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.