South Asian Association of Regional Cooperation' (SAARC)

Summit, 26 - 27 November 2014

Introduction
Kathmandu, the capital of Federal Democratic Republic of Nepal, hosted the 18th
summit of 'South Asian Association of Regional Cooperation' (SAARC), from 26
November to 27 November 2014.
The theme of the summit was Deeper Integration for Peace and Prosperity, and was
focused towards enhancing connectivity between the member states for easier transittransport across the region.
General Information about SAARC
South Asian Association of Regional Cooperation (SAARC) was established on 08
December 1985, with its Headquarters is in Kathmandu, Nepal.
It is an eight member conglomeration of nations from the South Asian region, with a
view to promote economic, socio-cultural development and collective self-reliance of the
member states. Also, to establish credible diplomatic relations with multilateral entities,
like EU and UNO (as an observer).
The member countries include India, Bhutan, Nepal, Bangladesh, Sri Lanka, Maldives,
Pakistan and Afghanistan. A few nations to include, USA, Australia, EU, Iran, China,
Mauritius, Japan, South Korea and Myanmar has been accorded the status of observer
nations.
Historical Perspective
The seven inner South Asian countries (India, Pakistan, Bhutan, Nepal, Bangladesh, Sri
Lanka, and Maldives) came together during the late 1970s to form a trade bloc to
enhance mutual trade in the region.
The idea of regional cooperation was initially mooted in 1977 by the President of
Bangladesh, Ziaur Rahaman during his visit to India and was further echoed by King
Birendra of Nepal.
The security situation in South Asia deteriorated after USSR invaded Afghanistan in
1979, and the need for regional cooperation was felt more strongly.
Responding to the convention of President Rahaman and King Birendra the officials
from the foreign ministries of all seven countries met for the first time in Colombo in April
1981.

Finally, the proposal put forth by Bangladesh was endorsed by the other six nations.
Though Pakistan, and even India were initially sceptical about its viability.
India felt that the newly formed smaller nations, through this union, may unite to oppose
India in various bilateral issues as India shares borders with most of them.
Pakistan on the other hand felt that India was reorganising the South Asian countries
against Pakistan and creating a regional market for its domestic products, with the aim
of assuming economic dominance in the region.
In 1983, during the International Conference of foreign ministers held at Delhi, by PM
Narasimha Rao, the declaration of SAARC was adopted and the Integrated Action
Programme was launched in the fields of Agriculture, Rural Development,
Telecommunication, Metrology, Health and Population activities.
The first SAARC summit was held at Dhaka on 7-8 December 1985. Afghanistan was
included as the eighth member in 2007.
Information on Important Conventions of SAARC
SAARC Charter was signed on 08 December 1985, establishing regional association
and Study Groups were formed to tackle problems of terrorism, drug trafficking, and
increasing womens participation. (Irony is that after 30 years we are still fighting for
the same issues).
In 1987 an agreement was signed to establish a South Asian Food Reserve.
1989 was declared Year against Drug Abuse and 1990 was declared as Year of Girl
Child.
A number of Regional Centres have been established as follows:

SAARC Agricultural Centre (SAC), Dhaka, Bangladesh

SAARC Meteorological Research Centre (SMRC), Dhaka, Bangladesh

SAARC Tuberculosis and HIV/AIDS Centre (STAC), Kathmandu, Nepal

SAARC Documentation Centre (SDC), New Delhi, India

SAARC Human Resources Development Centre (SHRDC), Islamabad, Pakistan

SAARC Coastal Zone Management Centre (SCZMC), Maldives

SAARC Information Centre (SIC), Nepal

SAARC Energy Centre (SEC), Pakistan

SAARC Disaster Management Centre (SDMC), India

SAARC Forestry Centre (SFC), Bhutan

SAARC Cultural Centre (SCC), Sri Lanka

SAARC Development Fund at Bhutan

The South Asian Free Trade Agreement (SAFTA) was signed on 6 January 2004 during
Twelfth SAARC Summit held in Islamabad, Pakistan. The Agreement entered into force
on 1 January 2006, and the Trade Liberalization Programme commenced from 1 July
2006, which includes, Customs Union, Common Market and Economic Union.
The SAARC Visa Exemption Scheme was launched in 1992 to promote people to
people contact. Currently the list includes 24 categories of entitled persons, like,
Dignitaries, Judges of higher courts, Parliamentarians, Senior Officials, Businessmen,
Journalists, and Sportsmen etc.
The Meeting of SAARC Ministers of Interior/Home took place on 19 September 2014.
Home Minister Rajnath Singh, stressed on cooperation in countering issues of terrorism,
counterfeit currency, smuggling of narcotic substances, cyber crimes, human trafficking
and illegal movement of arms.
He also proposed to establish a SAARC Centre for Good Governance by inviting
administrative officers from all member nations to discuss methods and innovative ideas
pertaining to development and good governance.
Highlights of SAARC Summit 2014
SAARC summit 2014, took place after an interval of three years, as the last summit
was held in 2011 in Maldives and the next Summit will be held in Islamabad, Pakistan
after 2 years in 2016.
The major aspects pertaining to regional cooperation which Prime Minister Narendra
Modi brought out during his 30 minutes speech are as follows:

PM Modi expressed his concern over the fact that the value of regional trade was
estimated at $ 22 billion last year and said that only 5 % of the region's global
trade took place between its eight member countries.

He further said that goods today have to travel from one Punjab in India to the
other Punjab in Pakistan through New Delhi, Mumbai, Dubai and Karachi,
making the journey 11 times longer and four times costlier.

