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India and Saarc Prjt Anagha

Jun 02, 2018

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    INDIA AND SAARC

    SAARC:

    The South Asian Association for Regional Cooperation (SAARC) wasestablished at the First SAARC Summit in Dhaka on December 7!" #$!%&'ts members are angladesh" hutan" 'ndia" aldi*es" +epal" ,akistan andSri -anka&

    The abbre*iation" .SAARC stands for The South Asian Association forRegionalCooperation& The mo*e to ha*e an economic regional block among southAsiancountries started taking shape from #$!/& The first summit of se*en southAsiancountries *i0& 'ndia" ,akistan" angladesh" +epal" Sri -anka" hutan and

    aldi*estook place at Dhaka in December #$!% and the SAARC came intoe1istence&The idea behind the formation of SAARC was to ha*e fearlesstensionless progress and prosperit2 in the South Asian Association forRegional cooperation regional group countries&The SAARC Secretariat is

    based in 3athmandu" +epal& The SAARC emerged out of the problemsfaced b2 South Asian countries&

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    The SAARC has got o*er #4%th of world5s population& 't has onl2 6&6 ofworld5s total land area& 't has a ma8or share of total world5s poor population&These countries can be branded as a low per capital income countries& 'ndiais the largest SAARC countr2 ha*ing 946rd of SAARC population whilealdi*es is the smallest island ha*ing population of onl2 6 lakhs& SAARC isa manifestation of the determination of the peoples of South Asia to worktogether towards finding solutions to their common problems in a spirit offriendship" trust and understanding and to create an order based on mutualrespect" e:uit2 and shared benefits& The main goal of the Association is toaccelerate the process of economic and social de*elopment in memberstates" through 8oint action in the agreed areas of cooperation& The SAARC

    policies aim to promote welfare economics" collecti*e selfreliance amongthe countries of South Asia" and to accelerate sociocultural de*elopment in

    the region& The SAARC has de*eloped e1ternal relations b2 establishingpermanent diplomatic relations with the ;

    To accelerate economic growth" social progress and cultural de*elopmentin the region and to pro*ide all indi*iduals the opportunit2 to li*e indignit2 and to reali0e their full potential>

    To promote and strengthen collecti*e selfreliance among the countries ofSouth Asia>

    To contribute to mutual trust" understanding and appreciation of one

    another?s problems>

    To promote acti*e collaboration and mutual assistance in the economic"social" cultural" technical and scientific fields>

    To strengthen cooperation with other de*eloping countries>

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    To strengthen cooperation among themsel*es in international forums onmatters of common interest> and

    To cooperate with international and regional organisations with similaraims and purposes

    Decisions at all le*els in SAARC are taken on the basis of unanimit2& Article@ (9) of the SAARC Charter e1cludes bilateral and contentious issues fromthe ambit of SAARC&

    After 'ndia adopted the polic2 of +SR (+ational Self Reliance) in order toremo*e dependence on foreign aid" 'ndia took the ne1t step of formingSAARC along with the neighbouring countries&

    This step has helped 'ndia de*elop good and cordial relationship with itsneighbouring countries in all aspects i&e& sociall2 politicall2 andeconomicall2& After SAARC being formed b2 'ndia along with of itsneighbouring countries" 'ndia has been able to de*elop trade relations withall the SAARC members&'ndia had the chairmanship of SAARC during the 2ear #$$$7&'ndia hostedthe #7th session of the SAARC council of ministers at +ew Delhi in #$$&Recentl2 the #BthSAARC summit was held in +ew Delhi

    PRINCIPLES

    Cooperation within the framework of the Association is based on respectfor the principles of so*ereign e:ualit2" territorial integrit2" politicalindependence" noninterference in the internal affairs of other states andmutual benefit& Such cooperation is to complement and not to substitute bilateral ormultilateral cooperation& Such cooperation should be consistent with bilateral and multilateralobligations of the member states

    Decisions at all le*els in SAARC are taken on the basis of unanimit2& ilateral and contentious issues are e1cluded from its deliberations&

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    INSTITUTIONAL STRUCTURE

    Summits

    The highest authorit2 of the Association rests with the eads of State or

    o*ernment& During the period #$!%$%" eight meetings of the eads ofState or o*ernment had been held in Dhaka (#$!%)" angalore (#$!)"3athmandu (#$!7)" 'slamabad (#$!!)" alE (#$$/)" Colombo (#$$#)" Dhaka(#$$6)" +ew Delhi (#$$%) and ale (#$$7) respecti*el2&

