A study of South-Asian Economics
July 18, 2025
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A study of South-Asian Economics

by Archive Manager
Aug 16, 2009, 12:00 am IST
in General
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South Asia is on the move. Alongside the traditional challenges of security and stability, the region is undergoing economic growth and political change. Collectively the South Asian region, comprising of six countries — India, Pakistan, Bangladesh, Sri Lanka, Nepal and Bhutan, has grown at a rate that is higher than the global average. India leads with its impressive growth in the last one-and-a-half decades; so do some of the other countries. The governments of South Asian countries have recognised the impact of the progress they have made and are committed to build upon this through further initiatives. What is unfortunate, however, is that not all constituents of the society have derived the benefits from globalisation and economic growth. South Asia has to deal with these social challenges to strengthen its growth potential. Although India and Bangladesh have managed to reduce their poverty rates, much more resources and attention are needed to overcome this challenge.

This book is a compilation of papers which examine the broad challenges faced by South Asia in the short and medium terms. These papers were written in conjunction with the Third International Conference on South Asia held in Singapore on October 25, 2007. The theme was what the title of the book says. These papers offer an extensive discussion of such challenges in South Asia, including domestic issues in Sri Lanka, Nepal, Bangladesh and Pakistan and South Asia’s external relations with key global players, such as East Asia and the USA.

In Chapter one, C Uday Bhaskar explores, from the Indian perspective, the strategic and security implications of the July 2005 India-US civilian nuclear cooperation agreement. He accepts the tangible gains India derives from the deal which include retention of its nuclear weapons, despite not being a signatory to Non-Proliferation Treaty and access to nuclear technology which is the key to its economic development. However, he argues that it is the intangible and symbolic strategic advantages accruing to India that warrant closer scrutiny.

In the second chapter, Stephen Philip Cohen discusses the US foreign policy towards South Asia and the challenges it faces. In evaluating ties with the US he admits that there has been considerable progress in bilateral ties. He adds, “India remained strategically important for the US since its Independence until its short but vicious border war with China in 1962. The low point came in 1971-72 with India’s intervention in the erstwhile East Pakistan. Nixon did not see eye to eye with Indira Gandhi and neither did Reagan as such with Rajiv Gandhi. A shift occurred in 2005 with Prime Minister Manmohan Singh’s visit to Washington and after signing of the nuclear treaty, it may improve the “US-India relationship along multiple dimensions, including military, economic and technological,” says the author of this paper.

C Raja Mohan discusses South Asia’s engagement with East Asia with a focus on India and non-economic cooperation in Chapter three. He suggests that although East Asia may have had reservations about engaging the South Asian states before, but now it will become increasingly necessary for it to recognise and accept the political and strategic influences emerging from the sub-continent.

In Chapter four, Yang Dali and Zhao Hong discuss the implications of the rise of India from a Chinese perspective. They contend that the historical Chinese notion of India as an inward-looking and insignificant state has changed. Yang and Zhao highlight the many issues of connection between the two Asian giants.

In Chapter five, Lok Raj Boral gives an insight into the domestic politics of Nepal and its challenges. He underlines the importance of inclusion of the Maoists in the process to establish democracy in Nepal.

Farooq Sobhan in Chapter six evaluates the current domestic political issues in Bangladesh and the bearings these have on the outlook of the country. In his view the future stability of the country hinges upon the success of the current caretaker government in implementing wide political reforms in Bangladesh.

In Chapter seven, Sunil Bastian provides an overview of Sri Lanka’s efforts to deal with key developments, like the separatist movement. He advises securing of south-western and western parts of the country due to their strategic contribution to the economy and sheds light on structural issues, like inequality and working conditions for the women and the rural population of Sri Lanka.

Pervaiz Iqbal Cheema highlights the continued threat of terrorism to Pakistan’s stability and growth. He wants Pakistan to continue to be an integral part of the US-led global fight against terrorism as it will help maintain their “symbiotic relationship”, necessary for peace and stability of Pakistan and Southwest Asia.

This book presents very pertinent views of intellectuals, political analysts and economists and must be read to get an understanding of why South Asia needs to reduce poverty among the general population, build good governance and efficient implementation of policies and finally continually upgrade its infrastructure to achieve economic growth.

—MG

(Sage Publications India Pvt Ltd, B1/1-1 Mohan Cooperative Industrial Area, Mathura Road, New Delhi-110044.)

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