SAARC – INTERNATIONAL

News: BIMSTEC as key to a new South Asian regional order

 

What's in the news?

       December 8 is commemorated as SAARC Charter Day.

       It was on this day, 37 years ago, that the South Asian Association for Regional Cooperation (SAARC), an intergovernmental organization, was established by Bangladesh, Bhutan, India, the Maldives, Nepal, Pakistan and Sri Lanka to promote economic growth in South Asia.

       Afghanistan acceded to SAARC later.

 

SAARC:

       SAARC is a regional intergovernmental organization and geopolitical union of states in South Asia.

       Secretariat: The Secretariat of the Association was set up in Kathmandu on 17 January 1987.

 

Objectives:

       The objectives as outlined in the SAARC Charter are,

       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.

       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.

 

Geo-political importance of SAARC:

1. Demography:

       SAARC constitutes 21% of the world’s population and most of its population is young. Thus, cooperation with each other is important to reap demographic dividend and thus economic prosperity of the region.

2. Economy:

       SAARC comprises 3.8% (US$2.9 trillion) of the global economy. Trade and economic cooperation would become the linchpin of regional progress.

       With India as the economic hub, the smaller neighbors would constitute a great role in the economic rise of SAARC.

3. Security:

       Priority to improve the relations in South Asia is essential for realizing development agenda.

       It is important for India to work with its neighbour especially Pakistan to stop terrorism and risks to its citizens.

4. International cooperation:

       It is important for SAARC to support each other at international platforms for shared interests.

       A peace in the region would enhance SAARC’s image and will attract investment in the region. For instance, it is important for India’s ambitions for a permanent seat at the UNSC.

5. Environmental cooperation:

       SAARC can emerge as a model of environmental cooperation for other organizations by supporting each other’s efforts.

       For instance, India has established an International Solar Alliance and is emerging as a hub for renewable technologies and energy. India’s neighbor can be a potential partner for this green initiative.

 

Importance of SAARC for India:

1. South Asia Connect:

       SAARC is the only intergovernmental organization with a pan-South Asia reach. India can judiciously employ it to serve its interests in the entire region.

       South Asia is important for India’s national interest, because South Asia, that is India’s neighborhood, is important for India’s national interests. This is best captured in the current government’s ‘neighborhood first’ policy.

2. Regional stability:

       Nations of SAARC can help in the creation of mutual trust and peace within the region thus promoting stability.

3. Game-changer for India’s Act East Policy:

       SAARC linking South Asian economies with Southeast Asian will further boost economic integration and prosperity to India mainly in the services sector.

4. Geo-strategic significance:

       SAARC can engage Nepal, Bhutan, the Maldives, and Sri Lanka in economic cooperation and development processes to counter China (OBOR initiative).

5. Neighbourhood first policy:

       SAARC gives primacy to the country’s immediate neighbors.

6. Global leadership role:

       It offers India a platform to showcase its leadership in the region by taking up extra responsibilities.

7. Weakened SAARC means heightened instability:

       A weakened SAARC also means heightened instability in other promising regional institutions such as the South Asian University (SAU), which is critical to buttressing India’s soft power in the region.

 

However, SAARC has failed abjectly in accomplishing most of its objectives. South Asia continues to be an extremely poor and least integrated region in the world. The intraregional trade and investment in South Asia are very low when compared to other regions such as the Association of South East Asian Nations (ASEAN) and Sub-Saharan Africa.

 

Issues in SAARC:

1. Poor Economic integration:

       As per the World Bank report, with intra-regional trade at less than 5% of total trade, South Asia is the least integrated region in the world, dwarfed by East Asia’s 35% and Europe’s 60%.

       Independent India’s choice of closed Economic Model led to a steady deterioration of commercial connectivity with the neighbors.

       South Asia Free Trade Agreement (SAFTA) that came into force in 2006 is often highlighted as a prominent outcome of SAARC, but given the presence of sensitive lists, it is yet to be implemented in spirit.