    Council of inisters

    Comprising the Foreign inisters of member states is responsible for theformulation of policies> re*iewing progress> deciding on new areas ofcooperation> establishing additional mechanisms as deemed necessar2> anddeciding on other matters of general interest to the Association& The Councilmeets twice a 2ear and ma2 also meet in e1traordinar2 session b2 agreementof member states& 't has held fifteen sessions till +o*ember #$$%&

    Standing Committee

    Comprising the Foreign Secretaries of member states is entrusted with theo*erall monitoring and coordination of programmes and the modalities offinancing> determining intersectoral priorities> mobilising regional and

    e1ternal resources> and identif2ing new areas of cooperation based onappropriate studies& 't ma2 meet as often as deemed necessar2 but in practiceit meets twice a 2ear and submits its reports to the Council of inisters& 'thas held twent2 regular sessions and two special sessions till +o*ember#$$%&

    ,rogramming Committee

    Comprising the senior officials meets prior to the Standing Committeesessions to scrutini0e Secretariat udget" finalise the Calendar of Acti*ities

    and take up an2 other matter assigned to it b2 the Standing Committee& ThisCommittee has held fifteen sessions till +o*ember #$$%&

    Technical Committees

    Comprising representati*es of member states" formulate programmes andprepare pro8ects in their respecti*e fields& The2 are responsible for

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    monitoring the implementation of such acti*ities and report to the StandingCommittee& The chairmanship of each Technical Committee normall2rotates among member countries in alphabetical order" e*er2 two 2ears& At

    present" there are twel*e Technical Committees& owe*er" with the mergerof the Technical Committees on ;n*ironment and eteorolog2" beginningfrom #st anuar2 #$$" the number of Technical Committees will be ele*en&

    Action Committees

    According to the SAARC Charter" there is a pro*ision for ActionCommittees comprising member states concerned with implementation of

    pro8ects in*ol*ing more than two" but not all member states& At present"there are no such Action Committees&

    Gther eetings

    During the first decade of SAARC" se*eral other important meetings tookplace in specific conte1ts& A number of SAARC inisterial eetings ha*ebeen held" to focus attention on specific areas of common concern and hasbecome an integral part of the consultati*e structure&So far inisterialle*eleetings ha*e been held on 'nternational ;conomic 'ssues=

    'slamabad (#$!)" Children +ew Delhi (#$!) H Colombo (#$$9)" Iomen in De*elopment

    Shillong (#$!) H 'slamabad (#$$/)" ;n*ironment +ew Delhi (#$$9)"Iomen and Famil2 ealth 3athmandu (#$$6)" Disabled ,ersons 'slamabad (#$$6)" Jouth ale? (#$$B)" ,o*ert2 Dhaka (#$$B) and Iomen = Towards the Fourth Iorld Conference onIomen

    So far" si1 eetings of ,lanners ha*e been held" one in #$!6 and fi*eannuall2 from #$!7 to #$$#& These meetings initiated cooperation inimportant areas such as Trade" anufacturers and Ser*ices> asic +eeds>

    uman Resource De*elopment> Data base on socioeconomic indicators>;nerg2 odelling Techni:ues> ,lan odelling Techni:ues and ,o*ert2Alle*iation Strategies&'n addition" a high le*el Committee on ;conomic Cooperation (C;C) has

    been established in #$$#" for identif2ing and implementing programmes inthe core area of economic and trade cooperation&A threetier mechanism was put in place in #$$%" to followup on the

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    rele*ant SAARC decisions on ,o*ert2 ;radication& The tiers consist ofeeting of Secretaries inCharge of ,o*ert2 ;radication" eeting ofFinance4,lanning Secretaries" and eeting of Finance4,lanning inisters&

    FINANCIAL ARRANGEMENTS IN SAARC

    ember states make pro*ision in their respecti*e national budgets" forfinancing acti*ities and programmes under the SAARC framework includingcontributions to the Secretariat budget and that of the regional institutions&The financial pro*ision thus made is announced annuall2" at the meeting ofthe Standing Committee&

    The annual budget of the Secretariat" both for capital as well as recurrente1penditure" is shared b2 member states on the basis of an agreed formula&

    The initial cost of the main building of the Secretariat" together with allfacilities and e:uipment" as well as that of the anne1 building completed in#$$6 has been met b2 the host go*ernment&

    A minimum of fort2 percent of the institutional cost of regional institutionsis borne b2 the respecti*e host go*ernment and the balance is shared b2 allmember states" according to an agreed formula& Capital e1penditure ofregional institutions which includes ph2sical infrastructure" furnishing"machines" e:uipment etc& are normall2 borne b2 the respecti*e hostgo*ernment& ,rogramme e1penditure of regional institutions is also shared

    b2 member states" according to the agreed formula&

    'n the case of acti*ities under the appro*ed Calendar" the local e1pensesincluding hospitalit2" within agreed limits" are borne b2 the hosto*ernment" while the cost of air tra*el is met b2 the sending o*ernment&

