TOPIC:

"TREATY OF ENRICHMENT"
In
SAARC

BY
SARATH GOMPA
DEEPTHI KAKARLA
PAUL RUSU

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Table of contents:

Page

1. History and duties of SAARC 3-7

2. Present condition of the SAARC nations 8 - 14

3. Possible future as individual nations 15 - 18

4. The "Treaty of Enrichment" 19

5. Advantages and disadvantages of the "Treaty of Enrichment" 20

6. References 21

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1. HISTORY AND DUTIES OF SAARC

The Foreign Ministers of South Asia, at their first meeting in New Delhi in August 1983, adopted
the Declaration on South Asian Regional Cooperation (SARC) and formally launched the
Integrated Programme of Action (IPA) initially in five agreed areas of cooperation namely,
Agriculture; Rural Development; Telecommunications; Meteorology; and Health and Population
Activities.

The South Asian Association for Regional Cooperation (SAARC) was established when its Charter
was formally adopted on December 8, 1985 by the Heads of State or Government of Bangladesh,
Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka at the First Summit meeting in Dhaka

Afghanistan was admitted as the eighth Member of the SAARC during the Fourteenth Summit held
in New Delhi on 3-4 April 2007.

The SAARC Charter has 10 Articles which deal with the Objectives, Principles, Organization,
Meetings, Secretariat and Financial Arrangements of the SAARC.

Article I
OBJECTIVES:
1. To promote the welfare of the peoples of South Asia and to improve their quality of life
2. To accelerate economic growth, social progress and cultural development in the region and
to provide all individuals the opportunity to live in dignity and to realize their full potential
3. To promote and strengthen collective self-reliance among the countries of South Asia
4. To contribute to mutual trust, understanding and appreciation of one another’s problems
5. To promote active collaboration and mutual assistance in the economic, social, cultural,
technical and scientific fields.
6. To strengthen cooperation with other developing countries
7. To strengthen cooperation among themselves in international forums on matters of common
interests
8. To cooperate with international and regional organizations with similar aims and purposes.

Article II
PRINCIPLES:
1. Cooperation within the framework of the Association is based on respect for the principles
of sovereign equality, territorial integrity, political independence, non-interference in the
internal affairs of other States and mutual benefit
2. Such cooperation is to complement and not to substitute bilateral or multilateral cooperation
and
3. Such cooperation should be consistent with bilateral and multilateral obligations of Member
States.

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Article III
MEETINGS OF THE HEADS OF STATE OR GOVERNMENT
The Heads of State or Government shall meet once a year or more often as and when
considered necessary by the Member States.

Article IV
COUNCIL OF MINISTERS
1. A Council of Ministers consisting of the Foreign Ministers of the Member States shall be
established with the following functions:
a) Formulation of the policies of the ASSOCIATION
b) Review of the progress of cooperation under the ASSOCIATION
c) Decision on new areas of cooperation
d) Establishment of additional mechanism under the ASSOCIATION as deemed necessary.
e) Decision on other matters of general interest to the ASSOCIATION.
2. The Council of Ministers shall meet twice a year. Extraordinary session of the Council
may be held by agreement among the Member States.

Article V
STANDING COMMITTEE
1. The Standing Committee comprising the Foreign Secretaries shall have the following
functions:
a) Overall monitoring and coordination of programme of cooperation
b) Approval of projects and programmes, and the modalities of their financing
c) Determination of inter-sectoral priorities
d) Mobilization of regional and external resources
e) Identification of new areas of cooperation based on appropriate studies.
2. The Standing Committee shall meet as often as deemed necessary.
3. The Standing Committee shall submit periodic reports to the Council of Ministers and make
reference to it as and when necessary for decisions on policy matters.

Article VI
TECHNICAL COMMITTEES
1. Technical Committees comprising representatives of Member States shall be responsible for
the implementation, coordination and monitoring of the programmes in their respective
areas of cooperation.
2. They shall have the following terms of reference:
a) Determination of the potential and the scope of regional cooperation in agreed areas
b) Formulation of programmes and preparation of projects
c) Determination of financial implications of sectoral programmes
d) Formulation of recommendations regarding apportionment of costs
e) Implementation and coordination of sectoral programmes
f) Monitoring of progress in implementation.
3. The Technical Committees shall submit periodic reports to the Standing Committee.

