Project report on saarc

PROJECT REPORT ON

SAARC (South Asian Association for Regional

Cooperation)

SUBMITED TO SUBMITED BY

PG DEPARTMENT OF SUKHCHAIN AGGARWAL

COMMERCE B.A.F. 1st

ROLL NO. 9006

TABLE OF CONTENETS

INTRODUCTION

STRUCTURE

HISTORY

SAARC COUNTRIES

AGREEMENT

FUNCTIONS

SAARC SUMITS

OBJECTIVES

CONCLUSION

REFERENCE

INTRODUCTION

Late President Shaheed Ziaur Rahman of Bangladesh was the pioneer to propose South Asian Association for Regional Cooperation (SAARC) in 1980 and all the Seven Member States (Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka) agreed to the proposal to bring the SAARC in reality. On the 8th December 1985, the South Asian Association for Regional Cooperation (SAARC) was born with the signing the Charter by the Heads of Government; in the history first SAARC summit meeting. The Fourteenth Summit meeting of the South Asian Association for Regional Cooperation (SAARC) held in New Delhi, India on April 3-4, 2007. Now the number of member states has become eight. They considered the SAARC to be a tangible manifestation of their determination to cooperate regionally, to work together towards finding solutions towards their common problems in spirit of friendship, trust and mutual understanding and to the creation of an order based on mutual respect, equity and shared benefits. The Heads of States of Government reaffirmed that their fundamental goal was to accelerate the process to economic and social development of their respective countries through the optimum utilization of their human and material resources, so as to promote the welfare and prosperity of their people and to improve their quality of life. They were conscious that peace and security was an essential prerequisite for the realization of the objectives.

SAARC Member States are frequently affected by various phenomena of meteorological, hydrological, oceanographic, seismological origin natural disasters such as monsoon rain, tropical cyclones, storm surges, severe thunderstorms, tornadoes, floods, droughts, earthquake, El Nino, La Nina etc. almost every year. As a result a large number of people in the SAARC region are affected by these meteorological events, causing huge loss of lives and properties worth millions of dollars. These natural disasters cannot be controlled or stopped. But the loss of lives and damage to properties caused by natural disasters can be reduced considerably by issuing timely and accurate forecast of the impending disasters. So, weather forecast plays a vital role and there is no doubt that weather forecasts are of immense economic value and are useful in all aspects of economic activities of human being.

Besides these, SAARC Member countries are mainly agricultural countries. Agriculture and weather/ climatic conditions are closely related. Climate analysis assumes a great significance in nearly every phase of agricultural activity, from the selection of sites to the harvesting and from long term planning to daily operation. Farmers require the ideal time for sowing and planting to minimize the losses as well as maximize production. Each crop has optimum maximum and minimum temperature conditions. Plant growth ceases when the temperature drops below a certain minimum value or exceeds a certain maximum value. Between these limits, there is an optimum temperature favouring the most rapid growth.

The climate water balance provides an assessment of water surplus, water deficit and run-off. The analysis of climate balance is required for estimating water requirements of crops. Detail analysis of climatic data enables to:

a)Determine the maximum and minimum temperature condition for optimum production of crop.

b)Determine the most suitable time for sowing and planting etc. Accurate and timely forecast for proper timing for sowing, planting, harvesting, irrigation and applications of fertilizer and pesticides will greatly help to increase crop production, reduce losses and decrease costs. This needs to strengthen the agro-metrological forecast over the SAARC Member countries.

Meteorology knows no geographical and political boundaries. This subject demands global cooperation. Almost every weather event affects the SAARC Member countries every year. This disastrous weather causes colossal loss of lives and damages to properties over this region, which can be reduced by issuing accurate, dependent and timely weather forecast. We are therefore, dependent on each other for meteorological observation, prediction and warning. So, it was felt to establish a common platform to carry out research, mitigation of these disasters and to help this region to achieve and continue the sustainable socio-economic development of SAARC Member countries, meteorology was one of the proposition to be agreed upon by the Member States.

