SAARC was established in December 1985 during the first SAARC summit that was held in Dhaka. After gaining independence from the British rule, India adopted the policy of NSR or National Self Reliance and next formed SAARC along with 6 other member nations of South Asia namely: Bangladesh, Bhutan, Pakistan, Nepal, Maldives, India and Sri Lanka which continue to be its members till date.
India succeeded in building excellent trade relations and cordial relations on social, political and economic front with the 6 SAARC countries.
India has been an active member of the SAARC and aims and fostering better mutual understanding by supporting people-to-people initiatives. India offers a great source of potential investment in terms of trade and commerce as it is the sole SAARC member to be sharing borders with all 6 members via land or sea.
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SAARC’s prime objectives include: promoting the welfare of the people of South Asia, accelerating the Economic growth, social progress; providing dignified livelihood to all individuals and on a larger scale promoting the self-reliance amongst the South Asian nations and building trust and appreciation for other countries’ problem.
In the way of achieving these objectives, poverty has been major hindrance. India offered a contribution of US $ 100 million at the twelfth Summit held at Islamabad in 2004.
India’s disputes and military rivalry with Pakistan is believed to be the cause of ineffectiveness of SAARC in integrating South Asian countries. If Indo-Pak relations improve, many SAARC nations could benefit from it by improved trade relations and creation of better export markets. SAARC has failed to work towards regional co-operation mainly because India has been reluctant to solve major regional disputes which have given rise to economic and political problems in South Asia.
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Since India has an unbeatable economic, military strength and international influence compared to all 6 members of SAARC, the disparity of power brings in the reluctance from smaller states to work with India. They have fear of dominance from India if they co-operate in order to facilitate faster economic growth.
India has also heightened the fears of fears of South Asian nations by acting in a dominating and arrogant way. Its dispute with neighboring Bangladesh due to redirection of water flows impacting Bangladesh’s agricultural production has kept Bangladesh afraid of its powers.
Nepal is also fearful that India may take over its world trade because of its geographical suitability. As a result of all these fears and disagreements, SAARC has failed to promote regional co-operation and mutual trust amongst the South Asian countries.
The tension between India and Sri Lanka that prevailed for 4 years over Indian Military trying to curb the revolution by the Liberation Tigers of Tamil E Elam and Indo-Pak Dispute over the Kashmir valley and the resulting Trade violations are enough to prove that South Asian countries fail to achieve SAARC objectives by any means.
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India must come to the front and initiate measures to encourage nations to prove their mettle and make the SAARC summit a meaningful affair. Appropriate measures should be taken with the intent of maintaining peace and resolving disputes amongst the SAARC member countries. Special Economic Zones and Export Promotion Zones should be created in all member countries to make trading easier and smooth the relations between the South Asian nations.