    TRADE AND ECONOMIC COOPERATION

    SAARC has taken important steps to e1pand cooperation among membercountries in the core economic areas& 'n #$$#" a Regional Stud2 on Trade"

    anufactures and Ser*ices (TS) was completed outlining a number ofrecommendations for promoting regional cooperation in the core economicareas& The Council of inisters at its +inth Session in alE in ul2 #$$#endorsed the Stud2 and decided to set up a highle*el Committee on;conomic Cooperation (C;C)& This Committee has so far held si1 meetings&

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    At the Colombo Summit in December #$$#" the eads of State oro*ernment appro*ed the establishment of an 'ntero*ernmental roup(') to seek agreement on an institutional framework under which specificmeasures for trade liberali0ation among SAARC member states could befurthered& ' e*ol*ed a draft Agreement on SAARC ,referential TradingArrangement (SA,TA) during its first two eetings& Subse:uentl2" theCouncil of inisters" upon the recommendation of C;C signed theframework Agreement on SA,TA in Dhaka on ## April #$$6 during theSe*enth SAARC Summit&

    'n the subse:uent four eetings of '" the member states conducted theirbilateral4multilateral trade negotiations in which the2 e1changed concessionsto be offered4sought& The Consolidated +ational Schedules of Concessionswere finalised in the Si1th eeting of the ' held at the SAARC

    Secretariat" 3athmandu on 9/9# April #$$% and subse:uentl2 appro*ed b2the Council of inisters in a2 #$$%& All SAARC member countries ha*eratified the SA,TA Agreement and as per Article 99 of the Agreement"SA,TA will enter into force on 7th December #$$% two 2ears ahead of thetime schedule en*isaged initiall2&

    The Council of inisters at its Fifteenth Session agreed that the full andtimel2 realisation of the benefits of regional economic cooperation re:uired

    (a) the implementation of other related measures such as the remo*al of

    paratariff" nontariff and other trade control barriers within the specifictimeframes and(b) e*entual progression to the creation of a freetrade area in the region&

    The eads of State or o*ernment at their ;ighth SAARC Summit (+ewDelhi" a2 #$$%) noted with satisfaction that the first round of tradenegotiations under SA,TA has been completed& The2 reiterated their firm

    belief that the operationalisation of SA,TA will herald the beginning of anew and significant process of regional cooperation and would lend strengthto SAARC as an institution for promoting the welfare of the peoples ofSouth Asia&

    C;C at its Si1th eeting (+ew Delhi" +o*ember #$$%) recommended thatwith the operationalisation of SAARC ,referential Trading Arrangement(SA,TA)" it is now desirable to work towards remo*al of paratariff andnontariff barriers" widening and deepening the tariff cuts and e1panding the

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    list of products to be included for intraSAARC preferential trade underSA,TA& 't reiterated that the South Asian Free Trade Area (SAFTA) is aclear e*entual goal" at the same time it noted that the progress towards itma2 ha*e to be in gradual stages& To push the SA,TA process forward" itrecommended that the 'ntero*ernmental roup on Trade -iberalisation berecon*ened to conduct the Second Round of Trade +egotiations underSA,TA and proposed that the first meeting of the second round ma2 take

    place in earl2 #$$ and appreciated the offer of Sri -anka to host the same&The Committee also recommended that the first eeting of the Committeeof ,articipants of SA,TA ma2 be held in the third :uarter of #$$ to re*iewthe progress in the implementation of the Agreement&;ach member countr2will notif2 the SAARC Secretariat and the SAARC Chamber of Commerceand 'ndustr2 about their o*erseas bulk purchases& A roup of ;1perts fromResearch 'nstitutions of ember States ha*e been re:uested to commission

    a tripartite stud2 in*ol*ing go*ernments" business and academic sectors toaccelerate the process of e*entual progression to the creation of a freetradearea in the region&

    ROLE OF INDIA:-

    'ndia pla2s a dominant role in SAARC because of its commanding positionin SAARC& Demographicall2 'ndia is the most popular countr2 among theSAARCcountries& 't possess the largest land area and economicall2 also itcommands relati*el2a better position& Though 'ndia itself suffers fromse*eral problems still there is a scopefor 'ndia to pla2 its dominant role inSAARC from both the sides i&e from the side ofrendering helping hand tomember countries of SAARC to tide o*er their problems andfrom the side ofdemanding help from the member countries of SAARC in terms of pilotingthe scheme of 8oint *entures speciall2 in the fields of Cooperation"Agriculture"industr2" energ2" transport" tourism" business" communication"widening of markets etc&The second SAARC summit was held in 'ndia atangalore in #$!&

