The achievements of SAARC / problems are faced by SAARC
Achievements of SAARC
Although SAARC has remained besieged with serious political problems since its inceptions yet it could register some achievements that are as under:
(i) Removal of Trade Restrictions: The member countries have undertaken some steps in the direction of reducing quantitative restrictions on imports from one another and grained some measure of concessions on trade. From August, 1998, India removed quantitative restrictions off about 2300 items of import from member countries.
Upto August, 2003, India had permitted concessions to Pakistan on about 370 items. Pakistan, by that time, had allowed concessions on import of about 340 items to India. The free trade agreements have been negotiated by India with Bhutan, Nepal and Sri Lanka.
(ii) Institution of Technical Committees: In order to promote co operation among the member countries in the fields of agriculture, rural development, environment, health, communications, science and technology, transport, tourism, education and culture, the technical committees for economic co-operation have been instituted.
(iii) Poverty-Alleviation Programme: SAARC has adopted the strategy of social mobilization, decentralized agricultural development, small labour intensive industries and human development. The priority has been given to the right to work and extension of primary education for the poor. SAARC has created a three-tier mechanism for exchange of information among member countries on poverty alleviation programme. In this connection, it has received co-operation from IBRD. UNDP and ESCAP.
(iv) SAARC Funds: In order to render financial assistance to the member countries, SAARC has instituted two funds-South Asian Development Fund (SADF) and SAARC Japan Special Fund (SJSF). The SADF has three windows-window for identification of development project. window for institutional and human resource development and window for social and infrastructural development.
(v) SAARC Food Security: The SAARC has set up the SAARC Food Security Board for making a periodic review of the food situation in the region. A reserve of 2.42 lakh tonnes of food grains has been created to tide over any emergency in the member states. SAARC expressed its intention to set up regional food bank to meet shortages and losses caused by natural calamities such as floods and droughts at the 14th SAARC summit held in New Delhi in April, 2007.
(vi) SAARC Chamber of Commerce and Industry: A SAARC Chamber of Commerce and Industry (SCCI) have been instituted with its headquarters in Karachi. It has the aim to promote trade and interaction of chambers of commerce and industry of seven member countries, to organize trade fairs and to negotiate with other trade organizations for the expansion of intra-regional trade. The SCCI has played an important role in the formation of SAPTA and promoting economic and trade co operation in the region.
(vii) SAARC Agricultural Information Centre (SAIC): It was established in 1998 and acts as a central information institution on agriculture-related activities like forestry, fishery, rice, potato, livestock etc.
It assists in the exchange of information among the seven member countries also about R&D activities. The information about research and experiments related to agriculture is published by SAIC and distributed among the member nations.
(viii) Agreements with International Organizations: For facilitating the social and economic development of SAARC countries, the memorandum of understanding have been signed with various international organizations including UNCTAD, UNDP, UNDCP, ESCAP, ITU and Asia Pacific Tele community (APT) etc,
(ix) Formation of South Asian Growth Quadrangle (SAGQ): In early. 2000, India, Bhutan, Nepal and Bangladesh formed the South Asian Growth Quadrangle with the aim of the development of Nepal, Bhutan, Bangladesh and Eastern India and the basin of the rivers Ganga. Meghna and Brahmaputra. The countries of this area will cooperate in the fields of multi-nodal transport and telecommunications, effective use of tourism, protection from environmental hazards and increase in trade and investments.
(x) Bilateral Free Trade Agreements: In order to move towards the creation of South Asian Free Trade Area (SAFTA), some of the countries of the region have forged the bilateral free trade area agreements. A major development in this regard has been the signing of the agreement between India and Sri Lanka on December 28, 1998. Under this agreement, India shall permit the import of 1000 items on zero duty from Sri Lanka and the latter shall permit the duty free import of 900 items. Similar agreements have also been forged by India also with Bhutan and Nepal.
Problems Faced by SAARC
Although SAARC has attempted to move forward over the years, yet it has been faced with very serious problems and so far it has not been able to play its assigned role.
These problems are as under
(1) Political, Ethnic and Religions Disputes: The major barrier to the co-operation among the member countries of SAARC has been long-drawn political, ethnic and religious disputes among the member countries, Pakistan has been insisting over the years that co-operation in trade and other matters of social and economic development, cannot be possible unless India hands over its state of Jammu & Kashmir to it.
In contrast, 43 percent of ASEAN investment and 64 percent of EU investment is intra-regional. The increase in intra-regional investment by the investors of the member countries will certainly enhance greater co operation among member countries of SAARC in the diverse areas.
(ix) Bilateral Preferential Arrangements: Some member countries of SAARC have entered into bilateral agreements with one another for extending trade concessions. In some cases, these concessions are even more than those assured under SAPTA. Consequently, there is no added attraction for member countries to await indefinitely the outcome of SAPTA.
(x) Product by Product Approach: The lack of progress in SAARC negotiations so far has been on account of the product by product approach of the member countries in the matter of granting trade concessions. Some of the products included in the lists for trade concessions are actually not traded among the member countries.
The move towards the creation of South Asian Free Trade Area (SAFTA) can make headway only if the countries adopt a more wide sector based rather than product-based approach in the extension of trade concessions.
(xi) Transport Problems: Even though there is technical committee on transport, created by the member countries, yet the transport facilities are still less developed. The transit duties are also quite high. It is a major impediment in the creation of SAFTA.
(xii) Trade Barriers: Despite the protracted trade negotiations among the member countries, there are still high tariffs on several commodities. Pakistan and Bangladesh impose VAT on all imported goods. All the member countries continue to levy non-tariff barriers such as quantitative restrictions, restrictive licenses etc.
Pakistan has not yet granted Most Favoured Nation (MFN) status to India, despite the fact that it was obligatory to do so under the WTO Agreement by the year 2005. Unless the countries become willing to dismantle the trade barriers, the avowed goal of creating SAFTA will remain a mirage.
