SAARC

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SAARC

• Topic

SAARC (South Asian Association of Regional
Cooperation) - Past, Present and Future Prospects
Kanwal Batool Naqvi
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SAARC
1 HISTORY 1977-85 Bangladesh
Contribution 1985 Charter-December 08,
1985 2012 Economic Union Dream? 2015 Single
Currency?
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SAARC
2 PRINCIPLES Focus Cooperation in
SAARC - Bilateral - Multilateral 1. Sovere
ign equality 2. Territorial integrity 3. Politic
al independence 4. Non-interference in internal
affairs af other states and mutual benefits
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SAARC

• 3 OBJECTIVES
• Inter-SAARC
• Welfare to people (quality of life)
• Economic growth
• Collaboration
• - Economic
• - Social
• - Culture
• - Scientific
• Collective self reliance
• Mutual trust, under-standing and appreciation
• Intra-SAARC
• 1. Inter-cooperation in national forums
• 2. Domestic countries strengthening
• 3. International and regional organizations

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SAARC

• 4 SAARC-Current Members
• Afghanistan (Number 13, 2005)
• Bangladesh
• Bhutan
• India
• Maldives
• Nepal
• Pakistan
• Sri Lanka
• Share of Population in the World 23.19
• Based on World Development Report 2012.

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SAARC
6 SAARC-Summits
S. No. Location Date of Summit
1st Dhaka 7-8, December, 1985
2nd Bangalore 16-17 November, 1986
3rd Kathmandu 2-4 November, 1987
4th Islamabad 29-31 December, 1988
5th Male 21-23 November, 1990
6th Colombo 21st December, 1991
7th Dhaka 10-11 April, 1993
8th New Delhi 2-4 May, 1995
9th Male 12-14 May, 1997
10th Colombo 29-31 July, 1998
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SAARC
6 SAARC-Summits
S. No. Location Date of Summit
11th Kathmandu 4-6 January, 2002
12th Islamabad 2-6 January, 2004
13th Dhaka 12-13 November, 2005
14th New Delhi 3-4 April, 2007
15th Colombo 1-3 August 2008
16th Thimphu 28-29 April, 2010
17 Male November 10-11, 2011
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SAARC
WORK PACKAGES 1. India 1. Business
information data networking 2. HRM 3. S
T 4. Social dimension in business
development 2. Pakistan 1. Trade 2.
Investment 3. Sri Lanka Women
Entrepreneurship 4. Bangladesh
Telecommunication 5. Nepal
Travel Tourism Maldives-tourism 6. Bhut
an Nepal Energy 10
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SAARC
8 INITIATIVES - SAPTA - SAFTA - SAARC
University INSTITUTIONS 1. People to people
contact 2. Regional - Agricultural
infrastructure Bangladesh 3. Funds -
Regional Projects - Japan Special Funds -
South Asia Development Fund - Other Funds 4.
SAARC Chamber of Commerce Industry
Islamabad-1992
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SAARC

• 10 UNIQUE FEATURES
• The oldest ancient living civilizations
• Worlds sleeping giant-started moving
• People of all regilons, faiths, ideologies live
• Economic force-common market
• The largest irrigated area
• The second largest railway network
• The largest English speaking area
• The largest labour force 425m people
• Home of the poorest
• - Job openings
• - Self employment
• 10. 750m commerce-the largest single block

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SAARC

• 12 CHALLENGES
• Poverty
• Unemployment
• Literacy
• Governance
• Education
• Development
• Enabling environment
• Defense expenditure

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ECONOMIC CHALLENGES AND OPPORTUNITIES IN SAARC
REGION
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• ECONOMIC CHALLENGES FOR
  PAKISTAN
• The Pakistans economy is currently passing
  through the most difficult phase of its economic
  history.
• Once a robust economy, with economic growth
  over 6 of GDP, now it has been transformed into
  a fragile economy, due to serious economic
  challenges, the most important being our
  countrys frontline role in War on Terror and
  the persistent Power and Energy Crisis which
  has crippled our industrial sector.
•  
•  

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• Before I proceed further, lets see what the
  IMF Mission, which recently visited Pakistan in
  October 2012, says in its Report
• The Pakistans economic situation is
  deteriorating and Islamabad urgently needs to
  address deep problems in its energy sector while
  boosting growth to meet a rapidly growing
  population.
•  