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    INDIAS CONTRIBUTION TOWARDS SAARC

    'ndia has cooperated acti*el2 in SAARC acti*ities and *igorousl2 promotedtrade and other forms of economic" social and technical cooperation withinSAARC&

    'ndia also acti*el2 supports peopletopeople initiati*es aimed at fosteringgreater mutual understanding and goodwill in the region&

    'ndia is the onl2 SAARC member that shares land borders with fourmembers and sea borders with two& +o other SAARC countr2 shares acommon border with each other&

    'n terms of trade" commerce" in*estments etc& 'ndia is a source of potentialin*estments and technolog2" and a ma8or market for products from all otherSAARC members.

    Gne of the foremost challenges facing South Asia is the issue of po*ert2eradication& At the Twelfth Summit held in 'slamabad in anuar2 9//B" 'ndiaoffered to contribute

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    The stud2 re*eals that there was presence of con*ergence in 'ndia e1ports

    with SAARC countries and in the other words" actual 'ndiaLs e1ports toSAARC countries con*erged towards the estimated e1port potential& AmongSAARC countries" 'ndiaLs e1port potential e1ists for aldi*es" hutan",akistan and +epal& 'ndia is the onl2 SAARC member that shares land

    border with four members and sea border with two& +o other SAARCcountr2 shares a common border with each other& 'n terms of trade"commerce" in*estments etc&" 'ndia is a source of potential in*estment andtechnolog2 and a ma8or market for products from all other SAARCmembers& Therefore" it is essentiall2 in 'ndiaLs interest to put her weight

    behind SAARC

    INDIA'S RELATIONS WITH OTHER SAARC COUNTRIES

    The South Asian Assoc=iation for Regional Cooperation (SAARC) recentl2completed to decadeM> in e1istence& 'n the second decade of its e1istence" themood among member countries is distinctl2 optimistic& There is anincreasing con*iction among these countries that economic cooperationamong the countries of the regon can bring about better and effecti*eregional cooperation& NThis 0Optimism stems from the present note forSAARC in fulfilling an impon&ant task of allowing the forum to pro*ide afor platform formal contact between counties in the region&N? 'ndia?s rapportwith ,akistan would be discused before e1amining 'ndia?s interaction withother SAARC countries&

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    EFFECTS ON INDO-PARELATIONS

    SAARC has failed to resol*e disputes between 'ndia and ,akistan(especiall2 the 3ashmir 'ssue)& The progress of SAARC was limited for

    some 2ears due to the absence of cordial relationship between 'ndia and,akistan&

    SAARC?S inabilit2 to pla2 a crucial role in integrating South Asia is oftencredited to the political and militar2 ri*alr2 between 'ndia and ,akistan&

    owe*er during ,rime inister Atal ihari Pa8pa2eeLs *isit to 'slamabad(for the #9thSAARC summit) ,akistan persuaded 'ndia to resume talksabout maintenance of peace and the stalled composite dialogue" while 'ndiarecei*ed assurances that ,akistan would not allow its territor2 to be a hub for

    terrorist acti*ities& The composite dialogue had then started&

    At present 'ndiaLs e1port to ,akistan are limited& For e1ample in the 2ear9//#9//9 'ndiaLs total e1ports were KBB billion out of which a mere K9/Bmillion went to ,akistan& Gn the other hand" 'ndiaLs e1ports to angladeshstood at K $6/ million and e1ports to Sri -anka at K9 million&

    ,akistan has to pa2 hea*2 price for importing goods from other countriese1cept 'ndia& 'ndiaLs e1ports suffer due to non a*ailabilit2 of neighbouringmarket&

    Along with 'ndia and ,akistan" other countries of SAARC are likel2 to getman2 benefits because of impro*ed '+DG Q ,A3 relations& 'n the recent'ndo,ak dialogue process" there were no winners and losers& The realwinners were the people of South Asia&

    India r!a"i#n $i"% C%ina

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    2 the late #$%/?s the situations become more complicated and China failedto fit into the ri*alr2 between the two super powers and China took its own

    position e*en in the relations between 'ndia and ,akistan& During that periodChina was in confrontation with So*iet

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    e1cept in the case of the landlocked states of +epal and hutan& 'ndia ma2ha*e failed in its efforts to block arms transfer to ,akistan but it has beenmuch more successful in pre*enting

