Business Environment

⌘K
  1. Home
  2. Docs
  3. Business Environment
  4. Global Business Environme...
  5. SAARC

SAARC

The South Asian Association for Regional Cooperation (SAARC) is a regional organization formed to promote cooperation and development among South Asian countries.

Thank you for reading this post, don't forget to subscribe!
  • It was established in 1985 with seven member countries, and later Afghanistan joined in 2007.
  • Current Members: Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, Sri Lanka.

SAARC functions on a set of guiding principles to ensure cooperation, peace, and mutual respect among member nations. The major principles are:

1. Sovereign Equality

All member countries are treated as equal regardless of size, population, or economy.

2. Territorial Integrity and National Independence

Members respect each other’s sovereignty, independence, and territorial boundaries.

3. Mutual Benefit

Cooperation should be based on achieving benefits for all members.

4. Non-Interference

No member country can interfere in the internal affairs of others.

5. Decision by Consensus

All important decisions are taken only when all members agree unanimously.

6. Non-Confrontational Approach

SAARC avoids political and military disputes; it focuses on economic and social cooperation.

7. Focus on Common Issues

SAARC concentrates on areas that are mutually beneficial to all countries, such as poverty reduction, trade, energy, culture, health, and education.


The objectives of SAARC are aimed at improving the welfare and quality of life of the people of South Asia.

1. Promote the Welfare of the People

Enhance the living standards and improve quality of life in the region.

2. Promote Economic Growth

Accelerate social, cultural, and economic development through joint efforts.

3. Strengthen Collective Self-Reliance

Encourage cooperation to reduce dependency on developed countries.

4. Promote Active Collaboration

Support cooperation in agriculture, trade, science and technology, culture, education, health, and environment.

5. Contribute to Global Understanding

Work together in international forums to promote peace, stability, and development.

6. Promote and Strengthen Intra-Regional Trade

Encourage trade activities among member nations through agreements like SAFTA (South Asian Free Trade Area).

7. Reduce Poverty

Implement poverty alleviation programs and regional development projects.


SAARC has a well-defined organizational structure to manage its activities and decision-making processes.

1. Summit (Heads of States or Governments)

  • The highest authority of SAARC
  • Meets every two years
  • Makes major decisions and sets the overall vision

2. Council of Ministers

  • Consists of Foreign Ministers of member countries
  • Meets twice a year
  • Formulates policies, reviews programs, and approves budgets

3. Standing Committee

  • Consists of Foreign Secretaries
  • Prepares agenda, monitors progress, and coordinates cooperation

4. Technical Committees

  • Work on specific areas such as agriculture, health, transport, energy, education, science & technology
  • Implement technical programs and projects

5. Programming Committee

  • Responsible for the financial and administrative aspects
  • Prepares the work program and budget

6. Secretariat

  • Permanent administrative body located in Kathmandu, Nepal
  • Headed by a Secretary-General
  • Coordinates SAARC activities and communications

7. Specialized Regional Centers

Some centers include:

  • SAARC Agriculture Centre (Bangladesh)
  • SAARC Meteorological Research Centre
  • SAARC Cultural Centre (Sri Lanka)
  • SAARC Energy Centre (Pakistan)

SAARC is a significant regional organization formed to promote cooperation, peace, and development in South Asia. Although it faces political challenges, its principles, objectives, and structured mechanisms provide a foundation for regional integration and economic progress.

How can we help?