The SAARC Group of Experts Meeting on the establishment of the SMRC was held during 25-26 November 1992 in Dhaka, Bangladesh. The Group had before them the revised version of the proposal, which was earlier submitted by Bangladesh to the Technical Committee on Meteorology (TCM) meeting held in April 1992 at Karachi. The Group discussed the revised proposal in detail and considering the cost involved towards the establishment of the Centre in the original form and considering the financial constraints of the member countries and the existing facilities in the region, the Group recommended that SMRC, as offered by Bangladesh, be established in Dhaka and should concentrate more on the research aspects of weather forecasting rather than on the operational aspects of the medium and long-range forecasting. While doing so, the existing scientific and technical facilities in the region should be availed of through networking arrangements with the Centre. The Group of Experts Meeting Recommended the following functions for SMRC:

Functions of the Centrea) Undertaking research relevant to weather prediction and better understanding of

monsoon and other weather phenomena of particular interest to the region;

b) Compiling climatological information for the region required for weather forecasting and agricultural activities;

c) Organizing special observations or observing periods for monitoring special weather phenomena of interest to the region for collecting data and undertaking research;

d) Developing a networking system between the Centre and the member countries in order to get data to undertake its activities and to provide the processed information to the members.

Subsequently, a Special Meeting of the Governing Board of SMRC was held on 19-20 October 2003 at Dhaka, Bangladesh. The Board reviewed all the functions of SMRC and recommended the following activities for the next 10 years:

i) To undertake/promote research for better understanding of the various meteorological phenomena of particular interest to the SAARC Region, with a view to enhancing the capability of National Meteorological Services (NMSs) of the Member States, particularly in the field of early warning to provide support for preparedness and management of natural disasters.

ii) To undertake research in climate change and related issues in the SAARC Region.

iii)To undertake collaborative research in the above mentioned fields with the NMSs and research institutions in the SAARC region.

iv) To develop and enhance linkages with NMSs of the SAARC Region.v) To develop cooperative endeavours with international organizations in pursuance

of the above objectives.

As of today, SMRC has been functioning and conducting research based on the above mandates.

The "SAARC Meteorological Research Centre (SMRC)" came into existence in Dhaka, Bangladesh to reflect the common aspiration of the Member States for collective research in Meteorology and to improve the weather prediction techniques of this region. Honourable Prime Minister Begum Khaleda Zia of Bangladesh inaugurated the SAARC Meteorological Research Centre (SMRC) on 02 January 1995. Initially SMRC was hosted in the Abhawa Bhaban of Bangladesh Meteorological Department (BMD) from 1995 to 2005. The Government of the People's Republic of Bangladesh allotted 1.22 acres of land at Sher-E-Bangla Nagar and constructed SMRC building. SMRC started functioning in its own building since August 2005.

STRUCTURE OF THE CENTRE

The Centre has been started with the following divisions:

i.Theoretical Division: This division consist, of experienced 1 (One) Head of the Division and 2 (Two) Scientists with background in tropical meteorology, numerical weather predication techniques especially for use in the tropics, 4 (Four) Research Assistant and I (One) Messenger. It will be responsible to undertake research relevant to weather prediction and better understanding of various aspects of monsoon and other weather phenomena of particular interest in the region. The total strength of the division will be 8 persons comprising scientist and support staff.

ii.SYNOPTIC DIVISION: This division is consist of 1 (One) Head of the Division and 2 (Two) Scientists with experience in analysis and forecasting of weather in the region, 4 (Four) Research Assistant and I (One) Messenger. This division will prepare appropriate synoptic climatology of the region and build synoptic models for systems associated with large-scale monsoon activity. The group may also carry out large-scale diagnostic studies and plan special observation programme for studios on the monsoon and interpret numerical products in the terms of weather and other atmospheric phenomena. The division will also compile climatological information for the region. The division will organize special observation or observing periods for monitoring special weather phenomena of interests to the region. The total strength of this division will be 8 persons comprising of scientists and supporting staff.

iii. Documentation Division: This division is consisting of 1 (One) Documentation Officer, 2 (Two) Research Assistant and I (One) Documentation Assistant and 1 (One) Messenger.

IV.ADMINISTRATION AND FINANCE DIVISION: This Division consists of all administration, finance and management staff for the efficient operation of the Centre. The divisions have 1 (One) Administrative Officer, 2 (Two) Admin. Asstts., 2 (Two) Account Asstts., 2 (Two) Stenographer, 2 (Two) Steno Typists, 1 (One) Store Keeper, 2 (Two) Drivers and 2 (Two) Messengers. Though various groups are responsible for research and development in their respective fields, they will work in close collaboration with each other. This will be desirable for integration of various research efforts for optimal utilization of the expertise and knowledge developed by the Centre.