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    'nternational recognition as a ?one of ,eace?& According to habani Senupta" 'ndia?s acceptance of the 0one of peace concept would not ha*eaffected on the 'ndo +epal Treat2" but its impact on the +epalese elitewould ha*e been effecti*e& e further sa2s that it would not make a leastchange in the geopolitical realities of the imala2as or in +epal?s relationwith 'ndia and China& Twent2 2ears later" in the conte1t of the u8ratdoctrine?s new responsi*eness towards the sensiti*ities of neighbours" 'ndiahas agreed to re*iew the 'ndo +epal treat2& There is public opinion in

    +epal against une:ual agreements on the sharing of waters of the ri*ersandak and 3osi& +epal like other neighbours" looks at 'ndian bilateralismas euphemism of for hegemonic diplomac2& The #$$ agreement onIahakali Ri*er s2mbolises the problems of suspicion and mistrust and the

    promise of cooperation& NAt stake is the de*elopment of the whole of+orth;ast and the costs of under de*elopment in the form of political unrest

    and destabilishing population mo*ements across the border&N'6 The #$%/Treat2 established the uni:ue open border between 'ndia and +epal& The'ndian securit2 belie*es that the theor2 about a greater +epal across theTransimala2an region has again been re*i*ed" particularl2 in the conte1tof tlie politicodemographic shifts in Dar8eeling and Sikkim& The reater

    +epal concept is manipulated to gi*e political legitimac2 to hutan?se1pulsion of #"#/"/// people of +epalese orign& +epal wants to 'n*ol*e'ndia to pressurise hutan to take back the -hotsampas& hutan sa2s thatthe2 are +epalee citi0ens& N'ncreasingl2" the management of the challenge of

    population mo*ements refugees" migrants and stateless peoples re:uires acooperati*e regional responds& A regional regime will depoliticise the issueof gi*ing refugee and build up group pressure on states not to make theirciti0ens stateless&N#B The encroachment of 'ndian territor2 b2 the +epaleseciti0ens is another irritant in the relationship between these two countries&G*er %!6$ acres of land along ri*er andak in Iest Champaran district is

    presentl2 reported to be under illegal occupation b2 the +epalese citi0ens%'ndia?s order with +epal is not onl2 open but has become insecure b2 themilitants" criminals and anti'ndia elements& 't is rele*ant to be noted 'S Theindustan Times" +ew Delhi ul2 96" #$$6 here that to curb the menace

    fr6m the militants and criminals" 'ndia has been engagaed in modernisingthe +epal defence structure b2 pro*iding assistance in accordance with the#$%/ Treat2 and Arms Assistance Agreement #$%" pro*ides an importantmilitar2 link between the two countries& A militaril2 stronger +epal wouldreduce Chinese threat to 'ndia through +epal becoming a more effecti*e

    buffer Gnl2 in an atmosphere of peace and friendship" the securit2arrangements are effecti*e and implementati*e& ;*en if one signator2 makes

    #B

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    a half hearted attempt to accept the treaties and arrangements then the effectof the same is diminished& Gne of the biggest criticisms against 'ndia"according to the +epalese" is the 'ndian bureaucrac2 and its mindset to rule

    +epal with a carrot and stick polic2& There should be attitcdinal changeamongst the polic2 makers in 'ndia who would be sensiti*e to +epal?sso*ereignt2 and adhere to good neighbourliness& The draft proposal sent b2'ndia in #$!$ shows the 'ndian minds as to treat +epal with suspicion who"it is said can harm 'ndia?s securit2 interests& The trade relations between'ndia and +epal re:uires special attention& The go*ernment of 'ndia cannotlook after the economic needs of +epalese because of its own compulsor2&'ndia is hard pressed for its resources and its econom2 for its de*elopment&Gn each and e*er2 issue +epal talks about its so*ereignt2 and independence

    being under constant threat and 'ndia talks about its securit2 interests& 'twould be in the interest of both the countries to strike a balance between the

    two& 'ndia and angladesh The problem of angladesh migrants is a ma8ortension between 'ndia and angladesh& Ihat is significant to note here isthat it is engulfed in the fundamentalist political discourse in 'ndia& 't is afact to remember here is that the political parties like &&,& are targetinguslim angladeshi migrants& 'ncapabilit2 of angladesh to pro*ide foodand securit2 to its citi0ens" makes it una*oidable that people will cross the

