SAARC and Regional Cooperation - Challenges, BIMSTEC Alternative, and Future

SAARC and Regional Cooperation - Challenges, BIMSTEC Alternative, and Future (UPSC Focus)

Regional cooperation in South Asia matters for UPSC because the region is India's immediate strategic neighbourhood: it shapes internal security, trade and connectivity, energy security, migration, disaster management, public health, and India's diplomatic posture under Neighbourhood First and Act East. In this context, SAARC represents the original "all South Asia" multilateral platform, while BIMSTEC represents a newer "Bay of Bengal" platform that is increasingly treated as a practical pathway for cooperation when SAARC is stalled.

1. Why Regional Cooperation is Hard but Necessary in South Asia

South Asia is densely interconnected by geography and people, but remains one of the least economically integrated regions. A key indicator is trade: intra-regional trade is only about 5% of South Asia's total trade, far lower than many other regions.

• Shared geography and risks: Himalayan river systems, monsoons, cyclones, earthquakes, and climate-linked extremes do not respect borders.
• Economic logic: proximity should reduce logistics costs, but non-tariff barriers and weak corridors raise costs and delay supply chains.
• Human linkages: cross-border migration, diasporas, cultural and religious ties create a deep societal basis for cooperation.
• UPSC angle: expect questions linking regional cooperation to India's Neighbourhood First policy, Act East Policy, connectivity projects (BBIN, Kaladan, India-Myanmar-Thailand Trilateral), and broader foreign policy goals.

2. SAARC: Origin, Structure, and Key Instruments

2.1 Origin and Membership

SAARC was established by the signing of its Charter on 8 December 1985 in Dhaka. Its members are Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka (8 member states). The Secretariat is in Kathmandu, Nepal.

2.2 Charter Principle: "Unanimity and No Bilateral Issues"

A defining feature of SAARC is its Charter rule under Article X: decisions at all levels are taken on the basis of unanimity, and bilateral and contentious issues are excluded from deliberations. This design aimed to keep SAARC focused on cooperative development, but in practice it also makes progress vulnerable to vetoes and prevents political disputes from being addressed where they spill into regional work.

2.3 Institutional Structure (UPSC-ready)

• Summit (Heads of State/Government): highest political direction.
• Council of Ministers (Foreign Ministers): policy-making and review.
• Standing Committee (Foreign Secretaries): coordination and monitoring.
• Secretariat (Kathmandu): administrative and program support.

2.4 Key SAARC Instruments and Initiatives (High-yield)

SAFTA (South Asian Free Trade Area): SAFTA was adopted on 6 January 2004 and entered into force on 1 January 2006; the Trade Liberalization Programme commenced from 1 July 2006.

SAARC Social Charter: the SAARC Social Charter was signed at the Twelfth SAARC Summit (Islamabad, January 2004), covering social development priorities such as poverty alleviation and related themes.

SAARC Development Fund (SDF): SDF was officially established and inaugurated on 28 April 2010 at the Sixteenth SAARC Summit (Thimphu, Bhutan) as the umbrella financial institution for SAARC projects.

COVID-19 cooperation (proof that "functional SAARC" can work): SAARC leaders held a video conference on 15 March 2020 to discuss measures to contain COVID-19. A COVID-19 Emergency Fund was proposed with voluntary contributions and India pledged US$ 10 million as an initial contribution.

Prelims Angle

• SAARC: Charter signed 8 Dec 1985, Secretariat in Kathmandu.
• SAARC Charter Article X: unanimity + no bilateral issues.
• SAFTA: adopted 6 Jan 2004, in force 1 Jan 2006.
• SDF: inaugurated 28 Apr 2010 at 16th SAARC Summit.

Mains Angle

• Show balance: SAARC produced agreements and institutions, but "implementation deficit" remains the core problem.
• Use COVID-19 video conference as an example of functional cooperation even when summit-level politics is frozen.

3. Why SAARC Stagnated: Challenges (Analytical, UPSC-ready)

3.1 Political and Security Rivalries

• Trust deficit is deep, and security concerns spill into economic and connectivity initiatives.
• Summit disruption becomes a symbol of dysfunction: the 18th SAARC Summit was held in Kathmandu on 26–27 November 2014.
• The 19th SAARC Summit scheduled in Islamabad on 9–10 November 2016 was postponed after communications from India, Afghanistan, Bhutan and Bangladesh conveying inability to participate.

