum.

 

The increasing participation of the Observer States, which are nine in strength at present, and their interest and support for the regional grouping, is another crucial reason why SAARC is growing significantly.

Since its inception in 1985, after holding 17 summits, SAARC has gone through a tremendous change, although the India-Pakistan rivalry is always seen as a major obstacle for progress.  In the midst of pockets of growth and prosperity, the region is still marred by widespread poverty, inequality, and unemployment. There has been little headway made on creating a South Asian Economic Union that was envisioned in 11th SAARC Summit held in Kathmnadu.

Intra-regional trade and investment flows remain one of the lowest in the world due to the constraints like poor physical connectivity, an energy crisis, and a trust deficit among the member states.

Lately, a large chunk of the region has been affected by terrorism, and is emerging as hot-bed for breeding terrorists. Nations like India, Pakistan. and Afghanistan have been trying to overcome the effects of terrorism but results are not bearing any fruits as of late.

Issues of climate change and its adverse impact on livelihoods is taking its toll. Implementation of South Asian Free Trade Agreement (SAFTA) is becoming a distant dream. It has been a major agenda for decades to remove trade barriers among the member states, but results have not been forthcoming. Political commitment and willpower within the member states is key to implementation of the decision, accords. and agreements, but due to the poor political stability and lack of good governance system, implementation of past commitments and accords remain a Herculean task. This has caused some analysts to become very critical of the SAARC process, and some have labeled it as “a dead body.”

None of the member states, as of now, have internalized SAARC’s commitments and decisions in national policies and programs. However, a series of declarations during the recent SAARC Summit has brought the SAARC process back to life.

The desire and appetite to implement the SAFTA, a key component for a regional trade boost, is under consideration. The Maldives declaration stated that the Summit has directed the SAFTA Ministerial Council to intensify efforts to fully and effectively implement SAFTA; work on a reduction in Sensitive Lists, as well as early resolution of non-tariff barriers; and expediting the process of harmonizing standards and customs procedures. The recently concluded summit also directed Finance Ministers of the member states to chart out a proposal that would allow for greater flow of financial capital and intra-regional long-term investment, which could pave a way for favorable investment opportunities.

Some key achievements of SAARC addressed during the summit was the realization of the Regional Railways Agreement and the Motor Vehicles Agreement to connect the region by various means of transportation. The establishment of the SAARC Development Fund and SAARC University in India, as well as cooperation on the issues of climate change and energy crisis, are some welcome steps of the SAARC process. The agreement to establish of a South Asian Postal Union, in a nod to spending an appropriate proportion of their national income on renewable energy technologies, is subject to the approval of national arrangements. SAARC member countries expressed their concerns about the continuing threat of terrorism in all its forms and manifestations, and transnational organized crime, especially illegal trafficking in narcotic drugs and psychotropic substances, trafficking in persons and small arms, and increased incidents of maritime piracy in the region. They reiterated their resolve to fight all such menaces.

In his speech in the summit, Indian Prime Minister Dr. Manmohan Singh pledged to promote fair trade in the region. He spoke positively of the progress made in SAARC - terming it "impressive" - and pointed out that many sectors including trade, transport, health, and education have benefited from it. He said, "Our summit is taking place at a time when the West is having an economic crisis. In the meantime, developing countries like ours will be squeezed for capital and markets, and we should look for innovative solutions within South Asian region."

A strong regional bond is in the works, but its original dream to emerge as a competitor to ASEAN and the EU will take more time to develop.

Anil Giri is based in Kathmandu, Nepal, as a senior correspondent with The Kathmandu Post, covering foreign affairs, diplomacy, and international relations. He is also a contributor to many international media outlets, including AHN, Korea Times, BBC, and The Guardian.

About
Anil Giri
:
The views presented in this article are the author’s own and do not necessarily represent the views of any other organization.

