Case on Asean and Saarc

Presented by: Harsh jain

PGDM, Finance, Roll-5130

Why ASEAN is successful and SAARC has been unsuccessful?

ABOUT: ASEANAssociation of Southeast Asian nations or

ASEAN, was estabilished on 8 August 1967.Signing of the ASEAN declaration (Bankok

declaration) by the founding fathers of ASEAN namely Indonesia, Malaysia, Philipines, Singapore and Thailand.

After that Brunei Darussalam, Viet Nam, Cambodia, Laos and Myanmar making up what is today the ten member states of ASEAN.

AIMS AND PURPOSESTo accelerate the economic growth, social

progress, and cultural development in the region through joint endeavours in the spirit of equality and partnership in order to strengthen the foundation for a prosperous and peaceful community of Southeast Asian Nations.

To promote active collaboration and mutual assistance on matters of common interest in the economic, social, cultural, technical, scientific and admistrative fields.

To promote Southeast Asian studies.

AIMS AND PURPOSESTo provide assistance to each other in the

form of training and research facilities in the educational, professional, technical, and administrative spheres.

To maintain close and beneficial cooperation with existing international with similar aims and purpose and explore all avenues for even closer among themselves.

To promote regional peace and stability through abiding respect for justice and the rule of law in the relationship among countries of the region and adherence to the principles of the United Nations charter.

PRINCIPLESMutual respect for the independence,

sovereignty, equality, territorial integrity, and national identity of all nations.

The right of every state to lead its national existence free from external interferences, subversion of coercion.

Non-interference in the internal affairs of one another

Settlement of differences or disputes by peaceful manner

Renunciation of threat or use of forceEffective cooperation among themselves.

REASON FOR SUCCESSThere is a very strong commitment among

ASEAN members to cooperation. Cooperation for the benefit of all and cooperation for stability and peace of the origin.

There is also a very strong commitment to pragmatism. It has been pragmatic in ways that develop cooperation among members in undertaking various projects.

ASEAN leaders and ministers are never tired of seeking consensus.

ASEAN has been successful in reducing the level of tariffs operating in the region

REASON FOR SUCCESSIt represents 550 million people.It’s a larger trade block than North America

and Western Europe.In ASEAN all countries are of equal

geographic size.Levels of economic development is the same

in all countries.All of them had similar economic policies. They all introduced economic liberalization in

1960s which further accelerated economic growth.

Common fear of communist China.

ABOUT: SAARCSouth Asian Association for Regional

Cooperation was established by 7 countries namely India, Bangladesh, Bhutan, Pakistan, Maldives, Nepal and Srilanka on 8 Dec 1985.

Later on Afghanistan joined SAARC in April 2007.

The headquarter of South Asian Association for Regional Cooperation is Kathmandu.

OBJECTIVESTo improve the quality of life & welfare of

the people of the SAARC member countries.

To develop the region economically, socially & culturally.

To provide the opportunity to the people of the region to live in dignity & to explore their potentialities.

To enhance the self reliance of the member countries jointly.

OBJECTIVESTo provide conducive climate for creating

& enhancing mutual trust, understanding and application of one another’s issues.

To enhance the mutual assistance among member countries in the areas of economic, social, cultural, scientific & technical fields.

To enhance the co-operation with other developing economies.

To have unity among member countries.

REASON FOR FAILURESAARC represents 22% of humanity.

In South Asia, India is the largest country. It occupies more than 70% of geographical area. So, other nations feel that strengthening SAARC means empowering India.

Serious bilateral disputes between two major south asian powers i.e., India & Pakistan.

Some bilateral disputes and differences between other member countries i.e., India & Bangladesh, India & Nepal, Nepal & Myanmar, Pakistan & Bangladesh.

REASON FOR FAILUREVast difference in economic development.

India is developed economy of South Asia other countries are less developed.

Purchasing power of these countries is very low.

They cannot act even as a market of

Indian goods.

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