3.2 Institutional Design Constraints

SAARC's Charter requires unanimity at all levels and excludes bilateral contentious issues. This creates a classic regional dilemma: political disputes cannot be discussed formally, but political disputes still block technical cooperation (connectivity, trade, transit).

3.3 Economic and Connectivity Barriers

• Low intra-regional trade reflects tariffs, non-tariff barriers, weak corridors, and limited supply-chain integration. The World Bank notes intra-regional trade is barely 5% of South Asia's total trade (vs much higher in other regions).
• Connectivity deadlocks become recurring: transport, transit, and cross-border facilitation measures get stuck due to political reservations.

3.4 Asymmetry and Perception Problems

• Asymmetry of size: India's economic and geographic weight produces fear of dominance among smaller neighbours, while India expects reciprocity and tangible outcomes.
• Domestic politics: nationalist narratives and election cycles reduce diplomatic space for compromise.

Prelims Angle

• Know the dates: 18th Summit Kathmandu 26–27 Nov 2014; 19th Summit (Islamabad) scheduled 9–10 Nov 2016 postponed.

Mains Angle

• Use a 4-part structure: political-security, institutional, economic-connectivity, perception-asymmetry.

4. Case Study: From SAARC Deadlock to Sub-Regionalism (BBIN Example)

A high-yield illustration of SAARC's "implementation problem" is the fate of transport connectivity agreements. The Union Cabinet note on BBIN records that India intended to sign a SAARC Motor Vehicles Agreement at the Kathmandu Summit in November 2014, but it could not be signed due to Pakistan's reservations. Consequently, a sub-regional approach was pursued through BBIN.

The BBIN Motor Vehicles Agreement (Bangladesh, Bhutan, India, Nepal) was signed on 15 June 2015.

• UPSC takeaway: When a large multilateral forum is blocked, countries often shift to minilateral/sub-regional arrangements with willing partners.
• Analytical point: This does not "replace" SAARC legally, but it changes the centre of gravity of cooperation.

5. BIMSTEC as an Alternative Platform: Why It Gained Momentum

5.1 What BIMSTEC Covers

BIMSTEC comprises 7 countries of the Bay of Bengal region: Bangladesh, Bhutan, India, Myanmar, Nepal, Sri Lanka, Thailand.

It is described by the BIMSTEC Secretariat as the only regional organisation in the Bay of Bengal, bringing together 5 countries from South Asia and 2 from Southeast Asia.

5.2 Institutional Strengthening: Secretariat and Charter

• BIMSTEC Permanent Secretariat: The Memorandum of Association on establishing the Permanent Secretariat was signed on 4 March 2014 (Third Summit, Nay Pyi Taw), and the Secretariat in Dhaka was inaugurated on 13 September 2014.
• BIMSTEC Charter: Leaders signed and adopted the BIMSTEC Charter during the Fifth Summit on 30 March 2022.

5.3 Priority Sectors (Exam-Ready)

As per the BIMSTEC Secretariat's summit press release, BIMSTEC pursues cooperation in 7 broad sectors: Agriculture & Food Security; Connectivity; Environment & Climate Change; People-to-People Contact; Science, Technology & Innovation; Security; Trade, Investment & Development.

5.4 6th BIMSTEC Summit and "Bangkok Vision 2030"

The BIMSTEC Secretariat press release notes the 6th BIMSTEC Summit was scheduled on 04 April 2025 in Bangkok with the theme "Prosperous, Resilient and Open BIMSTEC" and included the adoption of Bangkok Vision 2030 and steps like signing an Agreement on Maritime Transport Cooperation.

5.5 Why BIMSTEC is Seen as a Practical "Alternative"

• Strategic geography: focuses on the Bay of Bengal, relevant for India's eastern seaboard and North-East connectivity.
• Bridge function: links South Asia with Southeast Asia, aligning with Act East.
• Operational logic: excludes India–Pakistan rivalry by membership design, lowering "veto risk" in day-to-day cooperation.
• Maritime and connectivity focus: transport and maritime cooperation directly support trade and supply chains.

5.6 Limits of BIMSTEC (So the answer stays balanced)

BIMSTEC's promise is high, but its outcomes have often been "incremental". For example, a summit statement from Bhutan notes that the Framework Agreement on BIMSTEC FTA (signed about two decades earlier) has seen little progress and calls for accelerating efforts toward a BIMSTEC Free Trade Area.

• Economic integration gap: trade facilitation and market integration remain incomplete.
• Implementation capacity: projects need financing, harmonised standards, and steady political attention.
• Political instability in the neighbourhood: regional crises can slow meetings and execution even if the platform exists.