HISTORY OF SAARC

The South Asian Association for Regional Cooperation (SAARC) comprises the seven countries of South Asia, i.e.Bangladesh, Bhutan, India, the Maldives, Nepal, Pakistan and Sri Lanka.

It is an Association based on the consciousness that in an increasingly interdependent world, the objectives of peace, freedom, social justice and economic prosperity are best achieved in the South Asian region by fostering mutual understanding, good neighbourly relations and meaningful cooperation among the Member States which are bound by ties of history and culture.1

The idea of regional cooperation in South Asia was first mooted in May 1980. After consultations, the Foreign Secretaries of the seven countries met for the first time in Colombo in April 1981. This was followed by a meeting of the Committee of the Whole in Colombo in August-September 1981, which identified five broad areas for regional cooperation.

The Foreign Ministers of South Asia, at their first meeting in New Delhi in August 1983, adopted the Declaration on South Asian Regional Cooperation (SARC) and formally launched the Integrated Programme of Action (IPA) initially in five agreed areas of cooperation namely, Agriculture; Rural Development; Telecommunications; Meteorology; and Health and Population Activities.

The Heads of State or Government at their First SAARC Summit held in Dhaka on 7-8 December 1985 adopted the Charter formally establishing the South Asian Association for Regional Cooperation (SAARC).

The objectives, principles and general provisions contained in the SAARC Charter are as follows:

Objectives! 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 and to provide allindividuals the opportunity to live in dignity and to realize their full potential;

! To promote and strengthen collective self-reliance among the countries of South Asia;

! To contribute to mutual trust, understanding and appreciation of one another’s problems;

! To promote active collaboration and mutual assistance in the economic, social, cultural, technical and scientificfields;

! To strengthen cooperation with other developing countries;

! To strengthen cooperation among themselves in international forums on matters of common interests; and

! To cooperate with international and regional organisations with similar aims and purposes.

Principles! Cooperation within the framework of the Association is based on respect for the principles of sovereign equality,territorial integrity, political independence, noninterference in the internal affairs of other States and mutual benefit;

! Such cooperation is to complement and not to substitute bilateral or multilateral cooperation; and

! Such cooperation should be consistent with bilateral and multilateral obligations of Member States.3

SAARC COUNTRIES

Established on December 8, 1985, South Asian Association For Regional Cooperation, popularly known as SAARC. SAARC is a unique concept. This esteem group is the one combined vision of eight different countries of South-east Asia likeAfghanistan, Bangladesh, Bhutan, India, Maldives, Nepal,Pakistan and Sri Lanka. These SAARC nations are home to nearly 1.5billion people or about 22% of world’s population.

So, the Heads of fostering mutual understanding, meaningful cooperation and good neighbourly relations among these nations.the State or Government of these aforementioned countries has created SAARC, keeping in view the welfare of the people, peace, stability and progress of South Asian region by

AGREEMENT

1) The objective of these rules is to determine the origin of products eligible for preferential concessions under SAPTA.Products, which have achieved the status ‘originating in India’, are eligible for preferential tariff treatment upon imports into participant countries.

2) Following products are considered as originating in India, if they are consigned directly to a participant country.

a) Products that are wholly obtained in India, as defined at 4 below.

b) Products obtained in India in the manufacture of which, in addition to the materials referred to at 4 below and materials originating in participant countries, materials imported from non – participant countries and / or materials of undetermined origin are also used, provided the value of materials imported from non – participant countries and / or materials of undetermined origin does not exceed 50% of the f.o.b. value of the product, subject to condition detailed at 5 below.

3) For the purpose of 2 (b), value of non-originating materials means the c.i.f. value at the time of importation of such materials or, if this is not known and cannot be ascertained and proved, the first ascertainable price paid for the materials in India.

4) Within the meaning of 2 (a) above, the following are considered as wholly obtained in India.

(a) raw or mineral products1 extracted from its soil, its water or its seabed;

(b) agricultural products2 harvested there;

(c) animals born and raised there;

(d) products obtained from animals referred to in clause (c) above;

(e) products obtained by hunting or fishing conducted there;

(f) products of sea fishing and other marine products taken from the high seas by its vessels3,4;

(g) products processed and/or made on board its factory ships4,5 exclusively from products referred to in clause (f) above;

(h) used articles collected there, fit only for the recovery of raw materials;

(i) waste and scrap resulting from manufacturing operations conducted there;

(j) goods produced there exclusively from the products referred to in clauses (a) to (i) above.

