SAARC @40: An Idea That Refuses To Die

SAARC has remained dormant since 2014. However, the logic of regional cooperation, such as trade and connectivity, security, youth, climate, etc remains compelling

About SAARC

• Established: The South Asian Association for Regional Cooperation (SAARC) was established on December 8, 1985.
• Regional Organisation: SAARC is an economic and political regional organisation of South Asian countries, aiming to promote peace, cooperation, and shared prosperity.
  • The South Asian region is home to 40% of the world’s democracies, and each country possesses unique strengths, such as Sri Lanka’s leading social indicators, Bhutan’s concept of Gross National Happiness, India’s status as the world’s largest democracy, and the Maldives’ climate resilience.
• Secretariat: The Association’s Secretariat was established in Kathmandu, Nepal, in January 1987.
• Members: SAARC has eight member countries — Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka.

Significance of SAARC in Current Times

• Transnational Issues: SAARC cannot be discarded because significant challenges — pollution, Himalayan water scarcity, terrorism and cybercrime — are inherently transnational.
• Responding to Demographic Pressures: Nearly 100,000 people enter the South Asian labour force daily. 
  • UNICEF warns that over half of South Asia’s youth will lack skills by 2030, posing a severe risk if jobs are not created.
  • There is an urgent need for coordinated regional efforts in education, skill development, and employment generation.

Challenges of SAARC

• Lack of Political Trust: The fundamental issue is a lack of political trust among South Asian countries, leading to a Security Dilemma in which nations continually build up their arsenals, fearing that their neighbours will do the same. 
• Overlooked Potential: South Asia is the least integrated region globally.
  • Intra-regional trade accounts for only 5% of total trade, significantly lower than ASEAN (25%) or Europe (60%).
  • High tariffs, rigid borders, and bureaucratic obstacles hinder integration.

SAFTA and Economic Potential

• Establishment: The South Asian Free Trade Agreement (SAFTA) was launched in 2006 to facilitate trade with zero customs duties and seamless borders.
• Potential: If SAFTA were implemented effectively today, it would create robust supply chains (e.g., component manufacturing in one country, assembly in another), 
  • reduce logistics costs, and attract investment, 
  • reduce poverty, potentially lifting 736 million people living near the poverty line. 

India’s Approach

• Shift in Strategic Focus: India has adopted the “SAARC minus 1” strategy, prioritising regional groups such as BIMSTEC and BBIN (Bangladesh, Bhutan, India, Nepal) when Pakistan blocks SAARC agreements.
• Guiding Foreign Policy Principles: India’s neighbourhood policy is guided by the principle of Vasudhaiva Kutumbakam (“The World is One Family”).
  • It also reflects the Gujral Doctrine, which promotes non-reciprocal assistance to smaller neighbours.
• Space Diplomacy: India launched a free satellite in 2017 for neighbouring countries as part of Space Diplomacy.
• First Responder Role: India has consistently acted as a First Responder. 
  • Example: Vaccine supply during COVID-19, Humanitarian assistance during Sri Lankan floods under Operation Sagar Bandhu
  • These initiatives help build trust, although they cannot replace formal diplomatic mechanisms.
• Civilizational Heritage as a Bridge: Shared heritage across Hinduism, Buddhism and Sufism offers non-political avenues for connection. 
  • India utilises this through initiatives like the Buddhist Circuit and the revival of Nalanda University.

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Way Forward

• Youth and Mobility: There is a need to revive the SAARC Youth Charter to address the region’s shared demographic challenges and create pathways for skill development and employment.
  • The visa regimes should be liberalised along the lines of Europe’s Schengen system to promote smoother academic exchanges, student mobility, and cross-border educational collaboration.
• Digital Cooperation: India can leverage Digital Public Goods — including UPI (Unified Payments Interface) and the Aadhaar ecosystem — as instruments of Digital Diplomacy to strengthen regional digital connectivity and service delivery.
• Reorienting the Organisation: SAARC should be transformed from a political summit into a Development Organisation with a focused agenda on: Health, Climate change, Collaborative regional progress, etc.