Current Status of SAARC Initiatives

SAARC Framework Agreement for Energy Cooperation was signed in 2014 and is considered to be major step towards a SAARC Market for Electricity (SAME). Its objective is to improve power availability in the entire region and facilitate integrated operation of the regional power grid.

Comment

This concept is there in minds of policy makers for many years, but so far little progress has been made. One reason is lack of political will, and frequent political tensions among the countries. However, the major issue is that when all SAARC countries are power deficient, how an interconnected power grid can be feasible. The countries actually are relying on tapping the untapped potential to realize such a grid. The idea is that if there is enough power generation, one region / country can fulfil demand of other country and prerequisite for that is a seamless SAARC power grid within the next few years. Secondly, SAARC countries are located in different time zones and peak demand in each of them occurs at different point of time. Thus, the seamless connectivity can also address issue of load shedding. Thirdly, Nepal has its annual peak {demand} in winter while India and other countries have the same in summer. If Nepal produces enough power, it can supply its surplus power to India and can import surplus power from India in winter. {Read this blog for details}

In March 2016, an agreement was reached to create a SAARC environment and Disaster Management centre between India and Pakistan as a split entity. While India will host the Disaster Management Centre, Pakistan will house the offices for the Environment and Energy Centre.

Comment for Analysis

The way this new body was split between the two countries shows how the members of SAARC have competed with each other in almost every matter of importance. The region faces numerous challenges related to climate change, environment degradation and natural disasters and none of them is fully capable to deal with them. There was an idea of merging Disaster Management, Forest Management, Coastal Area Management Centre and Environment centres into a dedicated SAARC Environment and Disaster Management Centre. But they have failed to set up it as a single centre because both India and Pakistan had laid claims to house the new body; and thus an agreement was reached to set up it as a split body. Previously, the countries had planned to set up a SAARC Disaster Management Rapid Action Force (SDMRAF) in the aftermath of Nepal earthquake, but then failed to set up that also.

In 2014, SAARC countries had agreed to set up a South Asia Economic Union (SAEU) on the lines of European Union by facilitating a common market and removing trade barriers. This had to be achieved in a phased manner going through various stages viz.  Free Trade Area, a Customs Union, a Common Market, and a Common Economic and Monetary Union.

Analysis

The leaders of SAARC countries are great dreamers. They had dreamt of a SAFTA (South Asian Free Trade Area) in 2004 to foster intra-regional trade by creating a unified South Asia market. However, not much has happened since then. In 2014, the intra-regional trade in South Asia accounted only for 5% of total trade and is worth around 0.25 billion dollars which is abysmally low as compared to other such regional organizations. Though a clear road map { from FTA to Monetary Union}, but to begin to move in that direction, South Asian Free Trade agreement (SAFTA) needs to be implemented first. Based on SAFTA experience so far, the SAEU also appears a distant dream.

The socio-economic disparity, political differences and disturbances, mistrust; dangers from non-state actors in internal security, civil and ethnic conflicts etc. are some of the problems which don’t allow realizing a SAFTA or SAEU dream. At the same time, the geographical disparities and challenges hinder the intra-regional trade. Absence of required infra, required financial institution, cross border warehousing facilities, issues of smuggling and so on are some of the other major problems. The progress is slow and mainly visible in recent times in the form of BBIN-MVA.

Kindly note that the countries have also planned to start a SATIS {SAARC Agreement on Trade in Services} to spur trade in services between the countries. It also seems to be a distant reality as of now.

SAARC Development Fund (SDF) was inaugurated in 2010 during the 16th SAARC summit at Thimphu. It’s precursor was South Asian Development Fund (SADF), which itself was launched in 1996 by merging two existing facilities called SAARC Fund for Regional Projects (SFRP) and the SAARC Regional Fund.

SDF was created “umbrella financial mechanism” for all SAARC projects and programmes. Its core objective is to accelerate the economic growth, social progress and poverty alleviation in the region. It funds the projects in South Asia region via three windows viz. Social Window, Economic Window and Infrastructure Window. At present, only Social Window is in operation, the other two windows are yet to open.