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The IMF Mission further goes on to say that
The countrys GDP in 2012-13 is likely to grow
at the annual rate of 3 to 3.5, not enough to
provide jobs to the growing labor force. Decisive
and far-sighted action is needed to address this
challenging outlook.
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The IMF Mission Report points out that
ENERGY PROBLEM is the largest single impediment
to higher economic growth for Pakistan and a
major factor behind macroeconomic imbalances. For
this, it has outlined a comprehensive approach to
reform to tackle these problems. The above
observations of IMF are no doubt a Reality.
For more than three consecutive years, our
country has been experiencing low growth, which
has almost stagnated the per capita income level.
This has aggravated poverty and worsened
unemployment rates
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• The Challenges that our Country faces today do
  not commensurate with the abundant and vast
  potential that it possesses.
• Pakistan offers huge potential and opportunities
  for trade and investment to both foreign
  investors and the local economy.
• Pakistan is ranked number one in the World Banks
  Ease of Doing Business Index. in Asia

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• Pakistan is worlds 2nd largest producer of
  water,
• buffalo meat and milk
• Pakistan is worlds 3rd largest producer of
  cotton
• Pakistan is the 4th largest goat meat supplier
• Pakistan has 5th largest Coal and Gold reserves
• Pakistan is the 7th largest wheat grower

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• Prospects and Economic Revival Efforts
• The economic growth of Pakistan stood at 3.7
  in FY 2012 which is higher than 3 realized in
  previous year, but less than the target of 4.2
  percent. The State Bank of Pakistan in its third
  quarterly Report State of the Economy says that
  this performance is notable, given the following
  challenges
• Considerable damage to cotton crop due to
  floods
• Ongoing energy shortages
• Rise in international oil prices and
• Security concerns.

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• The State Bank comments on the economy
  recovery prospects as follows
• Although Pakistans economy has shown some
  recovery in terms of GDP growth, the key macro
  indicators still remain weak. Persistent
  inflation and pressure on the fiscal and current
  accounts, remain the key challenges for the
  economy
• Like IMF, the State Bank of Pakistan also
  pinpoints that Low investment and energy
  shortages have direct growth implications. Other
  areas that poses challenge and major risk to the
  macro-economy is the persistently high fiscal
  deficit

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Pakistan must overcome its economic challenges as
it has vital role to play to bring economic
prosperity in SAARC Region SAARC region has
potential of becoming a vibrant region in the
world given its enormous resources in manpower,
technology, agricultural and mineral assets, its
history and civilization.   Pakistan must take
immediate measures to meet its present economic
challenges as it has a more vibrant role to play
for the regional cooperation in the SAARC region.
  Pakistan could play an important role in
bringing the people of SAARC together by
promoting investment, trade and people to people
contacts.
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The Existing Potential in the South Asian
Region South Asia is the second fastest growing
region in the world and it has the potential to
be an economic power by the year 2025. Many in
South Asia, however, still face extreme poverty,
especially the SAARC countries. South Asia is
home to half of the worlds poor, with 40 of its
population living on less than 1.25 a day.
South Asia accounts for only 2.5 of GDP 2 of
world exports, and 1.6 of world Foreign Direct
Investment .
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SAARC countries have common economic goals and
economic challenges Significant challenges and
barriers still exist which continue to restrict
the economic growth and integration in the SAARC
region. What is required is a firm commitment
by the SAARC countries to move towards prosperity
by placing stronger emphasis on economic
development through REGIONAL PARTNERSHIPS as they
share common economic goals and challenges.
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Private Sector in SAARC countries have to play a
Pro-active Role The private sectors of SAARC
countries are already involved in promoting
economic cooperation in the region but they must
be pro-active to put a firm pressure on their
respective governments to provide a business
enabling environment to foster the pace of
economic development and cooperation within the
region. The Private sector must play a dynamic
role to bring about revolutionary changes and
foster the pace of regional integration in SAARC
region.
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Key Challenges for SAARC Region While SAARC
countries continue to make efforts for economic
development and intra-regional integration, their
progress is curtailed by a continuing sub-set of
systemic issues and challenges common to all
member nations. I would like to outline few of
the key challenges and issues that are creating
barriers in the way of increasing flow of trade
and investment among the SAARC Countries
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• Political Mindsets and Issues
• Abject Poverty
• Low Intra-regional trade
• Low- Intra-regional or cross-border Investment
• Poor Transport Network or Infrastructure to
  facilitate trade
• Sizable Sensitive List, Para Tariff and
  Non-Tariff Barriers
• Food Security issues
• Climatic Change Issues (floods and natural
  disasters)
• Under-utilization of renewable energy resources
• Stringent visa requirements

