Comprehension
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.
Question: 1

Which one of the following South Asian countries is not a founder member of South Asian Association for Regional Co-operation (SAARC)?

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To remember the 8 members of SAARC, think of the acronym MBBS PAIN: Maldives, Bhutan, Bangladesh, Sri Lanka, Pakistan, Afghanistan, India, and Nepal. Note that Afghanistan (A) was the only non-founding member added later (2007).
  • Nepal
  • Bhutan
  • Afghanistan
  • Bangladesh
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The Correct Option is C

Solution and Explanation

Step 1: Understanding SAARC Foundation:
The South Asian Association for Regional Cooperation (SAARC) was established on December 8, 1985, with the signing of the SAARC Charter in Dhaka. Its founding members were seven countries of the South Asian region: Bangladesh, Bhutan, India, the Maldives, Nepal, Pakistan, and Sri Lanka.

Step 2: Identifying the Status of Afghanistan:

Afghanistan was not a founding member. It expressed interest in joining the association and was formally admitted as the eighth member of SAARC during the $14^{\text{th}}$ Annual Summit held in New Delhi, India, in April 2007.

Step 3: Evaluating the Options:

Based on historical facts, Nepal, Bhutan, and Bangladesh are founding members of SAARC, whereas Afghanistan joined 22 years after its establishment. Therefore, Option (C) is the correct answer.
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Question: 2

The external power that affects the South Asian Countries the most is:

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When analyzing external forces in South Asian politics, think of the Cold War legacy and military aid. The USA's active role as a security guarantor, major trade partner, and economic donor makes it the most influential external superpower in the subcontinent.
  • United States of America
  • Russia
  • France
  • Britain
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The Correct Option is A

Solution and Explanation

Step 1: Analyzing External Geopolitical Interests in South Asia:
South Asia represents a highly sensitive geopolitical zone due to its strategic position, dense population, and historical conflicts (specifically Indo-Pak rivalries). Consequently, major external global powers have maintained an active presence in the region to protect their strategic and economic interests.

Step 2: Assessing the Influence of the United States:

The United States of America (USA) has historically had a deep impact on South Asian dynamics. During the Cold War, the US entered into strategic military alliances with Pakistan (Cento/Seato), while post-1990, it shifted to forging a strong strategic and economic partnership with India. Additionally, the US has acted as a mediator during key military crises (such as the Kargil Conflict of 1999) to prevent nuclear escalation. Thus, the USA remains the most prominent external actor affecting regional policy.

Step 3: Comparing with Other Options:

While China (not listed in the options) is also a dominant regional actor, among the choices provided (USA, Russia, France, Britain), the United States has the most comprehensive, direct military, economic, and diplomatic leverage in the modern affairs of South Asia. Therefore, Option (A) is correct.
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Question: 3

The major objective of South Asian Association for Regional Co-operation is:

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Remember that SAARC is primarily an intergovernmental platform for socio-economic cooperation, not a political union. Due to political disputes, it focuses heavily on non-political fields like agriculture, trade, and cultural exchanges.
  • to become a contemporary centre of power in the World.
  • to establish a common currency for the regional organisation for its economic development.
  • to solve all regional conflicts without interference of external powers.
  • to co-operate member states for economic growth, social progress and cultural development through multilateral means.
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The Correct Option is D

Solution and Explanation

Step 1: Identifying the Constitutional Mandate of SAARC:
As per Article I of the SAARC Charter, the association was established to promote the welfare of the people of South Asia, improve their quality of life, and accelerate economic growth, social progress, and cultural development in the region.

Step 2: Evaluating the Practical Challenges of SAARC:

Unlike the European Union (EU), which has supranational integration ambitions, SAARC operates strictly on an intergovernmental consensus model. It has explicitly avoided establishing a common currency (Option B) or asserting itself as a military power bloc (Option A). Furthermore, bilateral conflicts are explicitly barred from formal discussions, preventing SAARC from directly resolving core conflicts like Kashmir (Option C).

Step 3: Confirming the Primary Objective:

SAARC's core operational strategy is to provide a platform for multilateral cooperation in non-controversial sectors such as agriculture, rural development, science, technology, and culture, aiming to foster collective self-reliance. This directly corresponds to Option (D).
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Question: 4

Which one of the following is NOT a core objective of South Asian Free Trade Agreement (SAFTA)?

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Unlike the European Union, which developed a highly integrated single market and a common currency (Euro), South Asian integration through SAFTA is limited strictly to reducing tariffs and barriers to trade, retaining separate national monetary systems and currencies.
  • To establish a common currency for SAARC nations.
  • To promote and enhance mutual trade and economic co-operation.
  • To reduce custom duties and non-tariff barriers.
  • To create a free trade area among member states.
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The Correct Option is A

Solution and Explanation

Step 1: Analyzing the Scope of SAFTA (2004):
Signed at the $12^{\text{th}}$ SAARC Summit in Islamabad in January 2004 (and entering into force in January 2006), SAFTA was designed to foster trade liberalization by establishing a free-trade zone across the entire South Asian region.

Step 2: Identifying Core Components of the Agreement:

SAFTA aims to:
• Create a free trade area (Option D) to boost regional commerce.
• Reduce customs duties, tariffs, and non-tariff barriers (Option C) to lower the cost of intra-regional trade.
• Promote mutual economic cooperation and fair competition (Option B) to build regional integration.

Step 3: Pinpointing the Non-Objective:

SAFTA is purely a trade liberalization treaty. It does not contain any provisions or plans to integrate monetary policies or establish a single common currency (like the Euro in the Eurozone). Therefore, Option (A) is NOT an objective of SAFTA and is the correct choice.
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