The Social window currently funds the projects mainly on poverty alleviation, social development focusing on education; health; human resources development; support to venerable/disadvantaged segments of the society; funding needs of communities, micro-enterprises, rural infrastructure development. Some of the key projects taken up by SDF include:

1. SAARC Business Association of Home based workers {SABAH} established in Afghanistan, Bangladesh, Bhutan, Maldives, Nepal, Pakistan and Sri Lanka. These are Civil Society Organizations for promotion of welfare for home based workers and their skill development
2. Establishment of Trade Facilitation Centers established in Bhutan, Nepal Pakistan and Sri Lanka
3. Strengthening Maternal and Child Health Including Immunization
4. Scaling up of Zero Energy Cold Storage (ZECS) technology for the horticultural commodities in the high hills of SAARC countries
5. Empowering Rural Communities “Reaching the Unreached” via establishing Community Centres in various countries.
6. South Asia Initiative to End Violence Against Children (SAIEVAC)
7. Post Harvest Management and Value Addition of Fruits in Production Catchments in SAARC Countries

We note here that SDF currently struggling with lack of finance for the effective implementation of projects. After it was formed, only social window has been activated so far. No such progress has been done towards Infrastructure window which is equally important for region.

BBIN an ambitious initiative by four countries of South Asia i.e Bangladesh, Bhutan, India and Nepal with the aim to facilitate movement of vehicles carrying cargo and passengers in each other’s territory without the need for trans-shipment of goods from one country’s truck to another’s at the border. As of January, 2018, three countries viz. India, Bangladesh and Nepal have agreed on the text of the passenger protocol, the document detailing procedures for cross-border movement of buses and private vehicles. Bhutan had earlier signed the agreement but failed to ratify it.

Background

The agreement came in the backdrop of Kathmandu summit 2014 wherein India proposed SAARC Motor Vehicle Agreement which could not progress due to resistance by Pakistan. So, India conceived BBIN on similar lines.

It was signed by all the member countries in June, 2015 but its enforcement had not yet come into play because of non-ratification by Bhutan (Other three countries have ratified).

Perceived advantages of the agreement

This agreement enables the vehicles to enter into any of the four countries without need for trans-shipment of goods from one country’s truck to another’s at the border. Under the system, cargo vehicles are tracked electronically; E-permits are issued online and sent electronically to all land ports. Vehicles are fitted with an electronic seal that alerts regulators every time the container door is opened. This saves not only time but also cost. For example, earlier a truck would travel 1540 kilometres through Indian territory to reach from Kolkata to Agartala. Once this agreement is in force, the same truck travelled only 640 kilometres via Dhaka. Thus,

• Once the agreement comes into force it will save a lot of time in movement of goods between member nations.
• It will create a seamless supply chain thus reducing the cost of doing business across borders and promoting the overall economic development of the region.
• It will strengthen the sub regional unity between these nations. Once the connectivity will be established then it can be further extended to southeast and east Asia.

Role of Asian Development Bank

The Asian Development Bank (ADB) has been providing technical, advisory, and financial support to the BBIN MVA initiative as part of its assistance to the south Asia sub-regional economic cooperation (SASEC) programme, a projects-based economic cooperation initiative that brings together the BBIN countries, Maldives, Sri Lanka and more recently, Myanmar.

Current status of the project

The ratification of the agreement was stuck in Bhutan’s upper house in 2017 due to which they have postponed the decision till 2018 parliamentary elections. As of January, 2018, Bangladesh, India and Nepal have given nod to operating procedures for movement of passenger vehicles under the agreement. The three countries have also agreed to conduct more trial runs for cargo vehicles under the agreement. Trial runs for Cargo vehicles were earlier conducted along the Kolkata-Dhaka-Agartala and Delhi-Kolkata- Dhaka routes.

Reasons for Opposition in Bhutan

The bill which was approved by lower house of  Bhutanese parliament  is struck in its upper house due to following reasons :

• The act will increase the traffic in Bhutan from other nations and will hamper livelihood of the Bhutanese truckers. So, Bhutan wants a cap to be fixed on the number of vehicles entering its territory.
• Being the smallest nation, among all four members it fears that it will be overwhelmed with tourists and pollution from all other member nation which will lead to environmental damage.
• Apart from these there are also political reasons. The govt fears that the permitting Nepal’s trucks in their territory would upset their electorate, thus, can suffer a big blow in 2018 parliamentary elections.

