The Socio-economic conditions of South Asian Regions



In comparison with other region, although the South Asian states are poor, but the poverty level is not same among the countries. Pakistan and Sri Lanka are the less poor. India also belongs to developing country bloc even Bangladesh is also included in it but Nepal, Bhutan and Maldives are belonging to least developed group. For that reason there prevails some heterogeneity in their attitude towards the donor. It is very difficult for the least developed countries of South Asia to face the pressure of donor in the same way as Pakistan and India do. There role as regards international organisation is also different to some extent. The desire for better living standard and increased national power led the South Asian countries to seek peripheral assistance soon after they achieved independence. All SAARC states are more or less aid reliant. Although it is a commonality among the South Asian states, but it does not help to enhance their regional co-operation. The rationale is that for official aid, private foreign investment from industrialised countries they are the competitors. They are adversely affected by world terms of trade; face somewhat similar balance of payment and balance of trade problems. All have high debt-servicing liability. Although poverty level is not same in all member countries of SAARC but poverty is the main problem of South Asian economy. Alleviation of poverty may be considered as the main motive force behind their launching the South Asian Preferential Trading Arrangement (SAPTA). As many as 47 percent of the world’s poor live in the South Asian region, in terms of income levels. GNP per capita in this region ranges between US$ 180 to US$ 390

It may be pointed out that the free market doctrine now appears to have become the new orthodoxy in all the South Asian countries; even though each country is relevant to  compete with other both in terms of liberalisation of trade and offering attractive packages of incentives for foreign investment, but this attitude is the reflection of their realisation of changing international economic relations. Economic and trade co-operation are the most vital parts of regional co-operation in the present day international relations. The follow of export-import gets affected when economic relations between or among the countries are mostly unequal. The economic relations among the countries are affected as the political relations among the countries are inimical to each other. The adverse political atmosphere do not help to liberalise trade barriers. On the other hand, too much diversity is not congenial for effective economic and trade co-operation among the SAARC countries. Here the co-operation of India and Pakistan is necessary prerequisite for effective economic integration.

The end of cold war has changed the whole scenario of international relationship. It illustrates that economic pre-eminence is very much needed to become a real power. After cold war three economic blocs the United States, the European Community and Japan have emerged. The end of cold war also helped to unite the Europe again. Eastern Europe is no longer exists as a separate socio-economic entity. All these have an impact on North-South relations. Under the new international order the developing countries have been further marginalised. This has significantly affected the countries in South Asia. In this changed circumstances, if the South Asian countries still remain in their old bilateral conflict they will not be able to play any sort of role in global order.

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