SAARC
SAARC is an intergovernmental organization founded in 1985 for the development of economic and regional integration. Its member states are Afghanistan, Bangladesh, Bhutan, India, the Maldives, Nepal, Pakistan, and Sri Lanka.
Reasons for stalemate in SAARC/ Failure and Challenges of SAARC
- India-Pakistan conflict: It has undermined SAARC, leading to stalled meetings. The last SAARC Summit was held in 2014.
- Roadblock Pakistan: Pakistan has often vetoed the major initiatives proposed at SAARC.
- Terror as an instrument of foreign policy: For India, Pakistan’s use of terror as an instrument of foreign policy has made normal business impossible.
- Durand line: Dispute between Pakistan and Afghanistan over the Durand line is also a reason.
- Alleged ‘Big brother’ Attitude of India: By countries like Nepal. The problem is majorly due to an asymmetrical power structure with a rising India, a struggling Pakistan, and a stressed Sri Lanka.
- No Dispute resolution mechanism: SAARC does not have any arrangement for resolving disputes or mediating conflicts.
- Resource crunch: SAARC faces a shortage of resources, and countries have been reluctant to increase their contributions.
- Poor Interstate trade: Interstate trade is less than 5% of total trade, despite the fact that SAARC countries have good geographical proximity and have a South Asia Free Trade Agreement between member countries.
- Chinese Engagements: China has in the past decade strengthened its relations with Bangladesh and Sri Lanka. This has led to a trust deficit in the grouping.
Is it still relevant?
- Yes
- Regional Integration: SAARC is always relevant as relations between India, Nepal, and Bhutan are extremely integrated, and only SAARC acts as an institutional mechanism.
- Platform of Subcontinent: It is the only platform where all nations of the Indian subcontinent are represented.
- Multilateral: It is also the only forum where India can resolve its issues with its neighbors multilaterally.
- Formal Mechanisms: SAARC has many formal mechanisms in various sectors, from disaster management to free trade agreements.
- No
- Bilateral Stalemate: SAARC is dictated by the relations between India and Pakistan, without which the group is irrelevant.
- Non-Implementation: The SAFTA has never been implemented, showing that its agreements are not honored.
- Bilateralism: Most nations in SAARC now engage with each other bilaterally, and the need for the platform for engagement is gone.
- Rise of other groups: BIMSTEC and BBIN pose challenges to the relevancy of SAARC.
- Trust Deficit: Unresolved border issues, trade issues, and Chinese expansionism have caused the group to develop a trust deficit.
Need for revival in SAARC
- India’s Neighbourhood first policy: Primacy to the country’s immediate neighbors is important in these troubled times for better coordination.
- Geostrategic significance: Can help counter China’s OBOR initiative, with an important role in regional support to India on various issues.
- Shared History and Culture: India has deep-rooted historical, religious, and cultural connections with almost all the SAARC countries.
- Voice to mutual Interests: All countries face issues like terrorism, energy shortage, hydro-politics, and climate change, allowing them to voice mutual interests.
- Regional Peace and Security: Since SAARC comprises India’s neighboring countries, stability in the SAARC region will bring peace home.
- Well Institutionalized: Example: South Asia University, SAARC Development Fund (SDF), SAARC Arbitration Council (SARCO).
For India
- Market Access: Being the biggest economy in the group, India can gain immensely with consolidated trade and deeper access into the member markets.
- Soft Power: The area falls within India’s sphere of influence, thus the platform has the potential to reflect India’s interests.
- Energy: A consolidated grid connecting solar, wind, and hydropower can benefit India’s energy security.
- High Trade Potential: India and Pakistan have a trade potential of $40 billion compared to the current $3.5 billion.
- Social Sector: The region has high levels of poverty and underdevelopment; SAARC can be effective in addressing common issues.
- Bilateral Issues: The forum can help resolve various border disputes and other political issues between India and neighboring nations.
The future of SAARC depends upon the willpower of the member nations, especially India, which is the largest economy in the group. The grouping can ensure much better regional integration and serve as a powerful platform to resolve bilateral issues among members.