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The above challenges need to be dealt on
preferential basis by the SAARC countries,
especially the two big nations PAKISTAN and
INDIA.
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More IntraSAARC Trade can lead to Better
economic conditions for People Intra-regional
trade is one of the important measures to
alleviate and improve the economic condition of
the people of this region. However, as also
indicated in the list of barriers the Intra
regional trade among the SAARC member states is
marred by the issues of non-tariff barriers and
sensitive list. The SAARC states must, therefore,
address this issue immediately and effectively
for rapid expansion of intra regional trade.
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More Intra-SAARC Investment can lead to less
dependence on Western Investors The investment
regime in SAARC is not only restrictive but lacks
policy harmonization. Supporting mechanisms are
needed to support capital flow and help attract
more Foreign Direct Investment (FDI) within SAARC
countries and depend less on investment from
outside the region. The FDI sources are highly
diversified in SAARC countries, mostly still
originating in developed countries, outside the
region. India, Bangladesh and Pakistan attract
most of their FDI inflows from countries outside
the region.
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There is strong case for deeper intra-regional
investment. Expanding intra-regional investment
is the key to bolstering the investment regime in
SAARC region. I would suggest that Boards of
Investments in the SAARC countries should promote
more intra-regional investment by establishing
their offices in each others country. .
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I would like to highlight two other issues, which
are not directly concerned with economy, trade or
investment, but these issues or challenges have
direct bearing on all of them. These challenges
are Food Security Issues and Natural Disaster
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Food Security Issues Considering that the
estimated population of South Asia will rise by
25 to 2000 million in 2025, food security is the
most tangible threat to all SAARC
countries. This threat cannot be mitigated by a
variable increase in food production alone, but
by efforts to drastically improve access to food
sources and clean drinking water.
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Natural Disasters SAARC countries are at
greatest risk of natural disasters like
earthquakes, floods and cyclones, which are
already having major impacts on their economic
performance. These have resulted in lower
agricultural productivity in the entire region.
If this continues, it can turn out in shape of
severe economic shocks for the SAARC Countries.
To address the above two issues, the SAARC
countries must take action on immediate basis.
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Key Opportunities for SAARC Region

There is always a blessing in disguise.
Though the SAARC region is facing a host of
challenges but there are Opportunities as well.
We need to identify and explore them. Few areas
are highlighted here, which have so far not been
explored.
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• (1) Cooperation in Services
• Telecommunication
• Banking
• Energy
• Transport
• Software services