Prelims Angle

• BIMSTEC: 7 members; inception June 1997; Secretariat in Dhaka (inaugurated 13 Sept 2014).
• Charter adopted at 5th Summit on 30 March 2022.
• 6th Summit: Bangkok, 4 April 2025; Bangkok Vision 2030.

Mains Angle

• Argue "BIMSTEC is more workable" but add: it is not a full substitute for SAARC because SAARC includes the entire South Asian set and certain issues are pan-South Asia in nature.
• Use "institutional strengthening" points: Secretariat, Charter, Rules of Procedure, vision document, transport agreement.

6. SAARC vs BIMSTEC: Comparison Table (UPSC Quick Revision)

7. The Future: What Can Work (Scenario + Roadmap)

7.1 Scenario 1: "Functional SAARC" Without Waiting for Summits

Even with summit-level paralysis, SAARC can still deliver through technical and issue-based cooperation where political costs are lower. The COVID-19 video conference (March 2020) shows that when the threat is common and immediate, SAARC can become operational.

• Health security: disease surveillance, medicine supply chains, rapid response coordination.
• Disaster management: joint preparedness, early-warning cooperation, resilient infrastructure planning.
• Digital public goods: standards for cross-border payments, e-commerce facilitation, mutual recognition of digital IDs (long-term).

7.2 Scenario 2: BIMSTEC as the Main Vehicle for "Actionable" Regionalism

BIMSTEC's future credibility will depend on implementation: moving from declarations to corridors, harmonised procedures, and trade facilitation. The 6th Summit agenda (Vision 2030, maritime transport cooperation, rules of procedure) indicates an effort to create a clearer roadmap and institutional base.

• Connectivity first: complete and operationalise transport and maritime frameworks; reduce border transaction costs.
• Trade facilitation before full FTA: mutual recognition, standards alignment, digitised customs, logistics parks.
• Maritime cooperation: port linkages, coastal shipping, secure sea lanes, fisheries and blue economy governance.
• Resilience agenda: climate adaptation and disaster response mechanisms as standing arrangements (not ad hoc).

7.3 Scenario 3: Layered Regionalism (SAARC + BIMSTEC + BBIN)

South Asia may evolve into a layered model:

• SAARC for region-wide social and developmental cooperation where possible (education, health, culture, people-to-people).
• BIMSTEC for Bay of Bengal-centric connectivity, maritime cooperation, and bridging with Southeast Asia.
• Sub-regional/minilateral mechanisms like BBIN for implementable transport and trade facilitation (shown by the 15 June 2015 BBIN MVA after SAARC-level deadlock).

Prelims Angle

• BBIN MVA signed 15 June 2015; conceived after SAARC MVA could not be signed in Kathmandu Summit 2014.

Mains Angle

• Write "future" answers as a roadmap: what to do (reforms), how to do (sequencing), why it will work (political economy logic).

8. UPSC PYQs (Direct Relevance)

9. How to Write a Strong UPSC Mains Answer on SAARC/BIMSTEC

9.1 Suggested Structure (150–250 words)

• Intro (1–2 lines): define SAARC/BIMSTEC and why regionalism matters (trade, security, connectivity).
• Body Part A: identify SAARC challenges: unanimity rule, exclusion of bilateral issues, political-security spillover.
• Body Part B: show evidence/illustration: summit postponement (2016), connectivity deadlock leading to BBIN (2015).
• Body Part C: why BIMSTEC is promising: bridge region, Charter (2022), Vision 2030 (2025), sector focus.
• Conclusion: balanced line: BIMSTEC is a practical pathway, but South Asia needs layered cooperation; functional SAARC should not be abandoned where it can deliver.

9.2 High-Value Keywords to Use

• Implementation deficit, trust deficit, unanimity veto, connectivity-first, minilateralism, Bay of Bengal as a growth corridor, rules-based regionalism, people-to-people contact.

10. Conclusion

SAARC remains the most inclusive South Asian platform by membership, but its Charter design (unanimity and exclusion of bilateral issues) combined with persistent regional rivalries has limited its effectiveness. The emerging pattern is pragmatic, layered regionalism: keep SAARC alive for functional cooperation when possible (health, disaster, social development), while using BIMSTEC for Bay of Bengal-centric connectivity and economic cooperation backed by newer institutional tools like the Charter (2022) and Vision 2030 (2025).