5) Products which comply with origin requirements provided for at 2 and which are

used by a participant as input for a finished product eligible for preferential treatment by another participant are considered as a product originating in the territory of the participant where working or processing of the finished product has taken place provided that the aggregate content originating in the territory of the participant is not less than 60 per cent of its f.o.b. value6.

6) The following are considered to be directly consigned from India to the importing country.

a If the products are transported without passing through the territory of any non – participant country.

b The products whose transport involves transit through one or more non – participant countries with or without transhipment or temporary storage in such countries; provided that

(i) the transit entry is justified for geographical reason or by considerations related exclusively to transport requirements;

(ii) the products have not entered into trade or consumption there; and

(iii) The products have not undergone any operation there other than unloading and reloading or any operation required to keep them in good condition.

7) When determining the origin of the products, packing forms a whole with the product it contains.

FUNCTION OF SAARC

The functions of the SAARC Disaster Management Centre are:

a. to collect, compile, document and disseminate data, information, case studies, indigenous knowledge and good practices relating to disaster management particularly from the Member Countries;

b. to analyze information, undertake research and disseminate research findings on disaster management among the Member Countries;

c. to develop educational materials and conduct academic and professional courses on disaster management;

d. to organize training and awareness programmes for various stakeholders on disaster management for the Member Countries;

e. to develop training modules on various aspects on disaster management and conduct programmes of Training for Trainers including simulation exercises;

f. to provide assistance in the formulation of policies, strategies, disaster management framework and any other assistance as may be required by the Member Countries or organizations and institutions nominated by the Member Countries;

g. to undertake, organize, facilitate and participate in workshops, conferences, seminars, lectures etc on various aspects of disaster management in the Member Countries;

h. to undertake publication of journals, research papers and books and establish and maintain online resource centre in furtherance of the aforesaid objects;

i. to collaborate with other SAARC Centres, particularly SMRC, SCZMC and SAARC Forestry Centre to achieve synergies in programmes and activities

SAARC SUMMITS

First summit

The first summit was held in Dhaka, Bangladesh on 7–8 December 1985, and was attended by

the presidents of Bangladesh, Maldives,Pakistan and Sri Lanka, the kings of Bhutan and Nepal,

and the prime minister of India.[1] They signed the SAARC Charter on 8 December 1985, thereby

establishing the regional association, and established study groups on the problems of

terrorism and drug trafficking, as well as planning a ministerial-level meeting about GATT, and a

ministerial-level conference on increasing the participation of women at the regional level.[1] The summit also agreed to establish a SAARC secretariat and adopted an official SAARC

emblem.[1]

Second summit

The second summit was held in Bangalore on 16–17 November 1986, and was attended the

presidents of Bangladesh, Maldives and Sri Lanka, the kings of Bhutan and Nepal, and the prime

ministers of India and Pakistan.[2] It was announced that the secretariat would be established on

16 January 1987, with Abul Ahsan as the first Secretary-General.[2] The summit also agreed to

establish a SAARC Documentation Centre, a voluntary programme and to promote the creation

of SAARC scholarships, fellowships and chairs.[2]

Third summit

The third summit was held in Kathmandu, Nepal on 2–4 November 1987, and was attended by

the presidens of Bangladesh, the Maldives and Sri Lanka, the prime ministers of India and

Pakistan, and the kings of Bhutan and Nepal.[3] The foreign ministers of the member states

signed the SAARC Regional Convention on Suppression of Terrorism and an agreement to

establish a South Asian Food Reserve.[3]

Fourth summit

The fourth summit was held in Islamabad, Pakistan on 29–31 December 1988 and was attended

by the presidents of Bangladesh, the Maldives and Sri Lanka, the prime ministers of India and

Pakistan, and the kings of Bhutan and Nepal.[4] The summit discussed the coup attempt on 3

November 1988, declared 1989 to be the "SAARC Year Against Drug Abuse", declared 1990 to

be the "SAARC Year of the Girl Child", set up a technical committee on education, and launched

a regional plan called "SAARC-2000-A Basic Needs Perspective" to meet specific targets by the

end of the twentieth century in areas such as food, shelter, education and environmental

protection.[4] It was also agreed to hold regular "South Asian Festivals" with the first being

hosted by India.[4]