    border for a li*elihood& Apart from that" 'rtdia should take some of theresponsibilities for the making of en*ironmental 'efugees in angladesh asa conse:uence #of the degradation caused b2 the 'ndoangladesh Farrakaagreement" fencing the border is not an alternati*e& An integrated economicde*elopment of the region is essential for more regional cooperation"despite of natural gas in angladesh which can transform the econom2 ofthe region& Foreign in*estors are looking at 'ndia as the natural market for

    piped natural gas from angladesh& This would remo*e the histor2 ofdistrusi and suspicion" which has been pre*enting cooperation" especiall2after the emergence of angladesh& Anti'ndia propaganda is being launched

    b2 the ruling elite of angladesh& The Farraka Iater arrage Agreement islooked at as the s2mbol of 'ndia?s hegemonic bilateralism& The re*ised #$$7anga Iater Agreement represents an approach more responsi*e to

    sensiti*ities of angladesh& For 'ndia and angladesh" the denial ofsan#=tuar2 to militants across the border is *er2 essential& 'f done so" this can

    bring about better relationship between 'ndia and angladesh& 'ndia has beenbacking militant" Chakma groups like the Shanti hahini while angladeshhas been pro*iding sanctuar2 to insurgent groups like the odos and

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    demarcation of boundaries in*ol*ing fertile island and encla*es& oreo*er"both the countries fre:uentl2 each other in their respecti*e troubledterritories& The bilateral talks and negotiations are not 2et reached in thedesired destination of amicable settlerOient in the issues like sharing ofanga water" Farrakka Iater arrage" ;lectric wire felicing across the

    borders" surprised attacks from angladesh rifles against 'ndia?s orderSecurit2 Forces and the anti'ndia sentiments and all other forms ofinsurgencies& To illustrate this" angladesh has repeatedl2 accused 'ndia ofsupporting the militant wing of the Chakma insurgenc2 of angladesh"where as 'ndia belie*es that angladesh encourage *arious sub*ersi*e andguerrilla acti*ities in the +orth ;astern states of 'ndia such as Tripura and isor am&&B 'ndia and Sri -anka The Tamils are a minorit2 in Sri -anka& Thema8orit2 lnhalalites ha*e followed a polic2 of discrimination against theTamils& This has led to a ci*il war between Tamil groups and Sri -anka&

    Thousands of Tamil refugees ha*e come to 'ndia since the beginning of ci*ilwar in Sri -anka& 'ndia has pro*ided humanitarian relief of the refugees&;motional solidarit2 with their persecuted ethnic kin encouraged the statego*ernment in Tamil+adu to find the militants& 't is alleged that ,rimeinister 'ndira andhi and ,rime inister Ra8i* andhi armed and trainedthe militants&N Sri -ankan ,resident ulius a2awardane?s close pro1imit2with the

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    ancestors of South 'ndia& Sinhala uddhists and indu Tamils were in*ol*edin historical ri*alr2 and antagonism after the ad*ent of South 'ndian in*aderson the 'sland& During the colonial rule" 'ndia and Sri -anka did not ha*eindependent interaction e1cept in late #!?O and #$?O centuries when massindented labour from South 'ndia was recruited on tea and coffee

    plantations& After its independence" Sri -anka began to ha*e a fairl2independent course in its foreign polic2 and 2et maintained cordial andwarm relations with 'ndia& This rela&tionship" which became cordial duringthe period of andarnakes" declined in the late #$7/?s& The :uestion of thestateless 'ndian Tamils in the island nation and the militant demands ofthe Sri -ankan Tamils for a separate ;larn State embittered 'ndoSri -ankanrelations& The problems arising out of di*ided communities spread across theSouth Asian countries are particularl2 intractable when open bordersencourage constant interaction between the populace of these countries&

    'ndoSri -ankan relations also remain strained o*er the discrimination andoccasional mistreatment meted out to Tamils in Sri -anka& 'ndeed" relations

    between 'ndia and Sri -anka ha*e also not impro*ed much due to thewithdrawal of the ',3F following the break of #$!7 'ndoSri -ankan Accordand the hectic democratic efforts of ,resident 3umaratunge for restoring

    peace in the island& oth countries continue to *iew each other withsuspicion regarding the -TT; crisis" while Sri -anka battles as against theincreased hostilit2 of Tamil Tgers who are disrupting the stabilit2 of the'sland with wide connotations for the entire region& Recent reports ha*erepeatedl2 suggested that 'ndia is keeping a cordial relationship towards Sri-anka" e*en Sri -ankan ,resident Chandrika 3umaratunga has lost much ofshine in so far as her peace proposals to end the blood2 ethnic war in theisland remained 8ust a package& eanwhile" attacks b2 the -TT; at softtargets in the capital cit2 ha*e turned Colombo into a ?nightmare? securit2checks" blocks and arrests of minorities ha*e disgruntled the Tamils anderoded much the goodwill the ,resident once commanded&9/ &% 'ndohutan Relations&oth 'ndia and hutan ha*e been to maintain good andcordial relations without an2 mistrust and suspicion& The Treat2 of #$B$

