CSS Pakistan Affairs | Comparative Analysis of SAARC and EU
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Outline
1- Introduction
2- Understanding of SAARC
- ✓Objectives of SAARC
- ✓Principles of SAARC
3- Reasons for the failure of SAARC
- ✓Weakness in the institutional structure of SAARC
- ✓Poor living conditions of people in South Asia
- ✓Disputes among SAARC member countries
- ✓Rivalry between India and Pakistan
- ✓Extra-regional trade instead of intra-regional trade
4- Lessons SAARC can learn from the European Union to become a successful organization
- ✓Institutional Reforms
- Enhancement of Institutional capacity
- Making a rule-enforcing body
- Establishment of a watchdog system
- Conflict Resolution Mechanism
- ✓Economic Reforms
- Single Market
- Common Currency
- Local Free Trade Agreements (FATs)
- Generation of Business Opportunities
- Exchange with other Regional Bodies
- ✓Social Reforms
- Human Rights and Equalities
- Focus on Common Challenges
- People-to-People Connectivity
- Leverage Technology and Innovation
- ✓Ideological Reforms
- Need for a Single South Asian Identity
- Shared Vision and Goals
- Public Awareness and Ownership
- ✓Political Reforms
- Strengthening Political Will and Trust
5- Conclusion
Answer to the Question
1-Introduction
South Asian Association for Regional Cooperation (SAARC) is the union of eight South Asian countries for economic, technological and cultural development programs of its member countries, but due to some major issues in the social, technological, and economic sectors, it has remained unsuccessful in resolving politico-economic problems in South Asia. European Union (EU), one of the most advanced, successful, and best common market and economic union of 27 European countries, is the best example for SAARC to learn efficient methods of benefiting its region. This can be done by adopting a strengthened regional economic cooperation that, in turn, will help them to protect and preserve the sovereignty of the region. Strengthening the institutional structure of the organisation, providing a single market by removing trade barriers, ensuring human rights and social development, using technology for checks and balances, and ensuring a single identity for creating a sense of participation are some important lessons that SAARC should learn from the EU.
2-Understanding of SAARC
The South Asian Association for Regional Cooperation (SAARC) was established on 8 December 1985 on the idea given by General Zia-ul-Rehman of Bangladesh. SAARC has eight members: Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka. It also has nine observer states: Australia, China, and Myanmar. the European Union, Iran, Japan, Mauritius, South Korea, and the US). The Secretariat of the Association was decided in Kathmandu, Nepal, on 17 January 1987. Its First General Secretory was A Bangladeshi diplomat, Baul Ehsan, and its recent General Secretory was Ghulam Sarwar from Bangladesh. He is the 15th secretory of the Association, appointed in Oct 2023.
- ✓Main Sectors of SAARC
- ✓Objectives of SAARC
The objectives of the SAARC are to promote the welfare of the inhabitants of South Asia by improving the quality of life to increase socio-economic progress and cultural development in the region, and to provide all individuals an equal opportunity to live in dignity by realising their full potential. SAARC also aims to strengthen cooperation with other countries and organisations having similar objectives and principles.
- ✓Principles of SAARC
- Cooperation and collaboration within the organisation is based on respect for
- The principles of equality of sovereignty
- Territorial integrity
- Political independence
- Noninterference in the internal affairs of other countries
- Mutual benefit
2. Such cooperation complements and does not replace bilateral or multilateral cooperation.
3. Such cooperation should be associated with all the obligations, both bilateral and multilateral, of the member states
3- Reasons for failure of SAARC
- ✓Weakness in the Institutional structure of SAARC:
SAARC, as an organisation, has many weaknesses. There are many institutional weaknesses which hinder it from being successful. The Council of Ministers and all its committees, including the standing committee, are not powerful enough to implement the decisions. It also has remained unsuccessful in calling its summit regularly; its last summit was conducted in 2014. The decision-making method based on consensus creates obstacles to the decision-making process of this organisation. It also lacks a powerful rule-enforcement body like a court of justice, which can force the member countries to abide by its decisions. Many significant SAARC programs, such as SAPTA, SAFTA, and SAARC Development Bank, are not working properly or have become dysfunctional. All these institutional flaws are challenging the functioning of SAARC.
- ✓Poor living conditions of people in South Asia:
All South Asian countries (eight countries) have common racial, geographical, and cultural Characteristics; therefore, the problems of South Asian countries are also collective. In almost all the South Asian countries, people have been living in poor conditions such as overpopulation, unemployment, widespread poverty, underdeveloped infrastructures, weak relations, rebellions, long-term mistrust and suspicion of each other. Furthermore, terrorism, drug smuggling across the border, and the instability in Afghanistan have worsened the conditions, leading to the failure of SAARC.