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 4. The Chairmanship of the Technical Committees shall normally rotate among Member States
in alphabetical order every two years.
5. The Technical Committees may, inter-alia, use the following mechanisms and modalities, if
and when considered necessary:
a) Meetings of heads of national technical agencies
b) Meetings of experts in specific fields
c) Contact amongst recognised centres of excellence in the region.

Article VII
ACTION COMMITTEES
The Standing Committee may set up Action Committees comprising Member States
concerned with implementation of projects involving more than two but not all Member states.

Article VIII
SECRETARIAT
There shall be a Secretariat of the ASSOCIATION.

Article IX
FINANCIAL ARRANGEMENTS
1. The contribution of each Member State towards financing of the activities of the
ASSOCIATION shall be voluntary.
2. Each Technical Committee shall make recommendations for the apportionment of costs of
implementing the programmes proposed by it.
3. In case sufficient financial resources cannot be mobilised within the region for funding
activities of the ASSOCIATION, external financing from appropriate sources may be
mobilized with the approval of or by the Standing Committee.

Article X
GENERAL PROVISIONS
1. Decisions at all levels shall be taken on the basis of unanimity.
2. Bilateral and contentious issues shall be excluded from the deliberations.

IN FAITH WHEREOF We Have Set Our Hands And Seals Hereunto. DONE In DHAKA,
BANGLADESH,

On This The Eighth Day Of December Of The Year One Thousand Nine Hundred Eighty Five.

Hussain Muhammad Ershad

PRESIDENT OF THE PEOPLE'S REPUBLIC OF BANGLADESH
Jigme Singye Wangchuk
KING OF BHUTAN
Rajiv Gandhi
PRIME MINISTER OF THE REPUBLIC OF INDIA

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Maumoon Abdul Gayoom
PRESIDENT OF THE REBUPLIC OF MALDIVES
Birendra Bir Bikram Shah Dev
KING OF NEPAL
Muhammad Zia-ul-Haq
PRESIDENT OF THE ISLAMIC REPUBLIC OF PAKISTAN
Junius Richard Jayewardene
PRESIDENT OF DEMOCRATIC SOCIALIST REPUBLIC OF SRI LANKA

SAARC Summits:
List of SAARC Summits
1st SAARC Summit (Dhaka, December 8, 1985)
2nd SAARC Summit (Bangalore, November 17, 1986)
3rd SAARC Summit (Kathmandu, November 4, 1987)
4th SAARC Summit (Islamabad, December 31, 1988)
5th SAARC Summit (Male', November 23, 1990)
6th SAARC Summit (Colombo, December 21, 1991)
7th SAARC Summit (Dhaka, April 11, 1993)
8th SAARC Summit (New Delhi, May 4, 1995)
9th SAARC Summit (Male', May 14, 1997)
10th SAARC Summit (Colombo, July 31, 1998)
11th SAARC Summit (Kathmandu, January 6, 2002)
12th SAARC Summit (Islamabad, January 6, 2004)
13th SAARC Summit (Dhaka, November 13,2005)
14th SAARC Summit(New Delhi, April 3-4,2007)
15th SAARC Summit(Colombo, August 1-3,2008)

OBSERVERS:

Australia
China
European Union
Iran
Japan
Mauritius
Myanmar (Burma)
South Korea
United States Of America

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FUTURE MEMBERSHIP

• The Peoples Republic of China has shown its interest in joining SAARC. While Pakistan
and Bangladesh support China's candidature, India is more reluctant about the prospect of
Chinese membership, while Bhutan does not even have diplomatic relations with China.
However, during the 2005 Dhaka summit, India agreed on granting observer status to the
PRC along with. During the 14th summit, Nepal along with Pakistan and Bangladesh,
announced their support for the membership of China. China seeks greater involvement in
SAARC, however, finds it too early to apply for full membership.

• Indonesia intends to become an observer as well, and is supported by Sri Lanka.

