Why in the News?
With recent cuts in USAID funding the South Asian Association for Regional Cooperation (SAARC) Development Fund (SDF), with a capital base of $672 million and $1.5 billion in authorized funds, is gaining attention.
About the SAARC Development Fund (SDF):
- The SDF was established in 2010 by SAARC member countries: Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka.
- It focuses on social, economic, and infrastructure development across SAARC countries.
- It has evolved from SAARC Fund for Regional Projects (SFRP) and SAARC Regional Fund (SRF) proposed in 1990.
- In 2005, the SDF was reconstituted as the umbrella financial mechanism for all SAARC projects.
- Finally, it was endorsed in 2006; Charter signed in 2008 during the 15th SAARC Summit in Colombo.
- Its permanent Secretariat opened in Thimphu, Bhutan, in 2010.
Funding Mechanism:
- The SDF has authorized funds of $1.5 billion, with a capital base of $672 million.
- It aims to expand its credit portfolio to $300 million in the coming years.
- Member countries contribute to the SDF’s capital, and the funds are allocated for regional projects based on proposals from member states.
- It operates on a collaborative funding model, with contributions from both the government and development partners.
| [UPSC 2016] The term ‘Regional Comprehensive Economic Partnership’ often appears in the news in the context of the affairs of a group of countries known as:
(a) G20 (b) ASEAN (c) SCO (d) SAARC |
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