Fifth summit

The fifth summit was held in Malé, Maldives on 21–23 November 1990 and was attended by

the presidents of Bangladesh, the Maldives and Sri Lanka, the prime ministers of India, Nepal

and Pakistan, and the king of Bhutan.[5] The leaders signed the SAARC Convention on Narcotic

Drugs and Psychotropic Substances, launched the Special SAARC Travel Document (providing

visa-exemptions for national judges, parliamentarians and academics and their immediate

families), launched a Scheme for the Promotion of Organised Tourism, authorized the SAARC

secretariat to share information and exchange reports, studies and publications with the

European Community and the Association of South East Asian Nations, declared various SAARC

years (1991-2000 AD) to be the "SAARC Decade of the Girl Child", 1991 to be the "SAARC Year

of Shelter", 1992 to be the "SAARC Year of the Environment", 1993 to be the "SAARC Year of

Disabled Persons", and decided to set up the SAARC Tuberculosis Centre in Nepal and the

SAARC Documentation Centre in India.[5]

Sixth summit

The sixth summit was held in Colombo, Sri Lanka on 21 December 1991 and was attended by

the prime ministers of Bangladesh, India, Nepal and Pakistan, the presidents of the Maldives

and Sri Lanka, and the king of Bhutan.[6]

Seventh summit

The seventh summit was held in Dhaka, on 10–11 April 1993, and was attended by the

presidents of the Maldives and Sri Lanka, the prime ministers of Bangladesh, India, Nepal and

Pakistan, and the king of Bhutan.[7]

Eighth summit

The eighth summit was held in New Delhi, on 2–4 May 1995, and was attended by the

presidents of the Maldives, Pakistan and Sri Lanka, the prime ministers of Bangladesh, India and

Nepal, and the king of Bhutan.[8]

Ninth summit

The ninth summit was held in Malé, on 12–14 May 1997, and was attended by the presidents of

the Maldives and Sri Lanka, the prime ministers of Bangladesh, India, Nepal and Pakistan, and

the king of Bhutan.[9]

Tenth summit

The tenth summit was held in Colombo, on 29–31 July 1998, and was attended by the

presidents of the Maldives and Sri Lanka and the prime ministers of Bangladesh, Bhutan, India,

Nepal and Pakistan.[10]

Eleventh summit

The eleventh summit was held in Kathmandu, on 4–6 January 2002, and was attended by the

presidents of the Maldives, Pakistan and Sri Lanka and the prime ministers of Bangladesh,

Bhutan, India and Nepal.[11]

Twelfth summit

The twelfth summit was held in Islamabad, on 4–6 January 2004, and was attended by the

presidents of the Maldives and Sri Lanka and the prime ministers of Bangladesh, Bhutan, India,

Nepal and Pakistan.[12]

Thirteenth summit

The thirteenth summit was held in Dhaka, on 12–13 November 2005, and was attended by the

prime ministers of Bangladesh, Bhutan, India and Pakistan, the presidents of the Maldives and

Sri Lanka, and the king of Nepal[13]

Fourteenth summit

The fourteenth summit of SAARC was held in New Delhi, on 3rd-4 April 2007, and was attended

by the presidents of Afghanistan, the Maldives and Sri Lanka and the prime ministers Bhutan,

India, Nepal and Pakistan and the chief adviser of the government of Bangladesh.

Fifteenth summit

The fifteenth summit of SAARC was held in Colombo, Sri Lanka on 1–3 August 2008. The issues

discussed were regional cooperation, partnership for growth for the peoples of South Asia,

connectivity, energy, the environment, water resources, poverty alleviation, the SAARC

Development Fund, transport, information and communications technology development,

science and technology, tourism, culture, the South Asian Free Trade Area, the SAARC Social

Charter, women and children, education, combating terrorism, and the admission of Australia

and Myanamar as observers.