• Iran a state with borders to two SAARC members, has traditionally enjoyed strong cultural,
economic and political relationships with Afghanistan, Pakistan, India and Bangladesh and
has expressed its desire to become a member of the South Asian organization. On 22
February 2005, the Foreign Minister of Iran, Kamal Karrazi, indicated Iran's interest in
joining SAARC by saying that his country could provide the region with "East-West
connectivity". On 3 March 2007, Iran asked to join the SAARC as an observer. SAARC
Secretary-General Lyonpo Chenkyab Dorji responded by saying that Iran's request for
observer status would be taken up during a meeting of ministers of foreign affairs of
SAARC member countries in the 3 April summit in New Delhi.

• Russia intends to become an observer as well, and is supported by India.

• Myanmar has expressed an interest in joining as a full member. If done so, Myanmar will
become the ninth member in the group. India is currently backing Myanmar. Burma’s
military regime officially applied for full SAARC membership in May 2008. However, the
application is still being considered and the government is currently restricted to observer
status.

• South Africa has participated in meetings.

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2. PRESENT CONDITION OF THE SAARC NATIONS

INDIA

A top economist said that India’s government should tap some of the $400 billion it has locked up
in state enterprises to invest in projects to clean up its environment and combat global.

India’s most serious internal security threat comes from Maoist rebels, known as Naxalites, who
have taken over resource-rich areas where state governance is weak. Mr Chidambaram said he was
not asking Naxalites to lay down their arms, but that the government was prepared to talk.
China already have more English speakers than India, a remarkable development, given the
language legacy.

The study “English Next India” estimates that less than five per cent of the Indian population speaks
English. This would mean that by 2010 only about 55 million people in India will be fluent English
speakers. On the other hand there are 20 million new apparent Chinese speakers of English each
year, a figure attributed to new education policies that require English to be a compulsory subject in
China’s primary school.

In addition to that, India’s talent pool may be drying out. With nearly two-thirds of India’s
population under the age of 35, the country has the world’s largest pool of young people, but is
lagging competitively because of a gap in employer expectations and realities.
A recent survey of 150 Indian companies by the Federation of Indian Chambers of Commerce and
Industry and the World Bank revealed that 64 per cent of Indian employers are “somewhat to not-
at-all” satisfied with the quality of engineering graduate skills, which most notably include English
language skills.

India’s billionaires have seen their wealth swell more than their US counterparts in 2009. This is a
further sign that the subcontinent is recovering faster than western economies.
The world’s largest tyre company Michelin, announced that it would invest Rs 40 billion (€580
million) to set up its first Indian manufacturing facility in Chennai, the country’s automotive hub.
The new plant, which will construct radial tyres for trucks and buses, will spread across 290 acres in
the south Indian state of Tamil Nadu. The facility is expected to boost local employment as at least

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1,500 people will be recruited by the time production starts in 2012, the company said.
BHUTAN

Though Bhutan's economy is one of the world's smallest, it has grown rapidly in recent years, by
eight percent in 2005 and 14 percent in 2006. In 2007, Bhutan had the second fastest growing
economy the world, with an annual economic growth rate of 22.4 percent. This was mainly due to
the commissioning of the gigantic Tata hydroelectricity project. As of March 2006, Bhutan's per
capita income was US$1,321.

Bhutan's economy is based on agriculture, forestry, tourism and the sale of hydroelectric power to
India. Agriculture provides the main livelihood for more than 80 percent of the population.

Agrarian practices consist largely of subsistence farming and animal husbandry. Handicrafts,
particularly weaving and the manufacture of religious art for home altars are a small cottage
industry. This, and a lack of access to the sea, has meant that Bhutan has not been able to benefit
from significant trading of its produce. Bhutan does not have any railways, though Indian Railways
plans to link southern Bhutan to its vast network under an agreement signed in January 2005.

Bhutan and India signed a 'free trade' accord in 2008, which additionally allowed Bhutanese imports
and exports from third markets to transit India without Tariffs. The historic trade routes over the
high Himalayas, which connected India toTibet, have been closed since the 1950 military takeover
of Tibet (although smuggling activity still brings Chinese goods into Bhutan).

