NEW DELHI, 16 September 2007 — With members of South Asian Association of Regional Cooperation (SAARC) displaying inclination to emulate the success of European Union and Association of Southeast Asian Nations, the SAARC finance ministers met here yesterday discussing issues related to proposed SAARC Development Fund, the South Asian Economic Union, South Asian Customs Union and enhancing collaborations between capital market regulators in the region.
At the meeting, urging SAARC countries to quickly begin operation of a $300 million-fund aimed at financing health and education projects, Indian Finance Minister P. Chidambaram said: “I would urge all of you to come to an agreement on the terms of reference so that the fund can be utilized for activities that support the development goals of other countries.”
Referring to the three windows of the proposed fund: economic, social and infrastructure, Chidambaram said: “I would especially commend the social window and urge that the Fund be used for schemes, programs and projects that are aimed at the disadvantaged and vulnerable in our region.” He also said that $300 million would have to come to the fund. Though the ministers agreed to begin this as soon as possible, a timeframe for the fund to actually start operation was not disclosed.
To help integrate regional capital markets and facilitate cross-border transactions within the region, Chidambaram proposed cooperation between capital market regulators of SAARC countries. The intergovernmental expert group on financial issues, which had been mandated, will develop the road map for the SAARC Development Fund, the South Asian Economic Union and the South Asian Customs Union in a gradual and phased manner, he said.
The first step toward an economic union would be hassle-free procedures at the border, Chidambaram said.