    between 'ndia and hutan in *er2 significant in terms of the interests of both

    the countries& hutan has changed toda2 in all respects" including theeconom2 9/ 3&& De Sil*a" ??Fift2 Jears of Sri -ankan 'ndependence> The,ast olds the Clues"NThe 'ndian ;1press" aroda" anuar2 9$" #$$!" andinternational stature since #$B$& 'n the words of Dawa Tsering" the thenForeign minister of hutan& NThe 'ndohutan ties are a model in'nternational relations toda2& 'ndia is a big power and hutan is a small land

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    locked kingdom& Still" we get along *er2 well& Ihat can be more satisf2ingis this model relationship&

    SAARC: A FAILURE FOR INDIA (VICE-VERSA)**

    SAARC had failed to resol*e conflicts between 'ndia and ,akistan& There isdiscontent still between both the countries&

    SAARC has 2et to become an effecti*e regional organi0ation" largel2because of mutual distrust between 'ndia and its neighbours&

    Also 'ndia?s lukewarm support for SAARC stems from the concern that itsneighbours might coalesce against it to the detriment of 'ndian interests&

    The reluctance of 'ndia and other South Asian countries to turn SAARC intoa forum for resol*ing ma8or regional disputes hampers SAARCLS abilit2 todeal with man2 of South Asia?s economic and political problems

    CO-OPERATION TROUBLES BETWEEN INDIA AND SAARC

    MEMBERSSAARC is structured in a wa2 that often makes regional cooperationdifficult& Thomas Thornton argues that in regional organi0ations it is difficultfor countries to establish balanced relations when one has a significantad*antage in power o*er the other states& 'n the case of SAARC" 'ndia isthe most powerful countr2 in terms of its economic might" militar2 powerand international influence& Thus" 'ndiaLs potential as a regional hegemon2gi*es SAARC a uni:ue d2namic compared to an organi0ation such asAS;A+& ,akistan was initiall2 reluctant to 8oin SAARC due to fears ofSAARC succumbing to 'ndian hegemon2& 'ndeed" if 'ndia does take a

    prominent role in SAARC" it could further fears that 'ndia will use SAARCfor hegemonic purposes& Ihile the smaller states in South Asia recogni0ethat the2 will need 'ndiaLs help to facilitate faster economic growth" the2 arereluctant to work with 'ndia" fearing that such cooperation will admit 'ndiandominance in SAARC&

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    Aside from a few o*ertures to its neighbours" 'ndia has done little to alla2the fears of other South Asian states& The core of these fears is likel2 deri*edfrom the displa2s of 'ndiaLs power b2 +ew Delhi in the past& Reali0ing itsconsiderable ad*antage in militar2 and economic power" 'ndia hasconsistentl2 acted in an arrogant and uncompromising manner with itsneighbours& angladesh is afraid of 'ndia e1ploiting its geographical

    position to redirect water flows *ital to angladeshi agricultural production&+epal and hutan are still worried about 'ndiaLs control o*er their worldtrade and transit links as their geographical position will alwa2s make themdependent on 'ndia& These disputes between 'ndia and its neighbuors ha*edirectl2 affected SAARC&

    +amel2" disputes between South Asian states ha*e undermined SAARCefforts to promote regional trade& These disagreements make consensus

    building and cooperation among SAARC states complicated& Attempting topromote regional cooperation while doing little to resol*e regional conflictsmakes SAARCLS mission looks nearl2 impossible& oreo*er" SAARC hasno institutional mechanisms or punishments capable of pre*enting or full2resol*ing a dispute& Two e1amples illustrate how conflicts in South Asiaha*e pro*en detrimental to SAARC&

    The first in*ol*es 'ndian inter*ention in Sri -anka from #$!#$$/& The'ndian militar2 inter*ention to put down an insurgenc2 b2 The -iberationTigers of Tamil ; ;lam made 'ndoSri -ankan relations tense during thesefour 2ears& Subse:uentl2" the apprehension between 'ndia and Sri -anka wasconsidered a primar2 reason behind Sri -ankaLs lukewarm support forSAARC into economic and social spheres of its member states untilrelations impro*ed with 'ndia&