In a response to accusations in 1987 by a journalist from UK’s Financial Times that the pace of
development in Bhutan was slow, the King said that "Gross National Happiness” is more important
than Gross National Product." This statement appears to have presaged recent findings by western
economic psychologists including 2002 Nobel Laureate Daniel Kahneman, that question the link
between levels of income and happiness. The statement signaled his commitment to building an
economy that is appropriate for Bhutan's culture, based on Buddhist spiritual values, and has served
as a unifying vision for the economy. In a survey in 2005, 45 percent of Bhutanese reported being
very happy, 52 percent reported being happy and only three percent reported not being happy.

Based on this data, the Happy Planet Index estimates that the average level of life satisfaction in
Bhutan is within the top 10 percent of nations worldwide, and certainly higher than other nations

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with similar levels of GDP per capita.
NEPAL

Nepal is among the poorest and least developed countries in the world. In fact Nepal doesn't stand
anywhere to its otherwise developing neighbors such as India, Pakistan and Bangladesh. Thanks to
the Sub-Sahara African countries, it is not considered the poorest economy now. Nevertheless, with
almost 45% of its population living below the poverty line, Nepal has to do much catching before
being termed a Developing Economy.

Agriculture is the mainstay of the economy, providing a livelihood for three-fourths of the
population and accounting for 38% of GDP. Most of the agriculture activities take place in the Tarai
region. The sub-standard equipments and pesticides along with the medieval mode of agriculture
make it a tough affair. The industrial sector is in a dismal condition. Industrial activity mainly
involves the processing of agricultural products including jute, sugarcane, tobacco, and grain. These
things are hardly considered industrial activities by New-school economists.

Due to its long stint with monarchy and feudalism, Nepal has one of the most uneven distributions
of resources and wealth in the Asia.

This has led to the birth of counter initiative movements such as Maoism. Security concerns relating
to the Maoist conflict and counter insurgency initiatives have led to a decrease in tourism, a key
source of foreign exchange. Nepal has considerable scope for exploiting its potential in hydropower
and tourism. These are considered the up coming hot cakes in New-wave economy. Prospects for
foreign trade or investment in other sectors will remain poor, however. There are lots of reasons for
this such as the small size of the economy, technological backwardness, landlocked geographic
location, civil strife and its susceptibility to natural disaster .

BANGLADESH

Despite continuous domestic and international efforts to improve economic and demographic
prospects, Bangladesh remains a developing nation. It percapita income in 2006 was US$1400 ,
compared to the world average of $10,200.

Jute was once the economic engine of the country. Its share of the world export market peaked in

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the second world war and the late 1940s at 80% and even in the early 1970s accounted for 70% of
its export earnings. However, polypropylene products began to substitute for jute products
worldwide and the jute industry started to decline. Bangladesh grows very significant quantities of
rice (chal), tea (Cha) and mustard.

Although two-thirds of Bangladeshis are farmers, more than three quarters of Bangladesh’s export
earnings come from the garment industry, which began attracting foreign investors in the 1980s due
to cheap labour and low conversion cost. In 2002, the industry exported $ 5 billion worth of
products. The industry now employs more than 3 million workers, 90% of whom are women. A
large part of foreign currency earnings also comes from the remittances sent by expatriates living in
other countries.

Obstacles to growth include frequent cyclones and floods, inefficient state-owned enterprises,
mismanaged port facilities, a growth in the labour force that has outpaced jobs, inefficient use of
energy resources (such as natural gas), insufficient power supplies, slow implementation of
economic reforms, political infighting and corruption. According to the World Bank, "among
Bangladesh’s most significant obstacles to growth are poor governance and weak public
institutions."

Despite these hurdles, the country has achieved an average annual growth rate of 5% since 1990,
according to the World Bank. Bangladesh has seen expansion of its middle class, and its consumer
industry has also grown. In December 2005, four years after its report on the emerging "BRIC"
economies (Brazil, Russia, India, and China), Goldman Sachs named Bangladesh one of the "Next
Eleven," along with Egypt, Indonesia, Vietnam and seven other countries. Bangladesh has seen a
dramatic increase in foreign direct investment.

