SAARC: An Overview
The South Asian Association for Regional Cooperation (SAARC) was established in 1985 to
promote economic, social, and political cooperation among 8 member states:
Afghanistan* (currently suspended)
Bangladesh
Bhutan
India
Maldives
Nepal
Pakistan
Sri Lanka
Despite its potential, SAARC remains one of the least integrated regional blocs globally due to
persistent challenges.
Detailed Analysis of SAARC: Cooperation, Challenges, and Failures
1. Security Cooperation
Initiatives:
SAARC Regional Convention on Suppression of Terrorism (1987): Aimed at intelligence sharing
and counterterrorism cooperation.
SAARC Terrorist Offences Monitoring Desk (STOMD): Established in 1995 to track terrorist
activities (but rarely used).
Failures:
India-Pakistan Distrust: No joint counterterrorism operations despite shared threats (e.g.,
Mumbai 2008 attacks).
No Extradition Treaty: Criminals/terrorists exploit weak legal frameworks (e.g., Dawood
Ibrahim’s alleged refuge in Pakistan).
Case Study: After the 2016 Uri attack, India canceled its participation in the SAARC Summit,
leading to its collapse.
2. Social Cooperation
Initiatives:
SAARC Development Fund (SDF): Funds projects in health, education, and poverty reduction
(e.g., rural solar energy in Nepal).
SAARC Cultural Centers: Promote arts and heritage exchanges (e.g., SAARC Literature
Festivals).
Failures:
Underfunded: SDF’s capital is only $300 million (compared to ASEAN’s $1.2 billion fund).
Limited Impact: Most programs remain symbolic (e.g., no SAARC-wide student visa scheme).
Case Study: The SAARC COVID-19 Emergency Fund (2020) collected $21 million but had no
coordinated distribution plan.
3. Economic Cooperation
Initiatives:
SAFTA (2006): Aims to reduce tariffs to 0-5%, but sensitive lists protect key sectors (India’s
25% sensitive list).
SAARC Agreement on Trade in Services (SATIS, 2010): Never fully implemented.
Failures:
Low Intra-Regional Trade (5%): Due to:
Non-Tariff Barriers (NTBs): India’s strict pharma standards block Bangladeshi generics.
Political Boycotts: Pakistan denies India MFN status since 1996.
Failed SAARC Motor Vehicles Agreement (MVA): Blocked by Pakistan in 2015.
Case Study: Bangladesh-India Trade: Despite SAFTA, Bangladesh faces anti-dumping duties
on jute exports.
4. Political Cooperation
Initiatives:
Annual Summits: Only 18 held since 1985 (last full summit in 2014).
SAARC Secretariat (Kathmandu): Weak administrative power.
Failures:
No Conflict Mediation: Silent on Kashmir, water wars, and refugee crises (e.g., Rohingya influx).
India’s Dominance: Smaller states (Nepal, Bhutan) resist integration to avoid Indian overreach.
Case Study: 2015 Nepal-India Blockade: SAARC failed to intervene despite Nepal’s fuel crisis.
Reasons for Ineffectiveness
1. Interstate Conflicts & Geopolitical Tensions
India-Pakistan Rivalry: Blocks 70% of SAARC initiatives (e.g., India boycotts summits if
Pakistan attends).
China’s Shadow: BRI projects divide SAARC (e.g., Maldives and Nepal tilt toward China).
2. Natural Resource Conflicts
Water Wars:
India-Pakistan: Indus Water Treaty disputes (e.g., Kishanganga Dam arbitration).
India-Bangladesh: Teesta River agreement stalled since 2011.
Energy Disputes: Nepal’s hydropower projects delayed by Indian contractors.
3. India’s State-Centric Posture
Economic Bullying: India’s 2020 wheat export ban hurt Bangladesh and Nepal.
Bypassing SAARC: Prefers BIMSTEC (includes Myanmar, Thailand) and BBIN (excludes
Pakistan).
4. Weak Institutional Mechanisms
No Enforcement: SAARC resolutions are non-binding (e.g., no action on climate change pacts).
Bureaucratic Delays: SAARC Satellite (2017) took 4 years to launch due to procedural issues.
5. Lack of Economic Integration
Trade with Outsiders: Over 85% of South Asia’s trade is with the EU, China, and the US.
Poor Connectivity: Only 5 functional cross-border rail links in the entire region.
Case Studies of Failure
SAARC Energy Grid (2014 Proposal): Failed due to India-Pakistan tensions.
SAARC Food Bank: Never used during crises (e.g., 2022 Pakistan floods).
SAARC Visa Exemption Scheme: Limited to diplomats and elites.
Can SAARC Be Fixed?
Problem Solution Obstacle
India-Pakistan Hostility Neutral mediation (e.g., UN, ASEAN-style dialogue) Mutual distrust
Weak Institutions Empower Secretariat (e.g., like EU Commission) Resistance from
dominant states
Low Trade Remove NTBs, expand SAFTA Protectionist lobbies
China’s Influence Balance BRI with SAARC projects Debt diplomacy
Verdict: SAARC is structurally flawed due to geopolitics. Alternatives like BIMSTEC are gaining
traction.
Debate: Should SAARC be dissolved and replaced with a new bloc without India and
Pakistan?