    A second" more prominent e1ample of a conflict derailing SAARC progressis the 'ndo,akistani conflict& ,akistan has demanded a resolution to its

    dispute with 'ndia o*er the 3ashmir Palle2 before discussing trade relationswith +ew Delhi& ,akistan has enforced this polic2 b2 *iolating ITGregulation for failing to confer ost Fa*ored +ation (F+) status on 'ndia&

    'ndia has recentl2 attempted to impro*e its relationship with the rest ofSouth Asia&

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    inister '&3 u8rat" 'ndia signed a 6/2ear water sharing treat2 withangladesh and a trade and transit treat2 with +epal& 'ndia also 8oined a subregional group within SAARC comprising of angladesh" hutan" +epaland 'ndia& Despite political impediments to trade" *alue of goods smuggledfrom 'ndia to ,akistan *ia a third part2 generall2 totals 9%/%// million per2ear& 'f trade between the states was opened" ,akistan would recei*e cheaperimports due to lower transport costs and the absence of pa2ments to amiddleman& This implies that there is potential for lucrati*e trade between'ndia and ,akistan& oreo*er" if these two states" arguabl2 the largest

    powers in SAARC" pushed for economic cooperation" it is likel2 that otherstates will follow their lead& Therefore" it is not surprising that the 'ndo,akistani dispute o*er 3ashmir is considered a primar2 cause of SAARCLSimpotence&

    Due to these conflicts" the desire for South Asian states to trade with oneanother has been limited& 2 s:uelching trade between South Asian states"the disagreements between 'ndia and its neighbors ha*e limited theeffecti*eness of SAARC trading initiati*es& The South Asian ,referentialTrading Agreement (SA,TA) signed in December #$$% had SAARCcountries reduce tariffs in certain economic areas to promote intra regionaltrade& The proposal was initiall2 met with enthusiasm as 'ndia agreed toreduce tariffs in #/ of the 99 fields recommended b2 SAARC and,akistan agreed to concessions in 6% fields& This statistic emphasi0es a trendin SAARCU 'ndia seems gung ho about intra regional cooperation& 'n #$$%"when SA,TA was being implemented" onl2 6 percent of all South Asiantrade was conducted in the region&Si1 2ears later" the impro*ements seen in regional trade ha*e been marginal&'ndiaLs trade within South Asia accounts for onl2 B percent of its total globaltrade and ,akistanLs trade in the region accounts for merel2 6 percent of itso*erall trade&

    Compared to other countries with similar pro1imities and income le*els"

    intra regional trade among SAARC states is relati*el2 small& uch of thetrade that is conducted in South Asia is also considered s2mbolic andgenerall2 does not in*ol*e goods *ital to the economies of the South Asianstates&oreo*er" some states still ha*e high tariff and nontariff barriers to trade"indicating that the spirit of free trade does not seem ali*e in SAARC&owe*er" SAARC is tr2ing to remed2 this problem&

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    SAARC hopes that the establishment of a South Asian Free Trade Area(SAFTA) b2 anuar2 #" 9// will stimulate trade in the region& owe*er" theagreement to establish this free trade 0one will take #/ 2ears of gradual tariffreduction&

    For a proposal that has alread2 been dela2ed" it will take some genuinepolitical cooperation for the tariff reduction process to run smoothl2& udgingfrom the e1perience of AS;A+" an organi0ation with a better track record in

    producing economic coordination among member states than SAARC"creating a free trade 0one could become difficult& The AS;A+ free tradeagreement (AFTA) has been critici0ed for not producing substantialeconomic interdependence among the region& This lack of success resultsfrom distrust and protectionism among its member states& 'f SAFTA isimplemented" its success will depend on the resolution of conflicts between

    South Asian statesUsomething which seems unlikel2 in the future&

    CONCLUSION

    'ndia needs to pla2 a ma8or role in SAARC'ndia being an important member of the group should initiate steps to ensurethat the nations go be2ond the rhetoric and make the Summit meaningful inthe future& Creation of ;1port ,romotion ones and Special ;conomicones in each SAARC member countr2 as pointed out b2 industr2 bodieswill enhance in*estments between them and will thus encourage intraSAARC in*estments The 'ndian go*ernment has to understand that thee1portimport communit2 needs easier mo*ement of goods" ser*ices" and

    people within the member nations&'ndia should also maintain peace and takeproper and appropriate steps to resol*e disputes and sol*e issues amongstthe SAARC members especiall2 with ,akistan&According to Former ,rimeinister Atal ihari Pa8pa2ee" Countries in the SAARC region ha*e tomake a bold transition from mistrust to trust" from discord to concord andfrom tension to peace&

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