The leaders of the seven South Asian nations concluded their Dhaka summit on 13 November 2005, with a promise to intensify efforts for peace, poverty alleviation and progress for 1400 million people of the region. The present member countries of the South Asian Association for Regional Cooperation (SAARC) are Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka. However, in this Dhaka SAARC Summit, the member countries agreed to include Afghanistan also as a new member of the Association.
This 13th regional summit marked the starting of a new decade for SAARC with its completion of 20 years. SAARC started its journey, effective from its first summit at Dhaka, Bangladesh in 1985.
At the end of its two-day meeting, the summit adopted a 53-point Dhaka Declaration, pledging to draw a road map for the next decade, slash trade barriers from next year to boost economic growth and combat poverty and terrorism.
Combating terrorism and poverty alleviation figured prominently in the addresses of the seven heads of state. They also stressed the need for setting up effective measures to cope with the natural calamities and disasters. It may be mentioned here that during the year of 2005 alone the people of South Asia suffered a lot due to tsunami and earthquake. The South Asian leaders expressed their determination to work together to implement the SAARC proposals and called for implementing the agreement on South Asian Free Trade Area (SAFTA) to be effective from January 2006.
During its last two decades SAARC could not deliver enough for the people of the region. This was mainly due to the differences between two major partners of SAARC – India and Pakistan. However, during the recent years with the progress of various confidence building initiative and peace process from both the side, the environment for the understanding and cooperation among the countries of the region has improved. Inter-region flow of trade and tourism is on the increase now.
New SAARC Chairperson Khaleda Zia (Bangladesh prime minister) declared that the leaders at the summit have designated the coming 2006-2015 decade as the "Decade of Implementation" and proclaimed it as the “SAARC Decade of Poverty Alleviation”.
The heads of states in their statements welcomed the inclusion of Afghanistan as the eighth member of SAARC and China and Japan as an observer to the regional grouping. I have every confidence that it will open a new chapter in the history of South Asia, she told the summit.
Indian Prime Minister Manmohan Singh, whose country will host the next SAARC summit, said the threat, poverty posed to regional stability had rightly been at the centre of the discussions at the summit. The magnitude of this problem remains a major concern. It will require sustained and targeted efforts in order to reduce and eliminate the poverty in South Asia. He further said that during the coming days South Asia need to emerge as a part of the impressive resurgence of larger economic platform of Asia.
In addition to tackling poverty, the leaders also agreed to set up a disaster preparedness centre in the Indian capital New Delhi. This step is required in view of two devastating natural disasters in the region -- December 2005 killer tsunami and last month’s (October 2005) sever earthquake in Kashmir.
Pakistan Prime Minister Shaukat Aziz said it was time to recognize the impact of conflict on the region’s economies. As we look at the 20 years of SAARC, we cannot escape the conclusion that South Asia lags behind its larger Asian neighborhoods in terms of economic and social advancement, he said. We have remained embroiled with conflict management. So we need to move towards conflict resolution, he said. He also suggested that in order to promote and expand IT in the region India may take the initiative, similarly for micro-credit Bangladesh and for tourism Maldives may play their role.
Maldives President Mamun Abdul Gayum suggested forming a SAARC Human rights body to take care and improve the Human rights aspect in the region. It may be mentioned here that President Gayum is the only head of the state attending all the SAARC summits since 1985.
The Nepalese King Gayanendra spoke very loudly about the need to combat terrorism in an effective manner. Nepal is already facing awful terrorist upsurge since last few years. He urged all the countries to provide proper attention to this growing menace of terrorism. He also informed that anti terrorist steps taken by his government will not be harmful for functioning of democracy in Nepal.
Sri Lankan President Chandrika Kumartunga delivered her views on the economic development and poverty alleviation for the region. It was the last Saarc Summit for her as she would retire after the November 2005 election in her country.
The Bhutanese Prime Minister Lyonpo Sangay Ngedup also spoke about the need for effective poverty alleviation measures for the region. Moreover, he spoke about the great cultural heritage of the region of South Asia marked by diversity and unity.
The Dhaka Declaration promised speedy resolution of the unsettled issues in respect of implementation of SAFTA from January 1, 2006. It was noted that it may be a first step towards evolving a regional economic union. "The launching of SAFTA would mark an important milestone towards a South Asian economic union," said the declaration.