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SAARC: A Crusade for Regional Integration

November 18, 2011

The recently concluded 17th Summit of the South Asian Association for Regional Cooperation (SAARC) in Maldives has acknowledged that, despite the India-Pakistan tussle, there is no other way to snub this regional forum.

 

The increasing participation of the Observer States, which are nine in strength at present, and their interest and support for the regional grouping, is another crucial reason why SAARC is growing significantly.

Since its inception in 1985, after holding 17 summits, SAARC has gone through a tremendous change, although the India-Pakistan rivalry is always seen as a major obstacle for progress.  In the midst of pockets of growth and prosperity, the region is still marred by widespread poverty, inequality, and unemployment. There has been little headway made on creating a South Asian Economic Union that was envisioned in 11th SAARC Summit held in Kathmnadu.

Intra-regional trade and investment flows remain one of the lowest in the world due to the constraints like poor physical connectivity, an energy crisis, and a trust deficit among the member states.

Lately, a large chunk of the region has been affected by terrorism, and is emerging as hot-bed for breeding terrorists. Nations like India, Pakistan. and Afghanistan have been trying to overcome the effects of terrorism but results are not bearing any fruits as of late.

Issues of climate change and its adverse impact on livelihoods is taking its toll. Implementation of South Asian Free Trade Agreement (SAFTA) is becoming a distant dream. It has been a major agenda for decades to remove trade barriers among the member states, but results have not been forthcoming. Political commitment and willpower within the member states is key to implementation of the decision, accords. and agreements, but due to the poor political stability and lack of good governance system, implementation of past commitments and accords remain a Herculean task. This has caused some analysts to become very critical of the SAARC process, and some have labeled it as “a dead body.”

None of the member states, as of now, have internalized SAARC’s commitments and decisions in national policies and programs. However, a series of declarations during the recent SAARC Summit has brought the SAARC process back to life.

The desire and appetite to implement the SAFTA, a key component for a regional trade boost, is under consideration. The Maldives declaration stated that the Summit has directed the SAFTA Ministerial Council to intensify efforts to fully and effectively implement SAFTA; work on a reduction in Sensitive Lists, as well as early resolution of non-tariff barriers; and expediting the process of harmonizing standards and customs procedures. The recently concluded summit also directed Finance Ministers of the member states to chart out a proposal that would allow for greater flow of financial capital and intra-regional long-term investment, which could pave a way for favorable investment opportunities.

Some key achievements of SAARC addressed during the summit was the realization of the Regional Railways Agreement and the Motor Vehicles Agreement to connect the region by various means of transportation. The establishment of the SAARC Development Fund and SAARC University in India, as well as cooperation on the issues of climate change and energy crisis, are some welcome steps of the SAARC process. The agreement to establish of a South Asian Postal Union, in a nod to spending an appropriate proportion of their national income on renewable energy technologies, is subject to the approval of national arrangements. SAARC member countries expressed their concerns about the continuing threat of terrorism in all its forms and manifestations, and transnational organized crime, especially illegal trafficking in narcotic drugs and psychotropic substances, trafficking in persons and small arms, and increased incidents of maritime piracy in the region. They reiterated their resolve to fight all such menaces.

In his speech in the summit, Indian Prime Minister Dr. Manmohan Singh pledged to promote fair trade in the region. He spoke positively of the progress made in SAARC - terming it "impressive" - and pointed out that many sectors including trade, transport, health, and education have benefited from it. He said, "Our summit is taking place at a time when the West is having an economic crisis. In the meantime, developing countries like ours will be squeezed for capital and markets, and we should look for innovative solutions within South Asian region."

A strong regional bond is in the works, but its original dream to emerge as a competitor to ASEAN and the EU will take more time to develop.

Anil Giri is based in Kathmandu, Nepal, as a senior correspondent with The Kathmandu Post, covering foreign affairs, diplomacy, and international relations. He is also a contributor to many international media outlets, including AHN, Korea Times, BBC, and The Guardian.

About
Anil Giri
:
The views presented in this article are the author’s own and do not necessarily represent the views of any other organization.