SAARC Development Fund facts for kids
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SAARC Development Fund office in Thimphu city, July 2016
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| Abbreviation | SDF |
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| Formation | 28 April 2010 |
| Type | Multilateral Development Institution |
| Legal status | Treaty |
| Purpose | Social and Economic Development |
| Headquarters | Thimphu, Bhutan |
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Region served
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South Asia |
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Membership
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8 countries |
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Chief Drawing Officer
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Sunil Motiwal |
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Main organ
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South Asian Association for Regional Cooperation |
The SAARC Development Fund (SDF) is like a special bank for countries in South Asia. It helps these countries work together and grow. Its main office is in Thimphu, Bhutan. The SDF is also known as the SAARC Development Fund Secretariat For Regional Integration.
Contents
How the SDF Started
The SAARC Development Fund (SDF) began in 2010. It was created by the countries that are part of the South Asian Association for Regional Cooperation (SAARC). SAARC is a group of eight countries in South Asia. These countries are Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka.
What the SDF Does
The SDF works on many different projects and programs. These projects help people and countries in three main ways:
- Social projects: These help improve people's lives, like health or education.
- Economic projects: These help countries grow their economies and create jobs.
- Infrastructure projects: These build important things like roads, bridges, or power plants.
From Old Funds to New
The idea for the SDF started a long time ago. In 1990, during a SAARC meeting in Malé, two smaller funds were suggested. They were called the SAARC Fund for Regional Projects (SFRP) and the SAARC Regional Fund (SRF). Their goal was to find and support projects that would help the whole region.
These two funds later became part of the South Asian Development Fund (SADF). Bhutan helped start the SADF in 1992. The SADF officially began its work in 1996. It had about US$6.4 million to start. This included US$5 million that was set aside for the SFRP.
Creating the SDF
People realized that the SADF needed to be improved. So, in 2005, financial experts met in Dhaka. They suggested changing the SADF into the SAARC Development Fund (SDF).
In 2006, SAARC Finance Ministers met in Islamabad. They agreed on how the SDF would work. They also planned out how to set it up.
The leaders of the SAARC countries signed the official document for the SDF in 2008. This happened during a meeting in Colombo. Finally, the permanent office for the SDF opened in Thimphu on April 28, 2010. This was at the same time as another big SAARC meeting.
SDF's Financial Strength
As of 2018, the SDF had a lot of money to help with projects. It had an authorized capital of $1.5 billion. Its total capital base was $500 million. The SDF has been working to lend out more money for projects. It aims to increase its credit to $300 million in the coming years.
