Current Status SAARC Development Fund (SDF)

SAARC Development Fund (SDF) was inaugurated in 2010 during the 16th SAARC summit at Thimphu. It’s precursor was South Asian Development Fund (SADF), which itself was launched in 1996 by merging two existing facilities called SAARC Fund for Regional Projects (SFRP) and the SAARC Regional Fund.

SDF was created “umbrella financial mechanism” for all SAARC projects and programmes. Its core objective is to accelerate the economic growth, social progress and poverty alleviation in the region. It funds the projects in South Asia region via three windows viz. Social Window, Economic Window and Infrastructure Window. At present, only Social Window is in operation, the other two windows are yet to open.

The Social window currently funds the projects mainly on poverty alleviation, social development focusing on education; health; human resources development; support to venerable/disadvantaged segments of the society; funding needs of communities, micro-enterprises, rural infrastructure development. Some of the key projects taken up by SDF include:

1. SAARC Business Association of Home based workers {SABAH} established in Afghanistan, Bangladesh, Bhutan, Maldives, Nepal, Pakistan and Sri Lanka. These are Civil Society Organizations for promotion of welfare for home based workers and their skill development
2. Establishment of Trade Facilitation Centers established in Bhutan, Nepal Pakistan and Sri Lanka
3. Strengthening Maternal and Child Health Including Immunization
4. Scaling up of Zero Energy Cold Storage (ZECS) technology for the horticultural commodities in the high hills of SAARC countries
5. Empowering Rural Communities “Reaching the Unreached” via establishing Community Centres in various countries.
6. South Asia Initiative to End Violence Against Children (SAIEVAC)
7. Post Harvest Management and Value Addition of Fruits in Production Catchments in SAARC Countries

We note here that SDF currently struggling with lack of finance for the effective implementation of projects. After it was formed, only social window has been activated so far. No such progress has been done towards Infrastructure window which is equally important for region.