MALDIVES

In ancient times the Maldives were renowned for cowry shells, coir rope, dried tuna fish (Maldive
Fish), ambergris (Maavaharu) and coco de mer (Tavakkaashi). Local and foreign trading ships used
to load these products in Sri Lanka and transport them to other harbors in the Indian Ocean. From
the 2nd century AD the islands were known as the 'Money Isles' by the Arabs who dominated the
Indian ocean trade routes. The Maldives provided enormous quantities of cowry shells, an
international currency of the early ages. The cowry is now the symbol of the Maldives Monetary

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Authority.
The Maldivian Government began an economic reform program in 1989, initially by lifting import
quotas and opening some exports to the private sector. Subsequently, it has liberalized regulations
to allow more foreign investment.

Real GDP growth averaged over 7.5% per year for more than a decade. Today, the Maldives' largest
industry is tourism, accounting for 28% of GDP and more than 60% of the Maldives' foreign
exchange receipts. Fishing is the second leading sector.

In late December 2004, the major tsunami left more than 100 dead, 12,000 displaced, and property
damage exceeding $400 million. As a result of the tsunami, the GDP contracted by about 3.6% in
2005. A rebound in tourism, post-tsunami reconstruction, and development of new resorts helped
the economy recover quickly and showed a 18% increase on 2006. 2007 estimates show the
Maldives enjoy the highest GDP per capita $ 4,600 (2007 est) amongst south Asian countries
excluding rich Persian Gulf countries

SRI LANKA

In Sri Lanka both, the trade and current accounts recorded large deficits due to high oil and
commodity prices. Furthermore, an unsuccessful effort by the government to defend the Sri Lankan
rupee drained Sri Lanka’s exchange reserves, forcing it to turn to the International Monetary Fund
(IMF) in early 2009 for assistance. In early 2009, the effects of the global economic crisis were
evident, with both exports and remittances on the decline.

Furthermore the government has developed a 10-year development framework to boost growth
through a combination of large infrastructure projects. The Rajapaksa government rejects the
privatization of state enterprises, including "strategic" enterprises such as state-owned banks,
airports, and electrical utilities. Instead, it plans to retain ownership and management of these
enterprises and make them profitable.

Sri Lanka also depends on a strong global economy for investment and for expansion of its export
base, and the global slowdown is a major worry. It hopes to diversify export products and
destinations to make use of the Indo-Lanka and Pakistan-Sri Lanka Free Trade Agreements.
In 2008, the service sector growth slowed to 5.6% from over 7% in 2006-2007. Telecom, trading,

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transport, and financial services were the main contributors to growth. Public administration and
defense expenditures increased in recent years due to hostilities, expansion of public sector
employment, and the expenses associated with maintaining a 106-minister cabinet.

There also is a growing information technology sector, especially information technology training
and software development. Agriculture has lost its relative importance to the Sri Lankan economy
in recent decades. It employs 35% of the working population, but accounts for only about 12% of
GDP. Rice, the staple cereal, is cultivated extensively. The plantation sector consists of tea, rubber,
and coconut; in recent years, the tea crop has made significant contributions to export earnings.
Domestic agriculture such as rice and other food crops is expected to improve significantly with the
return of peace to the eastern and northern provinces.

PAKISTAN

Pakistan's economic conditions in the financial year 2008 and the value of Pakistani rupee have
both decreased because of political and economic instability. Pakistan is known to have one of
fastest developing economies in world and its economic conditions point out that the growth rate
has been higher than the global average.

In addition to all that, the economy of Pakistan is facing a political and economical turmoil at
present. After the Mumbai attacks, the country went through a financial crisis also due to
international pressure.

According to present economic conditions of Pakistan, GDP purchasing power parity has been
estimated to be $454.2 billion in fiscal 2008. $160.9 billion was GDP official exchange rate. Real
growth rate to GDP has been at rate of 4.7 percent in 2008. $2,600 has been contributed to per
capita GDP There were 50.58 million workers in Pakistan.

