Answer:
(a) Establishment and objectives: SAARC was established on 8 December 1985 at Dhaka by India, Pakistan, Bangladesh, Sri Lanka, Nepal, Bhutan and the Maldives; Afghanistan joined in 2007. Its secretariat is at Kathmandu. Its objectives are to promote the welfare of the people of South Asia, speed up economic growth, social progress and cultural development, strengthen collective self-reliance and mutual trust, and co-operate in agriculture, health, education, science and technology. Bilateral and disputed issues are kept out of its discussions.
(b) Challenges for SAARC: Political tension, especially between India and Pakistan (Kashmir, terrorism), has blocked its work and summits have been postponed. Other challenges are poverty, illiteracy and population growth, terrorism, border and water disputes, low trade among members, and mistrust of the bigger member India by smaller countries.
(c) Success of SAARC: It has provided a common platform for South Asian leaders to meet. It signed the South Asian Preferential Trading Arrangement (SAPTA, 1993) and the South Asian Free Trade Area (SAFTA, 2004) agreements, set up a SAARC Food Bank, the South Asian University at New Delhi and agreements on fighting terrorism and drug trafficking, and promoted co-operation in health, culture and sports (South Asian Games).