It was agreed that all negotiations for the preparations of the South Asian Free Trade Agreement (SAFTA) would be concluded by the end of November 2005.
The deal, if implemented, would create the world’s biggest free trade area and it will contribute vigorously in raising the living standards in South Asia.
South Asia's intra-regional trade is only 3 to 4 percent of its total trade volume although it has a wide range of economic potentials and a 450-million-strong middle class, bigger than the population of the US and Canada combined or the European Union (EU).It may be noted here that, trade among the EU member states is 66 percent of their total trade volume and that among the ASEAN member nations it is 28 percent, while the intra regional trade among the South Asian countries is only 3 to 4 percent.
A proposal by India for a South Asian open skies agreement that would remove restrictions on flights operated by state-owned and private airlines from seven countries would be examined by SAARC officials to consider about its implementation. India proposed to open up a South Asia University comprising the educationist and research scholars from the seven countries. India also proposed to establish a South Asia Food Security Store to meet the emergency needs, in case of any food shortage any part of the region.
The seven nations further agreed on a range of joint strategies aimed at combating terrorism, according to the summit declaration formally adopted at the closing session.
The 8-page declaration says the leaders have expressed satisfaction at ratification of the Additional Protocol to the SAARC Convention on Suppression of Terrorism by all the member states. They called for putting in place effective mechanisms for its implementation. The seven nations agreed on a range of joint strategies aimed at combating terrorism.
The summit leaders recognized the years 2006 to 2015 as the SAARC "Decade for Poverty Alleviation.” It was also decided to establish a SAARC Poverty Alleviation Fund to deal with this challenge for the region.
Though there is a South Asian Development Fund (SADF) for supporting the development needs and poverty alleviation, in absence effective rules it could not be utilized properly so far. An amount of US dollar one hundred million already contributed by India for this fund has remained unutilized so far.
The declaration endorsed the recommendation for establishing a SAARC Energy Centre in Islamabad, Pakistan to promote development of energy resources including hydropower, energy trade in the region, and renewable and alternative energy, and also to upgrade Energy efficiency and conservation in the region.
On South Asia's environmental challenges and natural disasters, the leaders decided to consider the modalities for having a Regional Environment Treaty in furthering environmental cooperation among the SAARC members.
They also approved the recommendation for expanding regional programs and projects on early warning, preparedness and management of tsunami and other natural disasters. The leaders also called for elaboration of a Comprehensive Framework on Early Warning and Disaster Management.
The seven heads of state and government underscored the urgency to put in place a permanent regional response mechanism dedicated to disaster preparedness, emergency relief and rehabilitation to ensure immediate response. They directed the national authorities concerned to coordinate their activities in areas of disaster management such as early warning, exchange of information, training and sharing of experiences and best practices in emergency relief efforts.
The leaders reiterated their pledge to continue working in the next decade and beyond to address the formidable challenges faced by women and children, especially the girls. They also reaffirmed their strong resolve to continue working together to address the problems posed by trafficking in women and children.
The summit leaders directed for taking concrete measures to enforce the provisions of the Regional Convention on Narcotic Drugs and Psychotropic Substances through an appropriate regional mechanism.
The SAARC member states also signed three major agreements on the avoidance of double taxation, liberalization of visa regime and establishment of a SAARC arbitration council.
Member states accepted in principle that the SAARC secretariat should be expanded and taken beyond its current role of a transit facility.
The region is also endowed with immense geographical advantages, considerable natural and human resources and a large and vibrant market of middle class consumers.
SAARC Human Resources Development Centre (SHRDC) established in Islamabad, Pakistan in 1999, to be made more and more effective during the coming days.
In the comprehensive charter of combined actions the SAARC leaders also agreed to enhance cooperation in international political and economic environment to address social challenges and threats to environment and natural disasters and also to facilitate People to people contact through tourism.
The spirit of SAARC needs to be sustained by efforts promoting people-to-people contact and by a vibrant civil society throughout South Asia. Travel visa rules may be relaxed gradually for this purpose.
The people of South Asia expect a conflict free and peaceful region, activated with mutual cooperation and development as agreed by the SAARC Summit.
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