Page 271 - DMGT401Business Environment

Business Environment

Notes South Asian Association for Regional Cooperation (SAARC)

The South Asian Association for Regional Cooperation was established on December 8, 1985. It
involves seven states of the Indian sub-continent – Bangladesh, Bhutan, India, Maldives, Nepal,
Pakistan and Sri Lanka. The objective of the Association is to promote the welfare of the people
of South Asia and to improve their quality of life through accelerated economic growth, social
progress and cultural development in the region.
The Secretariat of the Association is at Katmandu, Nepal. Summits, which are the highest authority
in SAARC, are to be held annually. The country hosting the Summit holds the Chair of the
Association. The Council of Ministers comprising Foreign Ministers of member nations, meets
at least twice a year. Its functions include formulating policy, reviewing progress of regional
cooperation, identifying new areas of cooperation and establishing additional mechanisms that
may be necessary. The Governors of the Central Banks of Member States under the auspices of
SAARC FINANCE meet regularly to consider cooperation in financial matters.
Beyond official linkages, SAARC also encourages and facilitates cooperation in private sector
through the SAARC Chamber of Commerce and Industry (SCCI), which is a SAARC Apex Body.
Other such bodies are SAARC LAW and the South Asian Federation of Accountants (SAFA). In
addition, professional groups in South Asia have been given status of SAARC Recognized
Bodies. These bodies include: Architects, Management Development Institutions, University
Women, Town Planners, Cardiologists, Dermatologists, Teachers, Writers, Insurance
Organizations, Diploma Engineers, Radiological and Surgical Care Societies.
The SAARC Secretariat is based in Katmandu. It coordinates and monitors implementation of
activities, prepares for and services meetings, and serves as a channel of communication between
the Association and its member states as well as other regional organizations.

AREAS of Cooperation

SAARC seeks cooperation in the following thrust areas:

1. Agriculture and Rural Development
2. Health and Population Activities
3. Women, Youth and Children
4. Environment and Forestry

5. Science and Technology and Meteorology
6. Human Resources Development
7. Transport
8. Information and Communications Technology

9. Biotechnology
10. Intellectual Property Rights
11. Tourism
12. Energy

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