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's based in Thimphu, Bhutan. Its main job is to help these countries work together and grow, especially in areas like social projects, economy, and building new things.
Contents
How the SDF Started
The SDF was created in 2010 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 that work together. These countries are Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka. The SDF helps these countries by planning and running projects in three main areas: social well-being, economic growth, and building important things like roads or schools.
Early Ideas for a Fund
Before the SDF, there were two other ideas for regional funds. These were called the SAARC Fund for Regional Projects (SFRP) and the SAARC Regional Fund (SRF). These ideas came up in November 1990 at a big meeting called the 5th SAARC Summit in Malé. The goal was to find and carry out projects that would help the whole SAARC region.
These early funds later became part of the South Asian Development Fund (SADF). Bhutan started the SADF idea at the sixth SAARC Summit in 1992.
SADF Begins Operations
The SADF officially started working on June 16-17, 1996. It began with about US$6.4 million. This money included US$5 million that was originally set aside for the SFRP. Member countries contributed this money based on their share.
However, people soon realized that the way SADF was working wasn't good enough. So, in September 2005, financial experts met during the Thirteenth SAARC Summit in Dhaka. They suggested changing the SADF into the SAARC Development Fund (SDF).
SDF Becomes Official
The plan for the SAARC Development Fund (SDF) was approved on July 11, 2006. This happened at the First Meeting of SAARC Finance Ministers in Islamabad. They also agreed on a step-by-step plan to set up the SDF.
Later, on August 3, 2008, the leaders of the SAARC countries signed the official document for the SDF. This was during the Fifteenth SAARC Summit in Colombo. Finally, a permanent office for the SDF was opened in Thimphu on April 28, 2010. This happened at the same time as the Sixteenth SAARC Summit.
SDF's Financial Strength
As of 2018, the SDF has a lot of money to work with. It has an authorized capital of $1.5 billion. Its total capital base is $500 million. The SDF plans to lend out even more money, aiming for $300 million in loans in the next few years.