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(2) Sharing Renewable Energy SAARC Region has
enormous potential in Energy, especially
HYDRO-POWER, but only 10 of this potential is
currently being utilized. Renewable energy
options such as SOLAR and WIND-POWER need to be
seriously considered as these are vital for the
economic growth and sustainability of SAARC.
India has around 25000MW of wind power, which
can be exported to other SAARC countries. The
Renewable Energy sources in SAARC countries need
to be tapped through infrastructure development,
integrated investment promotion policy and
government pledges.
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(3) Greater involvement of Private
Sectors of SAARC The SAARC Governments must
consider an increased role for their private
sectors in establishing public-private
partnerships, where possible, in SAARC countries.
The Private sector needs to be more involved in
guiding Government policies through lobbying and
advocacy efforts. The private sector is
effective in bringing in a commercial orientation
and operating in a non-political way. They also
have strong implementation capacities to
strengthen economic and business opportunities
along with trade in the region.
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(4) Promising Youth leadership The young
business leaders of SAARC region should be
brought together to prepare them as the next
generation of business leaders for South Asia and
to identify their role in the formation of an
integrated future business community. There is
strong need for youth empowerment and focus on
business leadership for South Asian economic
development.
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(5) Investment in Health and Education SAARC
countries have received bulk of FDI in sectors
like Telecommunication, Transportation,
Exploration of mineral and natural resources,
while other core sectors like health and
education are given least importance.
Investment in health and education sectors in
form of FDI or Joint Ventures between public and
private enterprises is squarely productive, which
will not only enhance Human Development Index of
the region but also help achieve sustainable
economic growth.
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Concluding Remarks  SAARC was established in
1985 and the primary objective identified in its
Charter says   To promote the welfare of the
peoples of South Asia and to improve their
quality of life"   The question is has SAARC
achieved this objective?  
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Way Forward  I think that the two bigger
countries Pakistan and India should have to
play their due role to move SAARC towards the
objective as given in its Charter.   I also
think that the Role of private sector is quite
important as economy drives politics, and
business shapes the social values. Businesses
have the power to make a difference.  
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Way Forward As far as Pakistan is concerned, I
think that there is need to create synergy
between government and business community to help
resolve the present economic crisis and put the
country on path of progress and prosperity.  
The Institute of Cost and
Management Accountants is
always there to help the
Government in its efforts to bring
economic prosperity by extending
its professional expertise.  
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South Asian Regional Standards Organisation
(SARSO) Chandan BahlScientist
E(International Relations)Bureau of Indian
StandardsIndia
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Disclaimer This is not a presentation by SARSO
but it is presentation of factual information
on SARSO by BIS
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ABOUT SAARC

• South Asian Association for Regional Cooperation
  (SAARC) was formally launched in 1985
• Its seven founding members are Bangladesh,
  Bhutan, India, Maldives, Nepal, Pakistan, and Sri
  Lanka. Afghanistan joined SAARC in 2007
• The main objectives of SAARC are to place
  regional cooperation on a firm foundation,
  accelerate the pace of social and economic
  development of the countries, and further the
  cause of peace, progress and stability in the
  region.

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TRADE AND REGULATORY COOPERATION

• With the increase in non-tariff barriers in
  trade, countries/ regions need to look at ways to
  combat them and thus Regulatory Cooperation
  assumes importance.
• Harmonization of technical standards and mutual
  recognition of conformity assessment procedures
  between trading partners are forms of Regulatory
  Cooperation that helps in removing the technical
  barriers to trade and facilitates flow of goods
  and services in the region.

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ESTABLISHMENT OF SARSO- BACKGROUND

• SAARC Committee on Economic Cooperation (CEC) -
  established in 1991, for identifying and
  implementing programmes in the core area of
  economic and trade cooperation.
• The Sub-Group on Standards and Quality working
  under the auspices of the CEC in its 2nd meeting
  on 30-31 August 2006, decided to set up the SAARC
  Standards Coordination Board (SSCB), as a
  precursor to the setting up of the SAARC Regional
  Standards Body
• SSCB comprised of a member from each of the
  National Standards Body of the Member States

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ESTABLISHMENT OF SARSO- BACKGROUND

• SSCB at its 3rd meeting held on 1-2 Nov 2007,
  recommended for setting up of the SAARC Regional
  Standards Body, to be formally named as the South
  Asian Regional Standards Organization (SARSO)
• SSCB approved the text of the draft agreement for
  establishment of SARSO

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SARSO AGREEMENT

• The Agreement on the Establishment of the South
  Asia Regional Standards Organization (SARSO), was
  signed at 15th SAARC Summit held in Colombo, Sri
  Lanka on 2nd - 3rd August, 2008, by the Foreign
  Ministers of the SAARC Member States
• The Agreement on establishment of SARSO has since
  been ratified by all Member States with
  Afghanistan ratifying the Agreement in May 2011.
• The Agreement on establishment of SARSO has
  entered into force with effect from 25 August
  2011 with issuance of Notification to this effect
  by the SAARC Secretariat.
• SARSO is to be located in Dhaka, Bangladesh
• The first meeting of the Governing Board of SARSO
  is likely to be held in December 2011 in
  Bangladesh

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OBJECTIVES OF SARSO

• To promote and undertake harmonization of
  national standards of the SAARC Member States
  with a view to removing TBT and facilitate flow
  of goods and services in the region
• To develop SAARC standards on the products of
  regional/sub-regional interest
• To encourage the use of international standards
  published by ISO, IEC, etc. by way of adoption,
  where appropriate, as SAARC Standards

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OBJECTIVES OF SARSO (Contd..)