Sixteenth summit

The sixteenth summit was held in Thimpu, Bhutan on 28–29 April 2010. Bhutan hosted the

SAARC summit for the first time. This was marked the silver jubilee celebration of SAARC that

was formed in Bangladesh in December 1985. Climate change was the central issue of the

summit with summit's theme "Towards a Green and Happy South Asia". Outcome of Thimpu

Summit regarding climate change issue:

OBJECTIVES

Objectives of SAARC include promotion of socio-economic developments within SAARC countries and also develop a productive relationship with regional and international organizations. Based on this, objectives can be categorized as under:

1) Inter-SAARC

a) To promote the welfare of the people of South-Asia and to improve their quality

b) To accelerate economic growth.

c) To promote active collaboration and mutual assistance in the economic cultural, technical and scientific fields.

d) To promote and strengthen collective self-reliance among the countries of South Asia.

e) To contribute to mutual trust, understanding and appreciation of one another’s problems.

2) Intra-SAARC

a) To strengthen cooperation among themselves in international forums and with other developing countries.

b) To strengthen cooperation with other developing countries.

c) To cooperate with international and regional organizations.

SAARC: Work Packages

Ten areas of work within SAARC region were identified and assignment were given to various SAARC countries. Topics were allocated together with the countries responsible for the same. India

was given four assignments namely, Business Information and Data Networking, Human Resource Development, Science and Technology and Social Dimension of Business Development. Pakistan had two topics i.e., Trade and Investment. Sri Lanka was given an interesting topic namely, women entrepreneurs. Bangladesh was expected to handle telecommunication. Travel and Tourism were to be handled by Nepal. Bhutan and Nepal had joint responsibility for energy. There is a need for an accelerated effort to push ahead in respect of above assignments.

SAARC: Background for South Asian Economic Union by 2010

Regional Cooperation has been a subject of great interest in several parts of the world. However, the idea of regional cooperation in South Asia was first evolved during 1977-80 and Bangladesh took the initiative to bring up the idea of setting up SAARC. In August 1983, Foreign Ministers met in New Delhi and Declaration on South Asian Regional Cooperation (SAARC) was made and formally Integrated Programme of Action (IPA) was launched.

In 1985, Charter of SAARC was adopted in Dhaka. IPA, consisting of eleven areas of cooperation, is the key component of the SAARC’s functions. These include agriculture, communications, education, culture and sports, environment and meteorology, health and population activities, prevention of drug trafficking and drug abuse, rural development, science and technology, tourism, transport and women in development.

Initial steps taken for a long-term objective of South Asian Economic Union by 2010 so far have included the following:

1. Agreement on SAPTA (South Asian Preferential Trading Arrangement) was signed during the Seventh SAARC Summit in Dhaka. This entered into force on December 7, 1995. This had the following two forward linkages:

a) Gradual reduction and eventual elimination of tariffs within SAARC.

b) A step on the road to creating a SAFTA (South Asian Free Trade Area). Accelerated efforts are needed to implement bilateral and multi-lateral initiatives to promote economic cooperation.

2. Bold initiatives have also been taken in respect of developing institutional framework. These institutions need to be strengthened for their vibrant functions so that positive steps are taken to crystallize the dream of South Asian Economic Union by 2010.

Some of the pertinent institutions include:

a) Promoting people-to-people contact.

b) SAARC Regional Institutions:

i) SAARC Agricultural Information Centre (SIAC), Dhaka, Bangladesh.

ii) SAARC Documentation Centre (SDC), New Delhi, India.

c) The following SAARC Funds have been established so far:

i) SAARC Fund for Regional Projects (SFRP) (1991).

ii) SAARC - Japan Special Fund (Sept. 27, 1993), Kathmandu, Nepal.

There is a need to consolidate gains from the above institutional framework and carry forward the same towards achieving the goal of South Asian Economic Union by 2010.

SAARC: Logistics for vision 2010

SAARC is the largest geo-economic block of the world with 1.2 billion people. Its GDP, based on purchasing power parity is $ 3.57 trillion. Its combined average growth is over 7%. Its plan includes a common market i.e. SAPTA. This represents a hope for the largest pool of poor people of the world, with a consumer base of over 425 million people in the middle class bracket. It is larger than any economic block of the world. It has the potential of contributing a great deal to the ever evolving global economy.

SAARC region has the following unique features of the world:

1. It has one of the most ancient living civilizations in the world.

2. It is a sleeping giant and has started to move its arms.

3. All religions, faiths, and ideologies of the world live together.

4. It is maturing and is poised to become an important economic force forming a common market called SAPTA and later SAFTA. This is expected to usher in a new era which will change all traditionally known economic parameters.

