Economic Environment and Policies of SAARC

Presentation made by :

DHEERAJ SHARMA ( MBA)(Beta section)

South Asia Association for Regional Cooperation (SAARC) is an economic and political organisation of eight countries in Southern Asia. Its sphere of influence is the largest of any regional organization almost 1.5 billion people , which is the combined population of its member countries.

SAARC

Established - 8/12/1985 Its Seven founding members are Bangladesh , Bhutan ,

Maldives , Nepal , Pakistan , India and Srilanka . In April 2007 at the Association’s 14th summit , Afghanistan joined as its eighth member.

The first SAARC Summit was held on December 7-8 1985 in Dhaka (Bangladesh), Latest one was held in Colombo (Srilanka) from august 1-3 and the sixteenth one is proposed to be held in Bhutan this year.

Welfare of the people of south Asia.Economic growth , social progress and cultural development .Strengthen selective self – reliance among the countries of

south Asia.Understanding and appreciation of one another’s problems.Strengthen cooperation among themselves as well as with

other developing countries and international and regional organisations.

Maintain peace in the region

AIMS and OBJECTIVES

SAARC AREAS OF COOPERATION Agriculture and Biotechnology Trade & Finance Education Information , Communication & media Science & Technology Energy & Environment Tourism & Social Development Culture People-to-people Contacts

ECONOMIC ENVIRONMENT OF SAARC The acceleration of economic growth is charter objective of SAARC .

Cooperation in the core economic areas among SAARC Member countries was initiated following the study on Trade , Manufactures and services (TMS) , which was completed in June 1991.

Currently , the following important processes of SAARC are promoting cooperation in the field of trade , Economy and Finance ,and related areas:

Committee on Economic Cooperation : Overall coordination in economic areas;

SAFTA (south Asia free trade area) committee of Expert and SAFTA Ministerial Council : Administration and implementation of SAFTA ;

Finance ministers Mechanism: Cooperation in the field of finance and related areas;

Standing group on standards and SAARC Standards coordination Board: Cooperation in the field of harmonization of standards;

Group on customs cooperation is dealing with issues related to harmonization of customs rules and procedures.

ECONOMY ENVIRONMENT OF SAARC

Maldives In ancient time their was a vast renowed for fishineries.But

now a days it was a mixed economy of the Maldives is based on the principles activities of tourism , fishing and shipping.

Tourism is the largest industry in the Maldives , accounting for GDP 28%.

Fishing is 2nd largest leading sector .economic program reform by Govt. lifted import quotas and opened some exports to the private sector ,it has liberalized regulation to allow more foreign investenment . 50% fish exported especially to Srilanka ,Germany , uk,Thailand , japan , Singapore.

Agriculture and manufacturing play a minor role in the economy , constraited by limited availability of cultivated land and shortage of domestic labour . Most staple food are imported.

Industry in the Maldives consists mainly of garment production , boat building , and handicraft it was around 18% GDP.

India The SAFTA needs to be worth more than that piece of paper on which

it was written . Its time indian took concrete measures to hasten the implementation and expand the provisions of safta.

Magerially india focus in – Foreign policy , International relation and security.

Foreign policies- One is the growing importance of the Maldives in india strategic calculus , especially in the maritime domain.

Economy of india is the tenth in the world by nominal GDP and the 3rd largest by PPP , The countries is one of the G-20 is one of the major economies , a member of BRICS and a developing economy that is among the top 20 global trades according to the WTO.

Indian finance minister project the GDP growth for fiscal 2014 will be 5.5%.

IMF projects india’s GDP to grow at 5.8% over 2014-15

India has increasingly adopted free market principles and liberalised its economy to international trade.

Nepal(Kathmandu)

Develop a action plans in this area .

The Heads of state or govt.. Expressed their strong determination to deepen regional integration for peace , stability and prosperity in south asia by intensifiying cooperation , in trade , investment , finance ,energy , security , infrastructure , connectivity , tourism, science and technology cultural ; and implementing projects , programmes and activities in a prioritized , result-oriented and time-bound manner.

India getting a offer for develop and launch a settellite dedicated to saarc countries.

Economy of Bangladesh is a market – based economy . The country is classified as a NEXT ELEVEN emerging market and one of the frontier five . According to a recent opinion poll , Bangladesh has the second most pro – capitalist population in the developing world .

Bangladesh

Economy expenditure on GDP ( % real change )2015-16

Private consumption 6.2 – 2015 / 6.5 – 16

Government consumption 6.2 = 6.2

Gross fixed investment 6.8 – 2015 / 7.5 – 16

Exports of goods and services 6.0 – 2015 / 7.5 – 16

Imports of goods and services 5.9 – 2015 / 8.5 - 16

Origin of GDP ( % real change )

Agriculture 3.5 = 3.5

Industry 8.0 – 2015 / 8.4 – 16

Services 6.2 = 6.2 Economic growth

World GDP 2.3 - 2014 , 2.8 – 15 , 2.8 -16

World trade 3.4 – 2014 , 5.1- 15 , 5.3 -16

POLICIES OF SAARC

BHUTAN

Political To enhance and maintain national security

Promote world peace and security by engaging in meaningful dialogue with the international community

Promote and contribute towards international understanding and cooperation as well as international peace and security on the basis of peaceful co-existence

Economic and Trade Develop and expand mutually beneficial bilateral, regional and

multilateral economic and trade co-operation

Contribute towards the development of a dynamic and a sustainable economy through mobilization of external resources

Bhutan continues to develop and maintain friendly relations with all countries in the region and beyond. Bhutan plays an active role as a responsible member of the international community

The overall foreign policy objectives have been fulfilled by keeping Bhutan’s friends and development partners regularly informed of the developments in the country through our diplomatic missions and embassies. RGoB also exchange visits at various levels, organizes international seminars, conferences, cultural and religious exhibitions about Bhutan, and participation in bilateral and multilateral meetings including at the summit levels. MFA engages with the regional and international media to promote greater awareness of our country

INDIA

POLICIES AND OF NEW SCHEME IN INDIA This policy has resulted in the launch of new schemes such as-

Strengthening of primary health care system to enable it to meet the health care needs of older persons

Training and orientation to medical and paramedical personnel in health care of the elderly.

Promotion of the concept of healthy ageing.

Assistance to societies for production and distribution of material on geriatric care.

Provision of separate queues and reservation of beds for elderly patients in hospitals.

Extended coverage under the Antyodaya Scheme with emphasis on provision of food at subsidized rates for the benefit of older persons especially the destitute and marginalized sections.

MALDIVES

Increase the economic resilience of the MALDIVES Protect the Islamic identity of the Maldives and help

to promote the values of Islam internationally Promote greater regional cooperation in South Asia Provide quality consular services for Maldivians Promote efficiency and professionalism in the

service

THANK YOU