 

2. Pakistan factor:

       Pakistan’s non-cooperation has stalled some major initiatives under SAARC.

       Pakistan has adopted an obstructionist attitude within SAARC by repeatedly blocking several vital initiatives such as the motor vehicles agreement, aimed at bolstering regional connectivity.

       Deepening hostility between India and Pakistan has made matters worse. Since 2014, no SAARC summit has taken place leaving the organization rudderless, and practically dead.

       For example: SAARC-Motor Vehicles Agreement (MVA) and SAARC satellite project were replaced with BBIN-MVA and South Asia satellite respectively (without Pakistan).

3. Asymmetry between India and other member countries:

       They perceive India as “Big Brother” and have been reluctant to implement various agreements under SAARC fearing Indian domination.

4. Unstable Financial Positions:

       SAARC members are financially and economically not very much developed, which creates an uncertain future for this organization.

       SAARC faces shortage of resources, but countries have been reluctant to increase their contribution.

5. Exclusion of Contentious Issues from SAARC Charter:

       The charter of SAARC itself has some self-imposed anomalies as its charter has the provision of not discussing the contentious and bilateral disputes.

       On the one hand, it asks for increased cooperation and exchanges and on the other hand, avoids negotiations on bilateral disputes.

6. Structural constraints:

       South Asian countries share some common features like cheap labour, low incomes, low value-added commodities and comparative advantage in the same commodities as tea, garments etc.

       The intraregional trade cannot be successful in such conditions where the trade and economic structure and industrial infrastructure is similar.

7. BIMSTEC doesn't fulfill SAARC's Vacuum:

       BIMSTEC cannot replace SAARC for reasons such as lack of a common identity and history among all BIMSTEC members.

       Moreover, BIMSTEC’s focus is on the Bay of Bengal region, thus making it an inappropriate forum to engage all South Asian nations.

       SAARC has had 18 summits in the 36 years of its existence, and it has an extensive network of mechanisms, regional centers, and conventions as well as a permanent Secretariat. On the other hand, the BIMSTEC has recently got momentum and is yet to find its role.

 

Measures to Revive SAARC:

1. India's role:

       India should play her role as an equal partner for the stability and cooperation in South Asia.

       SAARC significance has increased in the face of changing global and regional patterns.

2. Formation of Conflict Conciliation Groups:

       The CCGs can be formed for resolving the bilateral disputes when all parties to a particular dispute agree to seek SAARC help either to investigate the problem or conduct a fact finding study.

       Such groups can take up studies of problems relating to exploitation of women and children and other issues on which countries from within the region agree to take steps for.

3. Discussions on International Issues:

       The SAARC Charter must provide for discussions on the international issues among the leaders of the member countries, especially those relating to common issues of international peace and security, trade, environment and technology transfers etc.

4. Resolution of Bilateral Disputes:

       SAARC, being an emerging organization and having the potential to link the resourceful economies of South Asia, must include in its provisions to resolve the bilateral disputes peacefully and the provision of taking all the decisions unanimously.

5. Strengthening Markets:

       India should work with its neighbors in strengthening their markets and its own infrastructure to its neighbors.

6. Engaging With Pakistan:

       China’s incursions in Ladakh don't stop India from attending meetings with the Chinese leadership at the SCO, the Russia-India-China trilateral, the G-20, etc.

       Therefore, it is misplaced that India applies the same logic, for not engaging with Pakistan. India must understand that engagement with Pakistan is very crucial for the revival of SAARC.

7. All of South Asia Approach:

       South Asian countries need to work as a collective to set common standards and promote a more intra-regional, transnational approach towards health security, food security, and job security.

 

India must find its prism to view its South Asian neighborhood having a shared future and acting as a force-multiplier for India’s ambitions on the global stage. India should play her role as an equal partner for the stability and cooperation in the region.