By: Darshan Gajjar, Research Analyst, GSDN

The realist school of thought in international relations (IR) considers the international system to be anarchic, where there is an absence of hierarchy and any central authority. As opposed to the realists, there is a liberal school of IR that emphasises the role of order in the international system. One of the liberal theories, liberal institutionalism, believes that cooperation between states by means of institutions is feasible, sustainable, and reduces the potential for conflict between those states.

Such theoretical underpinnings led to the building of numerous alliances across the world, especially after World War II, with the aim of cooperation on multiple issues. Global political cooperation by means of the United Nations in addition to other organisations was at least a norm, if not an established standard. At the economic level, it made lots of sense for countries to collaborate on issues of convergence to remove existing trade issues. The European Coal and Steel Community (ECSC), established by European states, was a great example of how nations can collaborate in order to maximise their economic output.

The Genesis and Objectives of SAARC

Recognising the importance of such a cooperation at the regional level, the South Asian Association for Regional Cooperation (SAARC) was founded in 1985 with the aim of promoting economic and regional integration. Its member states include Afghanistan, Bangladesh, Bhutan, India, the Maldives, Nepal, Pakistan, and Sri Lanka. SAARC’s primary objectives include the promotion of welfare economics, collective self-reliance, and accelerated socio-economic growth within the South Asian region.

SAARC was envisioned as a platform to foster mutual understanding and collaboration among the South Asian nations, many of which share historical, cultural, and economic ties. The primary idea was to create a regional bloc that could leverage its collective strengths to address common challenges such as poverty, illiteracy, and underdevelopment, thereby uplifting the overall standard of living in the region. However, despite its noble objectives and initial promise, SAARC has largely been perceived as a failure in achieving its intended goals.

Key Factors Behind SAARC’s Ineffectiveness

One of the primary reasons for SAARC’s ineffectiveness is the deep-seated political tensions and rivalries among its member states, particularly between India and Pakistan. The contentious relationship between these two nuclear-armed neighbours has often overshadowed the organisation’s agenda, leading to a stalemate on several initiatives. The Kashmir conflict, cross-border terrorism, and historical animosities have consistently hindered any meaningful progress within SAARC. This bilateral tension has frequently resulted in the derailment of summits and the postponement of key decisions. Further, Pakistan’s support of non-state terrorist actors was one of the key reasons while its activities were being opposed by the member states

There also exists a lack of political will among SAARC member states to prioritise regional cooperation. Many member countries have been more focused on pursuing their own domestic agendas and bilateral relations with powerful external actors rather than investing in regional cooperation. Pakistan’s invocation of the Kashmir dispute at each and every multilateral forum, including SAARC is one such example. This lack of commitment has led to a situation where SAARC’s initiatives are often underfunded and poorly implemented.

SAARC’s organisational structure and institutional mechanisms have also contributed to its ineffectiveness. Decision-making within SAARC is based on the principle of unanimity, which means that any member state can veto a proposal. This has often resulted in a paralysis of decision-making, as member states with conflicting interests fail to reach a consensus. Furthermore, SAARC’s secretariat, which is responsible for coordinating and implementing its activities, has been criticised for being understaffed and lacking the necessary resources and authority to drive the organisation’s agenda.

The South Asian region is characterised by significant economic disparities among its member states. India, being the largest and most economically advanced member, has often found it challenging to align its economic priorities with those of its smaller and less developed neighbours. This has resulted in a mismatch of expectations and priorities, further complicating efforts to achieve regional integration. Additionally, divergent economic policies and protectionist measures adopted by some member states have hindered the establishment of a cohesive regional economic framework.

Impact of SAARC’s Failure on India

India, being the largest and most influential member of SAARC, has much at stake in the organisation’s success or failure. The failure of SAARC has several implications for India, ranging from economic and strategic concerns to geopolitical challenges.

For starters, SAARC’s failure to achieve economic integration has limited India’s ability to capitalise on regional trade opportunities. Intra-regional trade within SAARC remains abysmally low compared to other regional blocs such as ASEAN or the European Union. This has prevented India from fully leveraging its economic potential within the South Asian market. Additionally, the absence of a robust regional trade framework has resulted in increased reliance on extra-regional trade partners, such as China, thereby limiting the scope for regional economic synergies.

The failure of SAARC to foster regional cooperation has also impacted India’s strategic and security interests. The lack of a unified regional approach to addressing common security challenges, such as terrorism, has made it difficult for India to build a cohesive security architecture in South Asia. This has allowed external actors to exploit regional divisions and influence the strategic dynamics of the region. Moreover, the persistent political tensions within SAARC have hindered efforts to build confidence and trust among member states, thereby perpetuating a cycle of insecurity and instability.

Further, there are some geopolitical implications of SAARC’s failure that are particularly concerning for India. The inability of SAARC to function effectively has provided an opportunity for China to expand its influence in South Asia through initiatives such as the Belt and Road Initiative (BRI). Several SAARC member states, facing economic challenges and limited regional cooperation, have increasingly turned to China for economic and infrastructural assistance. This growing Chinese presence in India’s immediate neighbourhood has strategic implications, as it could potentially undermine India’s influence and leverage in the region.

India’s Strategic Response

In response to the challenges posed by SAARC’s ineffectiveness, India has adopted a multi-faceted strategy to safeguard its interests and promote regional cooperation. Recognizing the limitations of SAARC, India has increasingly focused on strengthening bilateral relations with individual SAARC member states. This approach has allowed India to pursue its strategic and economic interests without being constrained by the collective decision-making process of SAARC. Additionally, India has actively promoted sub-regional initiatives such as the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) and the Bangladesh-Bhutan-India-Nepal (BBIN) initiative. These platforms provide an alternative framework for regional cooperation and have shown more promise in achieving tangible outcomes.

India has also prioritised enhancing connectivity and infrastructure development within the South Asian region. Projects such as the India-Myanmar-Thailand Trilateral Highway and the development of regional energy grids aim to improve regional connectivity and facilitate economic integration. By investing in infrastructure development, India seeks to create a conducive environment for regional trade and cooperation, thereby offsetting the limitations of SAARC.

In addition to its regional initiatives, India has sought to leverage its partnerships with other regional and global players to promote its strategic interests. Engagement with organisations such as ASEAN and the Shanghai Cooperation Organization (SCO) allows India to pursue regional cooperation on a broader platform. Moreover, India’s strategic partnerships with countries like the United States, Japan, and Australia provide additional avenues for promoting regional stability and addressing security challenges.

Conclusion

The failure of SAARC to achieve its intended goals of regional cooperation and integration is a cause of concern for India. The political tensions, lack of political will, structural challenges, and economic disparities within SAARC have significantly impeded its effectiveness. This has resulted in economic limitations, strategic vulnerabilities, and geopolitical challenges for India. However, India has recognised one point that terror and trade cannot go hand in hand and responded to these challenges by adopting a multi-faceted strategy that includes strengthening bilateral and sub-regional initiatives, enhancing regional connectivity, and leveraging regional and global partnerships. While SAARC’s future remains uncertain, India’s proactive approach provides a pathway for addressing the challenges and promoting regional cooperation in South Asia.