The significance of the rejuvenation of SAARC lies in the fact that South Asia has emerged as a key region of economic growth defying the global slowdown and the emerging nations of SAARC can play a very important role in making SAARC a vital part of the Asian century. India, as the largest component of this group of nations, has big responsibility in steering this process. Prime Minister Dr. Manmohan Singh, who is known for his vision and his expertise on global economic developments, has to play a key role in facilitating the process of collaboration of the SAARC members at both regional and bilateral levels. Despite big opportunities, this process of regional integration has been most halting among the SAARC members and this needs a thorough appraisal at the summit.

South Asia has emerged as one of the fastest growing sub regions in the world having attained the high growth rate of eight per cent preceding the global financial crisis. Even in 2010-11, the SAARC member countries attained commendable growth rates on line with the performance of the ASEAN economies. However, the member countries are facing a variety of problems related to both economic and security and this needs to be tackled through joint efforts. Despite holding sixteen summits so far, SAARC has not achieved success to establish itself as an effective body of regional development as compared to other regional bodies like European Union or ASEAN.SAARC nations have large number of poor people and the natural conditions also are vulnerable bringing miseries to millions of people in the region. This requires major disaster management programmes to deal with the crisis. SAARC leadership has no clear programme on this, and excepting giving some financial assistance, other non-affected member countries do very little in helping the disaster affected member country.

“Building Bridges” is the theme of the Maldives summit and it is very apt in the present situation in South Asia when there are lot of problems among the SAARC members. India and Pakistan are traditional rivals and both the Governments are engaged in a long and tortuous process of negotiations and other member countries have virtually no role in the process of bringing confidence building measures. This time also, Indian Prime Minister Dr. Manmohan Singh is supposed to meet the Pakistan Prime Minister to follow up discussions that took place earlier to improve India-Pakistan relations. This will be outside the purview of the summit as the SAARC charter says that bilateral and contentious issues shall be excluded from the deliberations.

SAARC summit offers a big opportunity to focus on taking advantage of the complementaries of the economies of the member nations and then to ensure that effective collaboration in trade and investment takes place for the benefit of the region as a whole. Collaboration in building proper infrastructure for roads, rail and rivers transport, will go a long way in speeding up the process of modernisation and industrialization in the region. Every regional group is talking of proper connectivity within the region and that has to be the prime task of the summit also. The summit members must discuss the possibility of a regional transport and transit treaty that can help leverage South Asia’s position in the global economy.

SAARC nations has to make full use of the potential of the South Asia Trade Agreement (SAFTA). Follow up actions are necessary by reducing the sensitive lists of each country and removing non-tariff barriers. Further, more actions are necessary to take advantage of the full potential of the SAARC agreement on trade in services signed at the Bhutan summit last year. Steps should be taken to facilitate the conclusion of the investment protection agreements between the member countries.

SAARC was formed in 1985 with seven members India, Pakistan, Sri Lanka, Bangladesh, Nepal, Bhutan and Maldives. Afghanistan was added as the eighth member at the14th summit. Australia, China, Iran and the United States hold observer status. China is expanding its influence in the SAARC region and it has applied for a non-permanent SAARC membership. US is also equally interested to expand its influence among the South Asian countries and apart from its economic interest, it has geo political considerations in having close tie ups with the SAARC member nations. There is a competition now between China and USA in expanding ties with the SAARC members.

Placed in this position, India has to tread very carefully while dealing with the issues at the SAARC summit. India certainly will pitch for greater integration of the South Asian economies and close collaboration on security issues but no impression should be given that India wants to steamroll its views. India has to contend with the Chinese pressure on the SAARC nations in terms of expansion of economic ties and participation by the Chinese firms in the infrastructure development of these countries. China is very active in Sri Lanka, Nepal, Bangladesh and certainly in a big way in .Pakistan. India can meet the challenge of China in South Asian region only by equally expanding the areas of economic collaboration. India has to step up its activities in the building up of infrastructure in these countries.

Dr. Manmohan Singh has to ensure that he wins the hearts of the other SAARC members through his focus on development and joint assistance for removing poverty and inequality in the region. India may be a big neighbour but it should have no big brother attitude. India can lead the summit members to chart out a path for speedy regional development. That will be the best way for India to project itself as a large but responsible power in South Asia who cares for others. (IPA Service)