5. It has the largest irrigated land areas in the world with over 67 million hectares.

6. It has the second largest railway network of the world after the US.

7. It offers one of the largest English speaking area.

8. It has labour force of 423 million people. This is the largest of any other economic block in the world.

9. It also is home to some of the poorest living people on the earth but has increased job opportunities and self-employment schemes in all SAARC countries.

10. Having a combined average growth rate of more than 7% by year 2000, SAARC will have a combined population of 1.3 billion people and the total consumer base will surpass 750 million. This will be the largest number of consumers in a single economic block in the world.

SCCI: A strong logistic for South Asian Economic Union by 2010

SAARC Chamber of Commerce and Industry (SCCI) was set up in 1992 as the official recognition by all the regional governments and as the apex body of all the national federations of chambers of commerce and industry with its headquarters in Pakistan. It consists of seven component members representing each country. Its mission is to enhance economic cooperation with a view to improving SAARC’s position in the World trade as well as within SAARC itself.

SCCI’s philosophy is as under:

It will gradually endeavour to achieve SAARC Economic Union through:

1) Economic Cooperation, and2) Bring about harmonious and healthy economic relations among the business communi- ties of the region.

The general belief is that the above Union will serve as a step forward to globalization and will help to overcome the socio-political differences within the region.

SCCI’s contributions towards establishment of South Asian Economic Union by 2010 are suggested to be in the following dimensions:

1) Serve as voice of business community of the region at national, regional and global foram.

2) Endeavour to bring about necessary economic cooperation in all spheres of the SAARC region.

3) Encourage investments and joint ventures within and outside the region to ensure that the benefits of economic cooperation are realised for the region.

4) Encourage private sector in the process of industrialisation and also to act as the change agent while allowing the governments to develop the infrastructure jointly with them and setting in place policies which can minimise dislocations to economic growth and social development.

Intra-Regional Investment

The business community of SAARC need to be encouraged to come forward with intra-regional investment proposals covering the following areas:

1) Investment promotion.2) Investment protection.3) Repatriation of profits.4) Avoidance of double taxation.5) Arrangements for settlement of trade disputes among SAARC member states.

Strategy needs to be developed to evolve common agreements for the region as a whole or sub-region on bilateral basis for the above aspects. The share of SAARC in World Trade, based on the World Development Report 2002, is 1.03%. This shows that the scope of intra-regional trade is very big.

AGENDA FOR SOUTH ASIAN ECONOMIC UNION BY 2010

Year 2001 was set as target date to achieve SAFTA. This was expected to set pace of development in core trade and economic cooperation in the member countries. However, the dream has not yet been realized.

The Ninth SAARC Summit was held in Male, Maldives during May 12 - 14, 1997 and directed the establishment of Group of Eminent Persons (GEP). This group was asked to undertake the following tasks:

1. Develop a long range vision.2. Formulate a perspective plan of action including a SAARC agenda for 2000 and beyond.3. Spell out the targets that can and must be achieved by the year 2020.

The recommendations were presented in the two-day SAARC Summit held in January 5-6, 2002 in Kathmandu, Nepal. South Asian Economic Union by 2010 is expected to result as under:

1. With new enthusiasm in the markets and shifting economies on combined scale, dependence of their GNP will reduce in coming years.

2. An increased collaboration and harmonious relationship could help reduce the defence budgets to much lower points. On the assumption that these funds are allocated for developmental programmes, the growth indicators will sharply move forward.

3. Marketing plans for these countries can be more or less unique and specially for consumer products and services like entertainment.

SAARC Summit January, 2002

Two days SAARC Summit was held in Kathmandu, Nepal during January 5-6, 2002. it visualized the establishment of South Asian Economic Union. Pre-requisites to this dream were identified as under:

1. Promote mutual trust and understanding, peace, stability and amity and accelerated socio-economic cooperation.

2. Foster good neighbourly relations, relieving tensions and building confidence.

3. Finalize a regionally agreed investment framework to meet investment needs of the member states.

4. Promote South Asia has a common tourist destination by upgrading infrastructure, air linkages,

simplification and harmonization of administrative procedures and joint marketing.

5. Combat the problem of poverty with a new sense of urgency.

6. Focus on rural micro-credit programmes for women and disadvantaged, widen opportunities for gainful employment and reconstitute the independent South Asian Commission on poverty alleviation.

