Q.(a) Write a note on :

(a) SAARC is an eight-nation South Asian regional cooperation body (formed 1985); BRICS is a five-nation grouping of major emerging economies (Brazil, Russia, India, China, South Africa). (b) Public expenditure has grown due to the welfare state, defence, population growth, urbanisation, development and planning, rising prices and public-debt servicing. (a) Notes (i) SAARC - The South Asian Association for Regional Cooperation was established in 1985 (Dhaka summit). - It has eight member countries: India, Pakistan, Bangladesh, Sri Lanka, Nepal, Bhutan, Maldives and Afghanistan. - Its objectives are to promote the welfare of the people of South Asia, accelerate economic growth and social progress, and strengthen collective self-reliance and cooperation. - Its Secretariat is at Kathmandu, Nepal (established 1987). SAFTA (South Asian Free Trade Area) was set up under it to promote free trade in the region. (ii) BRICS - BRICS is a grouping of five major emerging national economies: Brazil, Russia, India, China and South Africa. (It began as 'BRIC' and South Africa joined in 2010.) - It aims to promote economic cooperation, trade, development and reform of global financial institutions among its members. - It has established the New Development Bank (NDB) and a Contingent Reserve Arrangement (CRA) to finance development projects and provide financial support. - The BRICS nations together account for a large share of the world's population, land area and output. (b) Reasons for the recent growth in Public Expenditure 1. Rise of the welfare state — governments now provide education, health, social security and welfare services, raising expenditure. 2. Defence and security — modern defence, weapons and internal security are very costly. 3. Growth of population — a larger population needs more public services and administration. 4. Urbanisation — growth of towns and cities requires spending on water, sanitation, transport and civic amenities. 5. Economic development and planning — spending on infrastructure, industries, agriculture and development plans has grown. 6. Rising prices (inflation) — higher price …