Significance

The significance of this agreement can be ascertained from various angles. Firstly, Since Pakistan was not involved here; it took only 6 months to flag off the first truck to run between India-Bangladesh-India route. This was second major multilateral agreement between South Asian Countries and marks heralding the idea of SAARC-minus-Pakistan {First I consider BIMSTEC, which was launched on initiation of New Delhi}. The further events have further strengthened that notion. Secondly, it is first stage of the $8-billion road connectivity project between these four countries and Myanmar and Thailand. The latter two countries have agreed to develop a similar agreement and take ahead this economic cooperation to the door of Association of Southeast Asian Nations (ASEAN) region

In 2011, the SAARC Leaders had endorsed a SAARC Seed Bank Agreement and a Framework for Materials Transfer Agreement. Objective of the proposed seed bank was to foster “seed security” in the region; increase seed replacement ratio; address seed shortage via collective action and act as a Regional Seed Security Reserve for member states of SAARC.

This agreement required ratification from all members to come in effect. Out of eight members, only five viz. BBIN & Sri Lanka could ratify the agreement. No action was taken from Pakistan, Afghanistan and Maldives side.

The agreement is thus currently in limbo. There are several other issues related to its functioning, mechanism etc. also which would come to fore only when it comes into existence.

Kindly note that there were talks to set up Regional Vaccine Bank and Regional Livestock Gene Bank also. None of them is in operation right now.

The SAARC Satellite, officially named the GSAT-9, is a communication satellite launched by the Indian Space Research Organisation (ISRO) on 5 May 2017 with the aim of fostering regional cooperation and development among the member states of the South Asian Association for Regional Cooperation (SAARC). The project symbolised India’s use of space technology as an instrument of diplomacy, regional integration, and socio-economic development. The initiative was proposed by Prime Minister Narendra Modi during the 18th SAARC Summit in 2014 and is often referred to as “India’s gift to South Asia.”

Background and Concept

The idea of a dedicated SAARC Satellite emerged from India’s broader vision of leveraging its advanced space capabilities for regional benefit. Prime Minister Modi proposed the concept of a “SAARC Satellite” during the SAARC Summit in Kathmandu (2014) to promote “Space diplomacy”—the use of space technology to strengthen international relations and cooperation.
The satellite was designed to provide communication, broadcasting, meteorological, and disaster management services to South Asian nations, helping them bridge the technological gap and promote regional development.
Initially, all eight SAARC member states—Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka—were invited to participate. However, Pakistan opted out of the project, citing technical and security concerns. Consequently, the satellite was launched as the “South Asia Satellite” and was offered to the remaining seven regional countries.

Objectives of the SAARC Satellite

The SAARC Satellite project aimed to enhance collaboration in science, technology, and communication among South Asian nations. Its key objectives included:

1. Promoting Regional Development: Using space technology for improving education, healthcare, agriculture, and disaster response across the region.
2. Disaster Management: Providing timely communication support and data sharing during natural disasters such as floods, cyclones, and earthquakes.
3. Telecommunication and Broadcasting: Enhancing connectivity through satellite-based broadcasting, television, and tele-education services.
4. Socio-Economic Integration: Supporting the digital infrastructure of member countries to improve governance and rural connectivity.
5. Strengthening Diplomatic Relations: Reinforcing India’s leadership in the South Asian region through technological cooperation and goodwill diplomacy.

Technical Specifications

The SAARC Satellite, GSAT-9, is part of India’s series of geostationary communication satellites developed under ISRO’s INSAT/GSAT programme.
Key technical features include:

• Launch Date: 5 May 2017
• Launch Vehicle: GSLV-F09 (Geosynchronous Satellite Launch Vehicle Mark II)
• Launch Site: Satish Dhawan Space Centre, Sriharikota, Andhra Pradesh
• Mass: Approximately 2,230 kilograms
• Orbit: Geostationary orbit at 48° East longitude
• Mission Life: Designed for over 12 years
• Coverage Area: Entire South Asian region, excluding Pakistan
• Cost: Approximately ₹450 crore, fully borne by India

Payload Details:

• The satellite carries 12 Ku-band transponders, allocated for communication and data exchange services to participating countries.
• Each country received access to one transponder, enabling independent control of data transmission for national needs.
• It facilitates telemedicine, tele-education, weather forecasting, and Direct-to-Home (DTH) services across remote areas.