7. Finalize the SAARC Social Charter including:

a) Poverty eradication.

b) Population stabilization.

c) Empowerment of women.

d) Youth mobilization.

e) Human resource development.

f) Promotion of health and nutrition and projection of children.

Conclusion

It is high time that all the SAARC countries must respect each other and strive for developing peace and tranquillity in the region and give genuine tribute to the principles of SAARC and implement a plan paving the way for institutionalising South Asian Economic Union by 2010. This is needed to usher in a new era of prosperity for the teeming millions of the above region.

Selected Bibliography

A: Books

1) Chatterton, M, Herbert I, Templeman, G, Tempest, P, Business Environment and Information Technology Knowledge, (1994) London: The Chartered Institute of Management Accountants of UK.

2) Mahbub ul Haq, (1997) Human Development in South Asia, Karachi: Oxford University Press,1997.

3) Mathew, K. M. (Chief Editor), Manaorama Year Book 1998, Kerala, 33rd edition.

4) Saeed, Khawaja Amjad Saeed, (2002) Economy of Pakistan, Lahore: Institute of Business Management, 2002.

B: Publications of Accredited Bodies

1) Annual Report 1995-97, SAARC Chamber of Commerce and Industry:

Apex Trade Organization of SAARC, Dhaka, October 30, 1997.

2) The European Community and Pakistan, Islamabad: The European Commission Delegation, n.d.

3) Intergovernmental Conference 1996, Commission Report for the Reflection Group, Brussels: European Commission, Director General for Information, Communication, Culture and Audiovisual Media, May 1995.

4) Free Trade with India: Its Raison D’etre and Impact, Karachi: Research and Economic Development Cell, Chamber of Commerce and Industry, Karachi, March, 1996.

5) Information Handbook 1996-97, Dhaka: SAARC Chamber of Commerce and Industry.

6) The Magic that is South Asia, Official publication of SAARC Chamber of Commerce and Industry-Tourism Council, Bangkok: SURAPIM Co. Ltd., 1997.

7) Statistical Outline of India 1997-98, Mumbai, Department of Economics and Statistics of Tata Services Limited, December 1997.

C: Downloads from Internet

1) SAARC - SAPTA - Largest geo-economic Block - South Asia wake up.

2) Globalization, Regionalisation and Transit.

3) SAARC Chamber of Commerce and Industry.

4) Agreement on SAARC Preferential Trading Arrangement (SAPTA).

5) SAARC-The Indian Response.

6) The Fortnight that was Pak, India to jointly oppose EC’s anti-dumping duty.

7) SAARC completes its 12 years.

8) India, Pakistan keen to resume talks.

9) SAARC: Progress Report, Home, History, Charter, Progress, Potential and Profile.

10) Development of SAARC

11) Harnessing the Potential of South Asia.

12) Declarations of various SAARC Summits.

CONCLUTION

SAARC has, so far, achieved little. The stringent controls over the economies by governments of the region and their inward looking policy administered by a corrupt and inefficient bureaucracy have hampered effective regional cooperation. Most crucially, the strained relationship between India and Pakistan, the two major countries of the area, and the lack of goodwill, trust and confidence have seriously impeded the progress. Consequently, the strict control imposed on the Secretary-General is symptomatic of member states' hesitation to part with a degree of their sovereignty. The resumption of long stalled dialogue between India And Pakistan following the meeting of the leaders of the two countries during the January 2004 SAARC summit in Islamabad and the economic reform measures undertaken by all South Asian countries since 1990s should positively impact on the SAARC process. Also important are the spread of education, democratic awareness and the emergence of a growing middle class in the region with fresh ideas priorities and aspirations. It is time the civil society in the region and the media, in particular, played a proactive role to mobilise public opinion for regional cooperation and to underline the cost of non cooperation. The wellbeing of the people of the region should not be allowed to remain hostage to the outmoded ideas of security and national chivalry.

REFERENCE

http://www.saarc-smrc.org/introduction.html

http://www.saarctourism.org/saarc.pdf

http://www.saarctourism.org/

http://www.eicindia.org/eic/certificates/saarc.htm

http://www.defencejournal.com/2002/may/economic.htm

http://saarc-sdmc.nic.in/sdmc_functions.asp

http://www.southasianmedia.net/conference/Regional_Cooperation/critiquing.htm