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Q.Read the passage given below carefully and answer the questions that follow : The South Asian Association for Regional Co-operation (SAARC) is a major regional initiative by the South Asian states to evolve co-operation through multilateral means. It began in 1985. Unfortunately due to persisting political differences, SAARC has not had much success. SAARC members signed the South Asian Free Trade Agreement (SAFTA) in 2002 which promised the formation of a free trade zone for the whole of South Asia.

(i) Which one of the following South Asian countries is not a founder member of South Asian Association for Regional Co-operation (SAARC) ? (A) Nepal (B) Bhutan (C) Afghanistan (D) Bangladesh
(ii) The external power that affects the South Asian Countries the most is : (A) United States of America (B) Russia (C) France (D) Britain
(iii) The major objective of South Asian Association for Regional Co-operation is – (A) to become a contemporary centre of power in the World. (B) to establish a common currency for the regional organisation for its economic development. (C) to solve all regional conflicts without interference of external powers. (D) to co-operate member states for economic growth, social progress and cultural development through multilateral means.
(iv) Which one of the following is NOT a core objective of South Asian Free Trade Agreement (SAFTA) ? (A) To establish a common currency for SAARC nations. (B) To promote and enhance mutual trade and economic co-operation. (C) To reduce custom duties and non-tariff barriers. (D) To create a free trade area among member states.
CBSECBSE Class XII Board 2026Subjective· 4mImportance★★★★★
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SAARC, launched in 1985, aims to foster regional cooperation in South Asia through multilateral engagement, though political tensions have limited its effectiveness; SAFTA (2004) seeks to create a free trade zone by reducing trade barriers.

South Asia, home to nearly a quarter of humanity, has long grappled with the challenge of turning geographic proximity into genuine cooperation. The South Asian Association for Regional Cooperation emerged in 1985 as an ambitious attempt to build bridges across borders that had been hardened by partition, war, and mutual suspicion. Seven nations came together at the founding: India, Pakistan, Bangladesh, Sri Lanka, Nepal, Bhutan, and the Maldives. Afghanistan joined much later, in 2007, making it the only member state that was not present at SAARC's birth.

The vision was straightforward—pool resources, coordinate policies, and lift the entire region through collective effort in areas ranging from agriculture and health to education and transport. Yet the reality has been far more complicated. Deep-seated political rivalries, particularly between India and Pakistan, have repeatedly stalled progress. Border disputes, terrorism, and mistrust have meant that SAARC summits are often postponed or produce little beyond declarations of intent.

Note

SAARC operates on the principle of unanimity, meaning any single member can effectively veto decisions. This has made consensus extraordinarily difficult when bilateral tensions run high.

Despite these obstacles, member states have tried to carve out areas of practical cooperation. The South Asian Free Trade Agreement, signed in 2004 (not 2002 as sometimes misremembered), represents one such effort. SAFTA's core aim is to dismantle the tariff walls and non-tariff barriers that fragment the region economically, gradually creating a single market where goods and services can move more freely. The agreement does not, however, propose a common currency—that level of integration remains far beyond SAARC's current ambitions or capabilities.

When we consider external influence in South Asia, one power towers above the rest: the United States. American strategic interests, military aid, economic partnerships, and diplomatic pressure have shaped the region's politics for decades, from the Cold War alignments to the post-9/11 focus on Afghanistan and Pakistan. Russia, Britain, and France have roles, but none match the breadth and depth of American engagement. …

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