For More Information Relating to any Topic Please contact on 9988910592.

1. 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

2. TABLE OF CONTENETS
 INTRODUCTION
 STRUCTURE
 HISTORY
 SAARC COUNTRIES
 AGREEMENT
 FUNCTIONS
 SAARC SUMITS
 OBJECTIVES
 CONCLUSION
 REFERENCE

3. 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:

4. 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 Centre
a) 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.

5. 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.

6. 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.

7. 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 all
individuals 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 scientific
fields;
! To strengthen cooperation with other developing countries;
! To strengthen cooperation among themselves in international forums on matters of common
interests; and

8. ! 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

9. 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, M
aldives, 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

10. 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

11. 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.

12. 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

13. 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

14. 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]

15. 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.

16. 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

17. 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

18. 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:

19. 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

20. 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

21. 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, and
2) 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.

22. 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.

23. 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,

24. 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

25. 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

26. 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.

27. 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