Pakistan economic conditions are also marked by the contribution of various sectors to GDP by
different sectors of national economy. In fiscal 2008 agricultural sector contributed 20.4 percent,
while 26.6 percent came from industrial sector. Service sector offered 53 percent to GDP in 2008.
Pakistan aims to reduce poverty, which is a main concern for the economic department of
government. Focus is also given on betterment of infrastructure. Plans have been made to make
more roads, dams and power generating plants so that people get more job openings and thereby

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help development.
AFGHANISTAN

Afghanistan's economy has grown at a fast pace since the 2001 fall of the Taliban, albeit from a low
base. In 2007, GDP growth exceeded 7%. In 2008, 11.5% GDP growth is expected.

In June 2006, Afghanistan and the International Monetary Fund agreed on a Poverty Reduction and
Growth Facility program for 2006-2009 that focuses on maintaining macroeconomic stability,
boosting growth, and reducing poverty. Afghanistan is also rebuilding its banking infrastructure
through the Afghanistan National Central Bank. The central bank manages $2.8 billion in reserves.
Sixteen banks have been established and more than 171 branches in over twenty provinces with
$1.5 billion of total assets, a fourfold increase in three years.

Afghanistan is endowed with natural resources, including extensive deposits of natural gas,
petroleum, coal, copper, chromites, talc, barites, sulfur, lead, zinc, iron ore, salt, and precious and
semiprecious stones. Unfortunately, ongoing instability in certain areas of the country, remote and
rugged terrain, and an inadequate infrastructure and transportation network have made mining these
resources difficult, and there have been few serious attempts to further explore or exploit them. The
first significant investment in the mining sector is expected to commence in 2008, with the
development of the Aynak copper deposit in east-central Afghanistan. This project tender, awarded
to a Chinese firm and valued at over $2.5 billion, is the largest international investment in
Afghanistan to date. The Ministry of Mines also plans to move forward with oil, gas, and possibly
iron ore tenders in 2009.

In 2001, Afghanistan produced 430 megawatts of electricity. Today the country produces 754
megawatts. International statistics maintained by the World Bank indicate the ratio of gross
domestic product (GDP) growth to electrical production is approximately $1,000 to 300 kwh. The
Afghan Government's current power plan sets a goal to deliver sufficient electricity to meet the
needs of an economic growth rate of 9% per year. Additionally, the Afghan Government anticipates
approximately 90% of urban businesses will have access to electrical power by the end of 2010.
Finally, the plan's objective is to provide access to electricity to 65% of urban and 25% of rural
households by the end of 2010.

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3. FUTURE AS INDIVIDUAL NATIONS

INDIA

By 2015 the US National Intelligence Agency predicts that India will be the unrivalled regional
power with a large military - including naval and nuclear capabilities - and a dynamic and growing
economy.

In addition to that, telecommunication will probably be one of the most important sectors for India
in the next decade. If India is going to keep his increasingly high demand rates for mobile phones it
will be soon placed near China, and overtake the US in this area. Already, VSNL & Reliance’s
FLAG Telecom’s hold the world’s largest backbone telecom networks, (undersea cables & iber
optics handling most of Pacific & Atlantic lines) and this greater domestic clout will lead to greater
buy outs in the saturated markets and bring more technology to India.

Numerous other factors provide India a competitive advantage in the global economy. It has the
largest English-speaking population in the developing world; its education system produces
millions of scientific and technical personnel. India has a growing business-minded middle class
eager to strengthen ties to the outside world, and the large Indian expatriate population provides
strong links to key markets around the world.

BHUTAN

In Bhutan the problems with the Lhotshampa population seem likely to continue into the 21st
century. Unless the Bhutanese government finds an amicable solution to this problem, Lhotshampa
militancy is likely to intensify. Similarly, the security issue of the presence of Assam independence
insurgencies on Bhutanese territory needs to be addressed in order to avoid embittering relations
with militarily powerful India. This point is all the more important due to the ongoing flow of free
trade with India. Bhutan is highly dependent upon developments within India's economy. As a
result, levels of integration with the world economy will closely follow those of India. Planned
membership of the WTO will exacerbate Bhutan's economic openness.