He recommended that through better connectivity and using most direct routes
the distances would shrink between our producers and consumers.He also said
that India will support monitoring and surveillance of polio-free countries, and
provide vaccines where it might reappear.

He promised to finance infrastructure projects in the region, while also proposing

a SAARC business travel card and cross-border industrial corridors to facilitate
trade.

PM Modi also said that India will now give business visa for 3-5 years for SAARC
nations and facilitate businesses through a SAARC Business Traveller Card.

India will provide immediate medical visa for the patient and an attendant for
treatment in the country.

PM Modi said that India's National Knowledge Network through the use of
information technology has removed all barriers to quality education and India
was prepared to connect the South Asian students through online course and Elibraries.

Prime Minister also offered India's capability and expertise in disaster

management saying it will always be available to South Asia.

PM Modi also referred to India's "gift" of a satellite for the SAARC region that was
being planned to be launched on SAARC Day in 2016. The same will benefit the
countries in areas like education, telemedicine, disaster response, resource
management, weather forecasting and communication.

Existing Regional Cooperation Initiatives by India as Highlighted by PM during

his Address

Duty free access to five South Asian partners for 99.7 percent of their goods.

Assistance of nearly $8 billion in South Asia over a decade.

The deepening of infrastructure links with Bangladesh through rail, road, power
and transit.

New era of cooperation with Nepal and Bhutan on energy.

A flourishing free trade pact with Sri Lanka.

A new pact soon to meet the energy needs of Maldives.

Reaching out to Afghanistan despite the distance and difficulties.

Train service to Pakistan for better people-to-people connects.

Agreements Signed During SAARC Summit 2014

SAARC Framework Agreement for Energy Cooperation (Electricity). Aims to

enable greater cooperation in the power sector among the member countries and
is expected to improve power availability in the entire region and facilitate
integrated operation of the regional power grid.

Regulation of Passenger and Cargo Vehicular Traffic. Aims to allow vehicles

to ply in member states with both cargo and passengers subject to various terms
and conditions. The agreement will result in closer regional economic
cooperation and integration through enhanced regional connectivity by allowing
movement of goods and people in the region by road.

Regional Agreement on Railways. The railway pact aims to strengthen

transport connectivity in the region and offers greater scope of promoting social
and cultural contact and encourages tourism.

The agreements will enable low-cost efficient and environment friendly

transportation in the region and provides trade and economic links for landlocked
and semi-isolated regions.

Pakistan sought more time on the proposed agreements, citing lack of internal
preparations. The agreements were expected to be taken up by heads of state
and government but only the energy cooperation got the nod.

Bilateral Agreements between India and Nepal

MoU on Motor Vehicle Agreement. This agreement would facilitate seamless

and hassle-free movement of people of both countries, further enhancing people
to people contact and also promoting tourism. It was inaugurated by flagging off
of Kathmandu-Delhi bus service Pashupatinath Express.

MOU on National Police Academy, Panauti. At present, GoI provides training

to around 350 Nepal Police officials every year in India. The Academy will cater
to training of 410 Nepalese police officers annually and GoI will fund the cost of
about INR 550 crores towards construction of the Academy.

Line of Credit of USD 1 billion to Government of Nepal from EXIM Bank will be
utilized for hydropower, irrigation and infrastructural development projects.

MoU on Cooperation in Traditional Systems of Medicine. It envisages mutual

recognition of officially recognized traditional systems of medicine, educational
qualifications, provision of scholarships and recognition of traditional preparations
on reciprocal basis.

MoU on Tourism. Aims at promoting cooperation and direct communication

between the stakeholders of tourism and hospitality industry, exchanging
information and data and exchanging experience in the areas of promotion,
marketing, etc

MoU on Sister City Arrangements.Janakpur-Ayodhya, Lumbini-Bodh Gaya and

Kathmandu-Varanasi are proposed to be linked as sister cities owing to their
deep cultural and historical linkages.

MoU on Cooperation on Youth Affairs. Aims to facilitate youth exchanges

between India and Nepal, such as young politicians, entrepreneurs, doctors,
journalists, teachers, and sportspersons and organisation of youth festivals.

Project Development Agreements. A 900 MW Hydel project will be developed

under this Agreement.

MoU for Establishment of Nepal Bharat Maitri Emergency and Trauma

Centre in Kathmandu in 2003.The eight floor structure with 200 bed facility was
built at an estimated cost of Rs 100 crores. The Centre was jointly inaugurated
during the PMs visit.

Supply of one Dhruv Advanced Light Helicopter (ALH) Mark III to the Nepal
Army. PM handed over an indigenously built ALH by Hindustan Aeronautics
Limited (HAL) to Nepal Army to honour Nepals long outstanding request.

Conclusion
China, which holds an observer status in the group, was seen actively promoting a more
active role for itself in the region including infrastructure funding through its proposed
'Asian Infrastructure Investment Bank' (AIIB) and extending its ambitious Maritime Silk
Road project to South Asian nations.
Pakistan and Nepal were open to accepting a more participatory role for the observer
nations in the summit process, indirectly advocating for a more Chinese involvement.
However, the proposal was not accepted because of India's reservation.
Considering the infrastructure diplomacy that China has been expeditiously indulging in
with all our neighbouring countries, it is only a matter of time that it will be accepted into
the folds of SAARC and India will get marginalised in its influence in the region.

Therefore, India needs to enhance connectivity, improve people to people contact and
promote trade and cultural exchanges to continue to retain the position of relevance in
the South Asian Region.