- ✓Disputes among SAARC member countries:
Bilateral disputes also serve as a leading cause of tension among the South Asian countries that cause hindrances to developing consensus among them. Following are some disputes that are apples of discord in South Asia. First, the territorial disputes between Afghanistan and Pakistan over the Durand Line and between India and Pakistan over Kashmir. Second, there are water disputes: Eastern river water disputes between India and Pakistan, the Kabul River water dispute between Pakistan and Afghanistan, and the problem of dividing the Ganges River between India and Bangladesh. Fourth, the ideological disputes between India and Pakistan. Last but not least, the dispute between India and Sri Lanka over the Tamil Tigers separatist group. Due to these disputes, instead of cooperation, states are in competition with each other. Countries prefer their personal interest over the collective interest, and it has badly impacted the functionality of the SAARC.
- ✓India and Pakistan Rivalry:
India and Pakistan are among the largest and most important countries in South Asia. Since their independence, disputes such as ideological issues, security issues, Kashmir issues, arms race, and competition between the two countries have continued. This long-standing enmity between India and Pakistan nullifies any effort and activity to increase agreements as they focus in the screening of the power, so they give less attention to the resolution of regional problems.
- ✓Extra-regional trade instead of intra-regional trade:
Despite geographical proximity and bilateral and multilateral free trade agreements (SAPTA and SAFTA), the share of intra-regional trade in South Asia compared to extra-regional trade is very insignificant and intra-regional trade accounts only for 5% of the total trade in the region. Official trade statistics do not reflect the real volume of trade among South Asian countries, and a significant portion of South Asia’s intra-regional trade is conducted through unofficial channels, including smuggling networks and third-party countries. Moreover, tariff and non-tariff barriers and the lack of relative economic advantage in the region, which makes economic complements difficult, have largely prevented the growth of intra-regional trade in South Asia and directed it towards extra-regional resources, and this is more prominent for India and Pakistan than other South Asian countries. Recently, India has tried to increase its trade relations with South Asian countries. It has taken necessary steps to create an open space consisting of South Asian countries and establish regional cooperation, but regional economic convergence in South Asia is in recession.
4- Lessons SAARC can learn from the European Union to become a successful organization
- ✓Institutional Reforms
Institutional strengthening of an organisation is crucial for policy implementation and proper management of ongoing projects. One of major reasons behind the success of EU is that it has strong and well organized institutional structure. Here are the following institutional changes that can SAARC should make viewing the EU.
Enhancement of institutional capacity:
The European Union’s institutional set-up consists of 7 European institutions, including three main bodies: The European Commission, Parliament and Council; they work together to address the common interests of the EU. Learning from the institutions of the EU, SAARC can also establish powerful mechanisms for policy monitoring, formulation, and implementation. This includes strengthening the secretariat and SAARC Ministerial Council, creating specialized bodies, and ensuring efficient coordination among them.
Establishing a rule-enforcement body:
The EU’s court of justice provides a wealth of case-laws that interprets its legislation which offers insights into how legal frameworks can help supporting regional cooperation and integration. Similar to EU, SAARC can also make a rule-enforcing body which obliged the member countries that they will carry out and abide by all organisation’s decisions.
Establishment of a watchdog system:
The OECD Library of EU presents a comprehensive case study on the European Union, detailing its structure, policies, and the mechanisms that have contributed to its success as a regional organisation. SAARC should also establish a mechanism that can highlight the flaws leading to the weakening of SAARC’s status.
Conflict Resolution Mechanisms:
Resolving conflicts and regional peace is necessary for the progress of SAARC member countries. The EU’s foreign policy, which is based on diplomacy, has contributed to long-lasting peace by resolving conflicts among countries and promoting international understanding. Learning from the EU, SAARC can prioritize dialogue, mediation, and preventive diplomacy. Establishing SAARC as a zone of peace by promoting mutual security arrangements can help mitigate regional conflicts and foster a stable environment favorable for economic growth.
- ✓Economic Reforms
Single Market:
The EU’s main economic engine is its single market that allows the free movement of services, goods, money, and people. SAARC can work to achieve a similar goal by reducing tariff and non-tariff barriers, promoting connectivity among member states, and promoting trade liberalization. SAARC also needs to revive the SAPTA and SAFTA to achieve this purpose.
Common Currency:
A common currency among member countries makes business and investment easier, cheaper and less risky. It also helps private consumers and businesses to secure the best prices. Euro, the common currency of EU, has facilitated trade and economic stability within the EU countries. A common currency for SAARC could also be explored to encourage trade and investment of all kinds among countries by reducing currency fluctuation and exchange costs.
Local Free Trade Agreements (FATs):
Local free trade agreements are of significant importance for the economic integration of members of an organisation. EU, through its FATs not only for its intra-EU trade but also with 72 foreign countries, e.g. Singapore, India, etc., makes it the world’s largest market area that accounts for more than 30% of the EU’s gross domestic product (GDP). Learning from the EU, SAARC needs not only to revive its SAPTA and SAFTA to increase intra-trade agreements but also to develop new agreements with other countries of the world to increase its economy, which is only 5.21%.