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NEPAL

Another "problem child" in the region is Nepal, because it remains in political turmoil. Nepalese
people in general are frustrated and worried. They had hoped for a peace dividend after the end of
the armed conflict but inflation has now touched double digits. Power outages, scarcity of drinking
water and frequent shutdown strikes are common. The law and order situation, especially in the
southern parts of the country, is very fragile and unemployment is rising.

So far there are no signs of the major parties being able to bury their differences and join hands to
form a unity government. Geo-political realities such as the toughening attitude of India towards the
Maoists should prevent the rebels from leaving the path of peace.

BANGLADESH

There are also some issues in Bangladesh. At the moment Bangladesh is already the most crowded
place on Earth and it will become even more impossibly packed in the next 30 years.
Approximately 20% of its land, it is feared, will be lost to the rising waters brought about by
climate change. Today's 150 million Bangladeshis also have to face cyclones and arsenic-
contaminated water. About half of the population is illiterate and a third live on less than one US
dollar a day.

MALDIVES

There is also a fear that as sea levels rise, island countries such as the Maldives, and some Pacific
territories, will simply be swamped and disappear. Since 80 % of its 1,200 islands are no more than
1m above sea level, within 100 years the Maldives could become uninhabitable. In this way The
Maldives' survival as a sovereign nation is truly at stake. Thus it is no wonder that the Maldives was
the first country to sign up to the Kyoto Protocol, which sets targets for cuts in industrialised
countries' greenhouse gas emissions. Despite those facts policy-makers in the capital of the
Maldives Male are depressingly aware, their ultimate fate lies in the hands of politicians in Delhi,
Beijing, Moscow and Washington.

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SRI LANKA

In Sri Lanka the slowdown in the pace of economic growth over the last two decades, coupled with
the rising costs of the civil war, seriously threatens the economy's ability to meet the challenges and
changing socio-economic needs of its population. With a rapidly ageing population, the need for
more resources to provide health care and income support will exert considerable pressure on the
government's fiscal resources and the tax system during the coming decades. The solutions to most
of the burning problems, and those bound to emerge in the near future, lie in the country's ability to
achieve sustained levels of long-term economic growth. The continuing civil conflict poses the
biggest obstacle to the country's growth prospects. The need for an immediate solution to the 18-
year-old civil war is imperative. Given that Sri Lanka's economy managed to realize an average
growth rate of about five percent during the last decade in spite of severe interruptions caused by
the civil war, lasting peace would undoubtedly bring prosperity to the nation.

PAKISTAN

Pakistan on the other hand is at a crucial point in its history. It is one of the largest countries in the
world, and the second largest Muslim nation after Indonesia. Pakistan has the opportunity to serve
as a role model for other Muslim countries. Thus, Pakistan is at a crossroads.

Down one path, are religious schools known as madrassas teaching the Wahabbi faith, extremists
and terrorist organizations fighting police forces, the army, the government, and a declining
economy. Many Indian government officials also point to training camps in Pakistan-controlled
Kashmir and continued fundraising by extremist groups in Pakistan as obstacles to peace in
Kashmir.

Down the other path, is a return to democracy, a vibrant economy, a rejection of religious
fundamentalism, new schools, and secure control of Pakistan’s nuclear weapons.

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AFGHANISTAN

Finally, there is Afghanistan. After the September 2001 terrorist attacks on the United States, the
U.S. military action initiated on Afghanistan resulted in the Taliban being stripped of their territory
and power, but Afghanistan's future remains in serious disarray. Negotiations to set up an interim
government began in Germany in November 2001, and while the participants claimed a desire for
peace and a new beginning, Afghanistan's legacy of war and destruction certainly leaves the success
of such platitudes open to doubt. Once the U.S.-led military action ends, an international
peacekeeping presence will certainly be required to prevent further bloodshed. Given the volatile
nature of the country and region, the international community will be called upon to help rebuild
Afghanistan and protect the fledgling government that comes out of this latest conflict. Any sort of
normalized economic relations are likely several years away.

The United Nations has recognized the need for massive humanitarian intervention in Afghanistan
in order to prevent famine in the drought-stricken parts of the country in which 8 to 12 million
people live. Of these people, 1.6 million faced starvation in January 2001. The UN made
arrangements for weekly humanitarian flights to Kandahar with supplies and there was a project
underway to fly extremely sick children to Germany for treatment. Many non-governmental
organizations are calling for increased awareness and urgent action on the part of the international
community.