Participating Countries

The countries benefiting from the SAARC (South Asia) Satellite are:

1. Afghanistan
2. Bangladesh
3. Bhutan
4. India
5. Maldives
6. Nepal
7. Sri Lanka

Each nation has its own ground station for receiving and managing satellite data, provided free of cost by India.
Pakistan, although an original SAARC member, declined participation, effectively making the project a “South Asia Satellite” rather than a strictly SAARC-wide initiative.

Significance of the Launch

The launch of the SAARC Satellite marked a milestone in regional cooperation and demonstrated India’s commitment to applying space technology for collective welfare. The event symbolised a fusion of science, technology, and diplomacy, reflecting India’s growing leadership in space-based development initiatives.
Key significance includes:

• Technological Leadership: Demonstrated India’s advanced capabilities in satellite design, construction, and launch, showcasing ISRO’s global reputation.
• Space Diplomacy: Strengthened India’s diplomatic ties with neighbouring countries through peaceful and constructive technological collaboration.
• Socio-Economic Development: Enabled access to tele-education, telemedicine, and meteorological services for smaller nations with limited space infrastructure.
• Disaster Management: Facilitated regional cooperation in real-time weather tracking, disaster prediction, and emergency communication.
• Strategic Influence: Enhanced India’s soft power in South Asia by providing a high-value asset without financial burden on partner nations.

Applications and Benefits

The SAARC Satellite supports a range of practical applications that benefit millions across the region:

1. Tele-Education: Remote learning and virtual classrooms connect educational institutions across rural and mountainous areas.
2. Telemedicine: Provides medical consultations and diagnostic assistance from major hospitals to healthcare centres in remote regions.
3. Disaster Management: Strengthens early warning systems and enables efficient coordination among South Asian countries during natural calamities.
4. Agricultural Development: Assists farmers with weather forecasts, crop monitoring, and soil data analysis to improve agricultural productivity.
5. Meteorological Services: Improves regional weather forecasting accuracy, contributing to better disaster preparedness.
6. Connectivity and Broadcasting: Enhances Direct-to-Home (DTH) television broadcasting and digital connectivity across the participating nations.

Symbolic and Diplomatic Importance

The SAARC Satellite represented a new approach to regional diplomacy through technological cooperation. It aligned with India’s vision of “Neighbourhood First” policy and “Vasudhaiva Kutumbakam” (the world is one family).
In his speech after the launch, Prime Minister Narendra Modi described the mission as “a priceless gift to our neighbours,” highlighting India’s intent to share its scientific capabilities without expecting reciprocity. The initiative also reinforced the role of science and technology in regional peace, prosperity, and integration.
The satellite was also strategically significant as it projected India’s ability to provide leadership in a region often marred by political tension and economic disparities.

Limitations and Challenges

While the SAARC Satellite has been largely successful, it also faced certain challenges:

• Pakistan’s Withdrawal: Its refusal to participate weakened the concept of full SAARC cooperation.
• Limited Regional Coordination: Some member countries initially faced challenges in establishing compatible ground infrastructure.
• Operational Sustainability: Dependence on India for technical support and maintenance may limit regional autonomy in the long term.
• Political Tensions: Periodic India–Pakistan tensions have hindered broader South Asian technological integration.

Despite these issues, the project remains a model of regional technological partnership and goodwill.

Future Prospects

The success of the SAARC Satellite has encouraged discussions on expanding cooperation in other domains of space research and technology, including:

• Joint development of Earth observation and communication satellites.
• Regional capacity building in remote sensing and space science education.
• Enhanced data-sharing mechanisms for climate monitoring and resource management.
• Integration with India’s upcoming NavIC (Navigation with Indian Constellation) system for navigation and disaster management applications.

India’s continued commitment to sharing space technology with its neighbours may lead to more collaborative initiatives under the framework of South Asia Cooperation in Space Technology and Applications (SASTA).