SAARC fund to launch social enterprise programme

In news:

Thimpu-based SAARC Development Fund will soon be launching a social enterprise development programme (SEDP) to fund 80 entities annually across eight-member states, including India.

Key notes:

• SAARC fund to launch social enterprise programme in India and 7 other member nations
• SAARC Development Fund (SDF) will soon be launching a social enterprise development programme (SEDP) to fund 80 entities annually across the 8-member states including India.
• SDF is in the process of launching the SEDP as part of its social window.
• The programme will be implemented in all the SAARC member states with the objective of identifying and building social enterprises by using a mix of grants and concessional returnable capital.
• SDF is currently implementing 12 regional projects with more than 70 implementing and lead implementing agencies covering all the member countries under the social window funding.

Related Information

SAARC Development Fund (SDF)

• In 1996, a first funding mechanism was created in SAARC, ‘South Asian Development Fund (SADF), merging the SAARC Fund for Regional Projects (SFRP) and the SAARC Regional Fund.
• A primary reason for establishing SDF was that the existing South Asian Development Fund (SADF) was found to be inadequate i.e. in terms of required quantum of funds and its limited scope of work.
• In 2005, SAARC Financial Experts decided to reconstitute SADF as SAARC Development Fund (SDF).
• SDF was established by the Heads of the eight SAARC member states in April 2010 and its Governing Council comprises finance ministers of these eight countries.
• It is based in Thimphu, Bhutan.

SAARC

• The South Asian Association for Regional Cooperation (SAARC) is the regional intergovernmental organization and geopolitical union of nations in South Asia.
• Its member states (8 countries) include Afghanistan, Bangladesh, Bhutan, India, Nepal, the Maldives, Pakistan and Sri Lanka.
• SAARC was founded in Dhaka on 8th December 1985.
• Its secretariat is based in Kathmandu, Nepal.
• Amjad Hussain B Sial is the current Secretary General of SAARC.

SAARC Apex Bodies-

• SAARC has six Apex Bodies, they are
  (1) SAARC Chamber of Commerce & Industry (SCCI)
  (2) South Asian Association for Regional Cooperation in Law(SAARCLAW)
  (3) South Asian Federation of Accountants (SAFA)
  (4) South Asia Foundation (SAF)
  (5) South Asia Initiative to End Violence Against Children (SAIEVAC)
  (6) Foundation of SAARC Writers and Literature (FOSWAL)

Social enterprise development programme (SEDP):

• The SEDP is being launched as part of its SAARC Development Fund’s social window.
• The programme will be implemented in all the SAARC member states with the objective of identifying and building social enterprises by using a mix of grants and concessional returnable capital.
• The programme intends to fund around 80 enterprises across the 8 SAARC member states annually.

 

Aim of the fund:

• Promote the welfare of the people of SAARC region.
• Improve their quality of life.
• Accelerate economic growth, social progress and poverty alleviation in the region.

 

Background:

A primary reason for establishing SDF was that the existing South Asian Development Fund (SADF) was found to be inadequate i.e. in terms of required quantum of funds and its limited scope of work. The Thirteenth SAARC Summit decided to reconstitute the SADF into SDF to serve as the “umbrella financial mechanism” for all SAARC projects and programmes.

 

Sources: the hindu, Economic Times.