SOUTH ASIAN REGIONAL ORGANIZATIONS AND SAARC
It was just in 1977 that Bangladesh President Zia-ur-Rehman first suggested a regional organization (circuled a report on that).
Some say he pursued that for domestic economical problems.
Developed was the main goal since South-Asia is the n. 1 in poverty and exploding population in world.
ASEAN was settled in 1967
SAARC established in 1985 in Dhaka (India, Pakistan, Bhutan, Nepal, Bangladesh, Sri Lanka, Maldives).
India and Pakistan didn’t join promptly for fearing a misuse on each other benefit, therefore they included a clause prohibiting bilateral issues to be arose under SAARC, and also to develop any activity contrasting to bilateral policies.
Same operational framework as the IBSA (TECHNICAL – STANDING COMMITEES-MINISTERS-SUMMITS).
South Asia was the last region to take a regional step in world.
The expansion process of SAARC was initially marked by the Afghani and Myamar possibilities.
In the beginning Myamar was waiting its acceptance in ASEAN and didn’t want SAARC, what was institutionalized after its acceptance in ASEAN
Before the end of the Cold War, Afghanistan framed a regional unbalance favourable to India, therefore Pakistan showed resistence.
After Cold War than there was a process for Afghanistan, but Pakistan was trying also to include other central and north Asian countries as to strength its muslim links… however, in 2006 Afghanistan signed only.
1995 SAPTA (South Asian Preferential Trade Agreement) willing to become a full SAFTA (S. A. Free Trade Agreement) as early as in the first decades of the 21st century.
Problems: SAARC countries have 97% imports from outside South Asia and export 96% to outside the region
Bilateral issues like Kashmir and Farraka, locking the regional cooperation
Lack of capital
In 1995 Delhi round India offered a list of 106 items for preferencial trade, while the thers offered less than 20 each.
Besides, the items offered by other countries has no demand.
Pakistan refusal to grant India the “most favoured nation status” (this would assure India to have the same trade advantages Pakistan concede to other nations he recognize as being MFN)
India got discontent as Nepal and Maldives supported the Pakistani claim for a mechanism to help settling bilateral issues (it goes against the clause exempting bilateral issues from being raised in SAARC)
After that India has increased it’s “look east policy”
1991 India become a sectoral dialogue partner of ASEAN
1995 India become a full dialogue partnership
1997 Male Summit took decisive measures to implement SAFTA until 2001, but till now it didn’t become a reality.
Advantages: Intern trade is becoming more necessary as international aid is stoping.
Buthan suggested a S. A. Development Fund (SADF) in 1991, and it started in 1996.
The fund is divided into 3: proposing action; developing actions; and maintaining SAARC activities
They have proposed 13 already.
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