Generation of Business Opportunities:
The EU offers security and opportunities for businesses and markets. Companies benefit from access to streamlined trade procedures and a vast consumer base. In addition to it, the EU’s regional development funds help poor regions to enhance their infrastructure and to compete globally. For instance, case studies of the EU’s collaboration with international organisations, such as the United Nations, NATO, and the African Union, demonstrate the EU’s strategic engagement in addressing global challenges. SAARC should also provide such opportunities so that local businesses can make progress, leading to an uprising in the economy of South Asia. To achieve this purpose, strengthening the SAARC Development Bank would also be very helpful.
Engage with Other Regional Bodies:
SAARC should seek partnerships and trade agreements with other regional as well as international organisations like ASEAN and the EU to expand its global reach and influence. For instance, a case study of the EU’s collaboration with other international organisations, like the United Nations, NATO, and the African Union, demonstrates the EU’s strategic engagement in addressing global issues.
- ✓Social Reforms:
Human Rights and Equalities:
The EU upholds fundamental rights and equality. The Character of Fundamental Rights of the EU ensures citizens’ rights, regardless of nationality. Notable achievements include advancing LGBTQ+ rights, combating discrimination, and gender equality. Learning from the EU’s Charter of Fundamental Rights, SAARC can protect citizens’ rights and promote tolerance, equality, and women’s empowerment, addressing caste-based discrimination and ensuring inclusivity and the rule of law within its member states.
Focus on common Challenges:
The EU has been successfully spreading its benefits to the common man.Its success in providing aid, building cross-border infrastructure, and helping development assistance has facilitated economic growth and integration. SAARC can also address common regional and societal challenges, such as poverty, illiteracy, poor infrastructure, energy shortage, food and water crises, and health issues, to attain sustainable growth. Revitalising the IPA (Integrated Program of Action) and strengthening the SAARC Development Bank and SAARC Food Bank can play a significant role in resolving these challenges.
People-to-People Connectivity:
The EU enhances cultural understanding and cooperation and emphasises citizen mobility, which has strengthened its regional bonds. The Erasmus+ initiative of the EU promotes student mobility by allowing millions of young Europeans to study abroad, observe different cultures, and gain valuable skills. SAARC could implement similar exchange programs to foster regional understanding and solidarity because facilitating student exchanges, joint research, cultural festivals, and tourism can enhance people-to-people connectivity among its member countries. To achieve this purpose, the up-gradation and expansion of SAVE (SAARC Audio Visual Exchange Program) and SYVP (SAARC Youth Volunteer Program) policies would be very beneficial.
Leverage Technology and Innovation:
In the modern contemporary world, the use of technology in every sector of life is crucial. The EU Commission has adopted a recommendation on technological use, such as for the purposes of regional security, economic security and cyber security. SAARC should also invest in digital infrastructure and innovation to share the data reliably, make business transactions, prevent drug and terrorist movements across the border, reduce the risks of cyber-attacks by terrorist organisations, and improve transparency, trust, and efficiency in regional cooperation.
- ✓Ideological Reforms:
Need for a Single South Asian Identity:
The EU serves as a tangible sign of European identity. Despite challenges such as and Euroscepticism and Brexit, it has fostered a sense of unity and shared purpose among its all member states. Similarly, SAARC also needs to create a single South Asian identity to create a unity and brotherhood, which would help in collaboration among the different religious and ethnic groups of its South Asia because cooperation is a key factor for the achievement of a goal.
Shared Vision and Goals:
SAARC member countries should collectively define a clear vision and common goals. Like EU, it should focus on peace, stability, economic growth, and regional integration. A shared commitment to a common objective will foster cooperation and will drive effective decision-making.
Public Awareness and Ownership:
Public awareness and participation play a significant role in the success of a project, system, country or region. The EU’s success also lies in citizens’ ownership and identification with the project; therefore, SAARC also needs active public engagement. To achieve this purpose, SAARC can organise awareness campaigns, seminars and conferences at the public level, involve civil society, and create a sense of regional identity by expanding its SYAS (SAARC Youth Awards Scheme).
- ✓Political Reforms:
Strengthen Political Will and Trust:
A strong political will and trust among member countries of an organisation is important for the smooth functioning of that organisation. Just as the EU was built on the foundation of strong political will, particularly between France and Germany post-World War II, SAARC needs a similar commitment from its member states, especially between India and Pakistan. Overcoming political differences by building trust is compulsory for effective functioning and for the achievement of SAARC goals.
5- Conclusion
The SAARC holds significant potential as a platform for regional integration and development among South Asian countries, yet the challenges posed due to the weak institutional structure of the SAARC, bilateral conflicts among states, and poor socio-economic conditions are creating obstacles in the way of the success of this organisation. Therefore, this is the demand of the day that SAARC should follow the institutional, ideological, economic, and social models of the EU to emerge as a successful organisation around the globe.
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