South Asia has attracted global attention because it has experienced
rapid GDP growth since 1980, averaging nearly 6 percent per annum.
Yet, it faces many challenges. There are two faces of South Asia.
The first South Asia is dynamic, growing rapidly, highly urbanized, and
is benefiting from global integration. The second South Asia is largely
agricultural, land-locked, exhibits high poverty, suffers from many
conflicts, and is lagging. The divergence between the two faces of South
Asia is on the rise. Many policy and institutional constraints contribute
to this dichotomy. One important constraint is regional conflict that has
made South Asia one of the least integrated regions of the world. While progress
has been made in reducing trade barriers with the rest of the world,
intraregional trade is a mere 5 percent of total official trade as compared
with over 50 percent in East Asia. Capital flows through legal channels
are negligible, transit arrangements are cumbersome and expensive, and
the physical connectivity is limited and restrictive. Additionally, lack of
effective cooperation has constrained progress on a range of public goods
including climate change, water management, HIV/AIDS control and
disaster management.
http://siteresources.worldbank.org/SOUTHASIAEXT/Resources/223546-1192413140459/4281804-1192413178157/4281806-1265938468438/BeyondSAFTAFeb2010FullText.pdf
rapid GDP growth since 1980, averaging nearly 6 percent per annum.
Yet, it faces many challenges. There are two faces of South Asia.
The first South Asia is dynamic, growing rapidly, highly urbanized, and
is benefiting from global integration. The second South Asia is largely
agricultural, land-locked, exhibits high poverty, suffers from many
conflicts, and is lagging. The divergence between the two faces of South
Asia is on the rise. Many policy and institutional constraints contribute
to this dichotomy. One important constraint is regional conflict that has
made South Asia one of the least integrated regions of the world. While progress
has been made in reducing trade barriers with the rest of the world,
intraregional trade is a mere 5 percent of total official trade as compared
with over 50 percent in East Asia. Capital flows through legal channels
are negligible, transit arrangements are cumbersome and expensive, and
the physical connectivity is limited and restrictive. Additionally, lack of
effective cooperation has constrained progress on a range of public goods
including climate change, water management, HIV/AIDS control and
disaster management.
http://siteresources.worldbank.org/SOUTHASIAEXT/Resources/223546-1192413140459/4281804-1192413178157/4281806-1265938468438/BeyondSAFTAFeb2010FullText.pdf
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