Muhammad Yunus, the head of Bangladesh’s interim government has called for reviving the the “spirit of SAARC,” underlining that the bloc can solve many of the region’s problems.

SAARC is No Longer Functioning Properly

• Exists Only on Paper: He said that although the SAARC was formed with a great cause, it now exists only on paper and is not functioning.
• Meet of SAARC Nations Heads: Mr. Yunus mentioned that he would try to get the heads of state of SAARC nations together meet Prime Minister Narendra Modi on the sidelines of the upcoming UN General Assembly session.

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About South Asian Association for Regional Cooperation (SAARC)

• Establishment: The SAARC was established with the signing of the SAARC Charter in Dhaka in December 1985. 
• Members: Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka. 
• Observers: Australia, China, European Union, Iran, Japan, South Korea, Mauritius, Myanmar, and United States of America.
• Authority: The Meetings of the Heads of State or Government of Member States is the highest decision making authority under SAARC. 
• Hosts: Summits are usually held biennially hosted by a Member State in alphabetical order. 
  • The Member State hosting the Summit assumes the Chair of the Association.

The Failures of SAARC

• Postponed Summits: Over 30 years, SAARC summits have been postponed more than 10 times, often for political reasons.
  • For instance, the 2016 SAARC Summit, scheduled in Islamabad, was canceled after India, Bangladesh, Bhutan, and Afghanistan refused to participate after the Uri terrorist attack in Jammu and Kashmir.
  • Nepal has been making efforts to activate the regional grouping, which has not been very effective since 2016.
• Lack of Trust: The distrust between India and Pakistan has significantly hampered SAARC’s progress, with Pakistan often stalling key initiatives.
  • Examples include the blocking of the SAARC Motor Vehicles Agreement (MVA) and the SAARC satellite project proposed by India.
• Lack of Political Will: There has been a consistent lack of political will among member states to transform SAARC into a dynamic regional grouping.
  • South Asia remains one of the most underdeveloped regions, with significant socioeconomic challenges like poverty, unemployment, and inequality. 
• Weak Economic Integration: According to the Brookings Institution, Owing to protectionist policies, high logistics cost, lack of political will and a broader trust deficit, intra-regional trade in South Asia remains well below its potential at 5% of the region’s global trade. 
  • Initiatives like the South Asia Free Trade Agreement (SAFTA), though implemented in 2006, have seen minimal success in fostering trade and investment in the region.
• Security Challenges: SAARC has struggled with security cooperation due to differing threat perceptions among member states.
  • India’s concerns over cross-border terrorism from Pakistan remain unresolved, stalling progress in regional security initiatives.
• Perception of India’s Dominance: Smaller member states view India as a dominant “Big Brother” due to its larger geography, economy, and military strength. 
  • This creates apprehension about India’s intentions in the region and hinders cooperation.
• Rise of BIMSTEC as an Alternative: In recent years, BIMSTEC (Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation) has emerged due to its more cordial member relations and shared objectives.
  • BIMSTEC links South and Southeast Asian countries, providing an alternative to the stagnating SAARC.

Need to Revive SAARC Grouping

• Addressing Regional Challenges: South Asia faces common challenges like poverty, climate change, terrorism, and energy crises, which transcend borders. SAARC can provide a platform for addressing these collectively.
• Global Relevance: With global power blocs like ASEAN and the EU gaining prominence, South Asia risks marginalization. 
  • Reviving SAARC can strengthen the region’s global positioning.
• Boosting Intra-Regional Trade: Intra-regional trade in South Asia remains low at 5%. Reviving SAARC could enhance economic ties through full implementation of SAFTA, fostering regional interdependence and easing political tensions.
  • Regional projects, including energy pipelines and cross-border roads, can accelerate growth. 
• Climate Change: SAARC can provide a cooperative framework for disaster management, technological sharing, and climate resilience strategies.
• Security Cooperation: SAARC has the potential to serve as a platform for intelligence-sharing and joint action against issues like terrorism and cross-border criminal activities. 
• Conflict Resolution: SAARC can act as a confidence-building measure, keeping dialogue open through economic and cultural exchanges, even amid political tensions.
• Cultural and Educational Exchange: Reviving SAARC can promote tourism, cultural exchanges, and academic collaborations, fostering mutual understanding and trust among member nations.
• Migration and Labor Rights: SAARC can ensure better protection for migrant workers by creating frameworks for labor laws and safe migration within the region, benefiting millions of workers.
  • For instance, Bangladesh seek help from India to convince Myanmar to take back its population of the Rohingya. 

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Significance of SAARC Grouping for India

• Soft Power Influence: SAARC is the multilateral platform where India is the dominant player, allowing it to exert soft power across South Asia.
  • For example, South Asian University (SAU) serves as a key example of India’s soft power, attracting students from countries like Bangladesh, Nepal, Sri Lanka, and Bhutan. 
• Neighborhood First Policy: SAARC aligns with India’s focus on strengthening ties with its immediate neighbors, enhancing regional cooperation and development.
• Geostrategic Counter to China: India can counter China’s Belt and Road Initiative Project by fostering economic cooperation and development through SAARC, engaging its neighbors in mutual growth efforts.
• Regional Stability: SAARC can help build mutual trust, especially between India and Pakistan, ensuring that regional interests take precedence over bilateral disputes.
• Global Leadership Role: Through SAARC, India can showcase its leadership in South Asia by assuming additional responsibilities, strengthening its global image.
• Boost to Act East Policy: By linking South Asian economies with Southeast Asia, SAARC can further India’s Act East Policy, promoting economic integration and growth, particularly benefiting India’s underdeveloped eastern regions.
• Potential for Exports: Economic integration within SAARC can open up larger markets for Indian companies, boosting revenues and expanding export opportunities.

Way Forward for Reviving SAARC Grouping

• Need for Consensus: For SAARC to be effective, member countries must agree on necessary reforms. 
  • However, differences, particularly between India and Pakistan, make achieving consensus challenging.
• Learning from the European Union (EU): While the EU has achieved significant progress through cooperation, SAARC is yet to reach similar levels of success in regional integration.
• Alternative Development Models: In the face of increasing Chinese investments, SAARC can serve as a platform for advocating sustainable development alternatives, opposing trade tariffs, and negotiating better terms for South Asian labor globally.
• Cultural Affinity: SAARC represents the shared cultural, linguistic, religious, and historical identity of South Asia, emphasizing the region’s natural geographic and social connections.
• Maintaining Regional Peace: Member countries should explore SAARC’s potential to maintain peace and stability in South Asia by addressing shared security challenges and fostering cooperation.
• People-to-People Contact: SAARC should promote greater people-to-people interaction in a region that comprises a quarter of the world’s population.

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Conclusion

Reviving SAARC is crucial for addressing regional challenges, enhancing cooperation, promoting stability, and strengthening South Asia’s global presence through collective economic and strategic initiatives.

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