UPSC foundations · Note 117
SAARC: why South Asia's regional organisation stalled
Study context: GS II — India and its neighbourhood — relations; bilateral, regional and global groupings and agreements involving India and/or affecting India's interests; effect of policies and politics of developed and developing countries on India's interests, Indian Diaspora.
The South Asian Association for Regional Cooperation, or SAARC, was founded in Dhaka in 1985 by Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka, with Afghanistan joining in 2007. Its Charter commits members to promoting welfare, economic growth, social progress and cultural development in the region, and to cooperation in areas such as agriculture, health, education, science and technology. Decisions are taken by unanimity, which means any member can block a decision.
SAARC created several institutions and agreements, including the SAARC Development Fund, the South Asian University in New Delhi, and the South Asian Free Trade Area, or SAFTA, which came into force in 2006. SAFTA aimed to reduce tariffs among members, with longer timelines and sensitive lists for less developed members. Intra-regional trade in South Asia remains low compared with other regions, however, partly because of political tensions, non-tariff barriers, poor connectivity and the size difference between India and its neighbours.
The organisation's summits have been the clearest sign of its difficulties. The nineteenth SAARC summit, scheduled for Islamabad in 2016, was cancelled after India, Bangladesh, Bhutan and Afghanistan declined to attend following a terrorist attack in Uri. No SAARC summit has been held since the eighteenth summit in Kathmandu in 2014. Working-level cooperation has continued in some areas, including through the SAARC Disaster Management Centre and health cooperation during the COVID-19 pandemic, but the leaders' forum has not met.
SAARC's experience raises a question for regionalism in South Asia: can an organisation based on unanimity work when its two largest members are in a prolonged confrontation? Some argue that sub-regional cooperation, through BIMSTEC or bilateral projects, is more practical. Others argue that abandoning SAARC removes the only forum where all South Asian leaders meet, and that its social and technical cooperation still has value even when political summits stall.
Key takeaways
- SAARC was founded in Dhaka in 1985 with seven members; Afghanistan joined in 2007, and decisions require unanimity.
- The South Asian Free Trade Area came into force in 2006, but intra-regional trade remains low compared with other regions.
- No SAARC summit has been held since Kathmandu in 2014; the 2016 Islamabad summit was cancelled after India and others declined to attend.
Why it matters for civil studies
SAARC shows the limits of unanimity: a regional organisation cannot move faster than the trust between its most divided members.
Think it through
Is a stalled SAARC still worth keeping for technical cooperation, or should South Asia build new forums and let SAARC lapse?
From the Public Notes companion study collection. Editorial context and corrections.