The five areas of regional cooperation in the SAARC region:
(a) SAARC development fund: Its main objectives is to improve the quality of life and to accelerate economic growth, social progress and poverty’ alleviation in the member countries.
(b) Economic cooperation: The agreement on SAARC Preferential Trading arrangement was signed in 1993 and four rounds of trade negotiations have been concluded. With the objective of moving towards a South Asian Economic Union, the Agreement on South Asia Free Trade Area was signed in 2004. It also promotes for the creation of Export Promotion Zones and Special Economic Zones in each SAARC member country to enhance investment.
(c) People to people contacts: In order to achieve a people to people contacts, number of initiatives have been taken. It promotes to strengthen the cooperation in information and media related fields.
(d) Educational cooperation: India proposed for the creation of South Asian University to provide world class educational facilities to the students and researchers in the 13th SAARC summit.
(e) Terrorism: All the member countries of SAARC unanimously agreed to combat against terrorism which is the most and biggest challenge to the successful working of the democracy.