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4. THE "TREATY OF ENRICHMENT"

The "Treaty of Enrichment" is just an example for a new possible treaty, with the aim of enrichment
and improvement of SAARC.

SAARC started with 7 member nations and in the year 2007 Afghanistan joined the cooperation. In
addition to that it consists of 9 countries of observers and 6 countries are seeking for a full
memberships in SAARC in the near future. In this way SAARC might need some changes or new
aspects to be include in it.

These are some major points in this "Treaty of Enrichment":

1. No more wars between these nations: Working on peace.

2. Improvement of the current agriculture policy.
3. Removal of custom duties on imported goods from each other, allowing free cross-Border
Trade.
4. Start working on the introduction of a common currency.
5. Regional development fund policy.
6. Creation of a common market.
7. Introduction of common passports.
8. Introduction of a waste management policy.
9. Control of movement of military forces around Glacier Mountains.
10. Establishment of new universities in all SAARC countries for all SAARC country students.
11. Creation of new security department in common for these nations to control crime.
12. Development of a common policy on environmental issues.

The first and also main thing the members of SAARC need to work on, is the stopping of wars
among each other and the signing of a peace treaty between all member states of the cooperation.
This is the only way for them, if they want to precede any successful relation together. In addition
to that the new created Peace can serve as a basis for opening the boarders between the countries
and also for any further economical progress in the future.

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5. ADVANTAGES AND DISADVANTAGES OF THE “TREATY OF
ENRICHMENT”

POSSIBLE ADVANTAGES OF THE "TREATY OF ENRICHMENT"

1. The end of wars between these nations.

2. Democracy will flourish in these nations.
3. The creation of the internal trade market more easier than before.
4. Cooperation on continent-code immigration policy.
5. Conflict for Kashmir will come to an end.
6. LTTE (Liberation Tigers of Tamil Eelam) problem in both India and Sri Lanka can be
solved.
7. Cooperation on crime, by having some special police department in common for all these
nations.
8. Free flow of people among the countries.
9. Environment conditions can improve, due to no war.
10. These nations can have common passport.
11. Tourism can develop.
12. Countries like India, Pakistan, Sri Lanka, and Nepal can solve their internal problems like
naxalism, terrorism, LTTE etc.
13. If they are having a common currency like the European Union, it will strengthen the
currency exchange rate towards other currencies and also maintain stability.
14. Exchanges of students
15. Strong economic growth, compared to other individual nations
16. These nations may become more multilingual than now.

Despite all the arguments mentioned before, there are obviously still some questions left open.

DISADVANTAGES

1. This may weaken cultural defenses in countries.

2. May have some problems like politically in country like India.
3. Some laws need to change in every nation.
4. Reduction of the individual power of nations.
5. This treaty may undermine political legitimacy and connections between rulers and ruled.

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 6. The power of sovereignty will decrease.
6. REFERENCES

www.bharatonline.com/nepal/travel-tips/economy.html dated 22/11/09

www.europenews.dk/en/node/14890 dated 22/11/09

www.independent.co.uk/news/world/europe/50-reasons-to-love-the-european-union-

441137.html dated 22/11/09

www.mongabay.com/reference/country_studies/nepal/ECONOMY.html dated 22/11/09

www.news.bbc.co.uk/2/hi/south_asia/country_profiles/1166511.stm dated 22/11/09

www.news.bbc.co.uk/2/hi/science/nature/8130130.stm dated 22/11/09

www.news.bbc.co.uk/2/hi/south_asia/7347227.stm dated 22/11/09

www.reuters.com/article/newsOne/idUSTRE56I0FQ20090719 dated 22/11/09

www.saarc-sec.org / dated 21/11/09, 22/11/09

www.saarctourism.org dated 21/11/09

www.theodora.com/.../pakistan/pakistan_economy.html dated 22/11/09

www.time.com/time/world/article/0,8599,1857953,00.html dated 22/11/09

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