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| South Asian Association for Regional Cooperation — SAARC- international organization which has great importance both for its members, and all over the world. It was created not long ago, in December 1985. This organization is involved with issues of economic, cultural and technical cooperation. It is not a military - political organization and is not engaged in the solution of controversial regional issues. The work of the SAARC faces several challenges, such as economic cooperation. Countries in the region have different levels of social and economic development, and vary their policies in this area. This is a consequence of events in 1947, when the subcontinent was divided and economic ties were broken. The continent has evolved in isolation and in each of them created their own economic structures. In general, these structures were oriented to the domestic market. This economic picture has been developed on the subcontinent by 1985. It also reduced the share of South Asia in the global division of labor. Countries do not interact with each other in the economic sphere, developed in isolation from each other. Not all countries at first liked the idea of SAARC. The countries neighboring India feared for their economic situation after the creation of SAARC. However, these fears proved unfounded, as more and more time strengthening and developing economic ties within the region. At the 9th SAARC forum (Male, May 1997) discussed the possibility of establishing a South Asia by 2005 a free trade zone. Creating a free trade zone has led to an increase in mutual investment. This is also influenced by an increase in turnover. Without a doubt a credit to the SAARC process of normalizing the situation in South Asia to establish a mechanism holding informal meetings of leaders of countries - participants. Ability to regularly open to dialogue, which is the leaders of participating countries, has beneficial effects on strengthening ties between the two. |
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