• To encourage exchange of information and
  expertise among the NSBs of the Member States in
  the fields of Standardization and Conformity
  Assessment
• To facilitate capacity building among the Member
  States in the fields of Standardization and
  Conformity Assessment by way of training,
  workshops, seminars, etc
• To act as a source of information for the Member
  States on standards, regulations, conformity
  assessment
• To present the common interests of the Member
  States in the various international
  standardization organisations

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OBJECTIVES OF SARSO (Contd..)

• To establish mutually beneficial cooperation with
  the relevant international and regional
  organizations as per relevant SAARC guidelines
• To promote MRAs on Conformity Assessment
  Procedures among the Member States
• To encourage sharing of facilities relating to
  conformity assessment procedures among the Member
  States
• To explore the possibility of having a common
  mark of conformity among the Member States
• To undertake any other task(s) as deemed
  appropriate.

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STRUCTURE OF SARSO

• The Organisation shall comprise of
• Governing Board
• Technical Management Board (TMB)
• Director-General and
• Secretariat.

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Composition of Governing Board

• highest authority of SARSO vested with all powers
  relating to its functioning.
• consists of the Heads of respective NSB of each
  Member State. Each Member and his/her Alternate
  shall serve at the pleasure of the appointing
  Member State.
• The Chairperson of TMB, the Secretary General of
  SAARC or his representative and the Head of the
  Secretariat to be the ex-officio Members of the
  Governing Board.

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Functions of Governing Board (GB)

• GB may create and assign other entities, as and
  when required, for the smooth operation of the
  activities of SARSO
• In line with the objectives and functions of
  SARSO, GB shall formulate policies for the
  effective functioning of SARSO
• GB may also give directives and provide guidance
  to the other organs of SARSO including TMB and
  Sectoral Technical Committees.

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Technical Management Board (TMB)

• consists of one technical expert nominated by
  each NSB of the Member States.
• responsible for the planning, coordination and
  monitoring of all the technical work of SARSO.
• may establish Sectoral Technical Committees (STC)
  as and when deemed necessary for development of
  harmonised standards
• scope and programme of work for each STC under
  TMB shall be approved by GB
• shall meet at least annually preferably
  immediately before GB meetings and submit its
  reports to GB

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Director-General and the Secretariat

• SARSO shall be headed by a Director-General who
  will be appointed by the Governing Board for a
  period of three years from among the nationals of
  the Member States
• The Organisation shall have a Secretariat
  consisting of officers and staff

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ON GOING WORK

• Development of SAARC Standards
• The following products have been identified for
  harmonization/development of SAARC Standards
• Sugar Skimmed Milk Powder Biscuits
• Instant Noodles Vegetable Ghee Electric Cables
• Textile Fabric Jute Cement Steel
  Tubes Structural Steel Toilet Soap
• Sector based approach adopted for harmonization/
  development of SAARC standards with setting up of
  Sectoral Technical Committees
• (i) Food and Agricultural Products
• (ii)        Electrical, Electronics, Telecoms
  and IT
• (iii)       Jute, Textiles Leather
• (iv)       Building Materials
• (v)        Chemical and Chemical Products

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ON GOING WORK

• Draft SAARC Agreement on Implementation of
  Regional Standards
• The objective of this agreement is to provide the
  framework as well as the guiding principles for
  implementation of the SAARC standards

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ON GOING WORK

• Draft SAARC Agreement on Multilateral Arrangement
  on Recognition of Conformity Assessment
• The objective of this Agreement is to facilitate
  SAARC Member States to accept results of
  conformity assessment

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EXPECTED BENEFITS INDIAN PERSPECTIVE

• Harmonization of national standards of the Member
  States would help in removing the technical
  barriers to trade and facilitate flow of goods
  and services in the region
• Facilitate in projecting common interests of the
  Member States in the various international
  standardization organizations
• Facilitate acceptance of results of conformity
  assessment amongst the countries in the region,
  and
• Facilitate capacity building among Member States