Though South Asia is economically growing, it is a paradox that close to a billion people in South Asia are still experiencing moderate poverty. Severe socio-economic conditions in South Asia makes its growing Gross Domestic Product (GDP) dubious. Poverty is a major obstacle to both human development in the region and global progress on poverty eradication. One of the major reasons for this underdevelopment in South Asia, is regional prioritization of geopolitics over geoeconomics, particularly the enduring rivalry between India and Pakistan. Given that political rivalries dominate the national objectives, the South Asian countries are blinded to vast economic cooperative opportunities in the region.
Key Points
- Close to 900 million people in South Asia survive on less than 4.20$ a day.
- The economic growth has not translated into equitable human development.
- There are significant systemic problems in the areas of climate, education, and employment.
- South Asian Association for Regional Cooperation (SAARC) remains ineffective majorly due to lack of economic cooperation among the member countries.
- A primary core shift toward geoeconomics is mandatory to achieve peace and prosperity in the region.
The Paradox of Prosperity: Economic Growth vs Human Development
Economic reports celebrate South Asia as a rising economic powerhouse and region continues to report rapid digitalization, industrial expansion, and increasing numbers of people joining the middle class. Even so, there are still hundreds of millions of people living without the most basic human needs: clean and safe drinking water, healthcare, and employment. The divide between economic growth and economic development points to deep structural flaws. Further, climate change, poverty, and food insecurity exist all across the region. A geoeconomics strategy, characterized by regional connectivity and investment in human development, will create economic interdependence, and ensure peace and prosperity in the region.
Structural Failures: Growth Without Equity
While the GDP continues to rise, it still fails to address the issue of inequitable distribution of resources across the region. While there is still a large segment of the population living in the rural and marginalized areas, they lack access to basic necessities of life. With limited health facilities, and low quality of education, there is a high rate of unemployment particularly in youth which is around half of the total population in South Asia. Inequalities are aggravated by the high levels of mistrust and bad governance at the national and regional levels. Closed borders, and inadequate border infrastructural development, the regional countries continue to suffer economically due to lack of connectivity. A greater shift from geopolitics to geoeconomics, with a focus on economic interdependence rather than political antagonism, seems more promising in terms of resource pooling, and poverty alleviation in the South Asian region.
The Missed Opportunity: Why SAARC Needs to Move Beyond The Status Quo?
South Asia’s development challenges are regional in nature, however, the regional cooperation institution, SAARC, is almost completely ineffective. SAARC’s over-stagnation is not due to lack of institutional apparatus or capacity but the main problem is regional focus on geopolitics that overshadow the incentives for economic cooperation. SAARC can be the driving engine for regional connectivity that has all the potential to pull South Asia from the bottom tier of the world’s poorly integrated region to an economically cooperative and prosperous region of the world. SAARC is required to break the status quo to unlock the region’s huge economic potential, transforming fragmented markets into functional forum of connectivity, trade, investment and shared prosperity.
The Global Dimension: Why the World Should Care?
South Asia is very densely populated region and constitutes one-fourth of the world’s population. The region is trapped in poverty which has a direct correlation to global development, migration and interventional security. The inability to reduce poverty is also dangerous to global progress, especially to the attainment of Sustainable Development Goals (SDGs). The international community should diplomatically engage all regional stakeholders to shift their focus from geopolitics to geoeconomics, as connectivity and economic cooperation is the road to achieve economic development in South Asia.
Charting a New Path: Geoeconomics for Peace and Prosperity
To end the vicious cycle of poverty, underdevelopment and geopolitical rivalries, South Asian countries must chart a new path based on regional-centric approach. The regional countries need to make coordinated efforts in a number of areas to achieve inclusive development in South Asia such as: First is investment in the human capital that addresses and ensures quality education, healthcare and vocational training, and effective changes focused on increasing the workforce efficiency and productivity. Second, building of social protection frameworks that involve both public and private sectors to protect marginalized and vulnerable communities particularly in conflict zones from poverty, economic shocks, natural disasters, and other risks through initiatives such as human development interventions, social assistance, social insurance etc. Third, to achieve inclusive and sustainable development, South Asian countries should formulate social policies to support rural development, as well micro-small-medium enterprises that are vital in local economies. Fourth, there is a need to encourage economic cooperation to promote trade, and interconnectedness to open the doors of peace and prosperity in the region. Fifth, it is essential to rejuvenate SAARC, converting it from a setting often stuck by geopolitics into an active forum for economic cooperation. Lastly, aligning national development plans with the SDGs creating a comprehensive framework for the elimination of poverty and keeping human well-being at the heart of the national and regional policy architectures.
To conclude, a geoeconomic vision combining the elements of a genuine peace for mutual benefitting inter-connectivity geared towards shared prosperity and focusing on both economic growth as well as economic development can catalyze lasting peace and prosperity in the South Asian region.
Dr. Muhammad Saeed Uzzaman (Assistant Professor), is currently serving as Head International Relations Department, National University Modern Languages, Rawalpindi, Pakistan. He is the co-author of the book titled “Changing Patterns of Warfare between India and Pakistan: Navigating the Impact of New and Disruptive Technologies”, published by Routledge Taylor and Francis, London. The book is available in around 100 top universities worldwide and prestigious institutions such as the MIT, Princeton, United States Congress Library, the British Library, and the European Union Parliament. He also works as a consultant and have led several projects with International Non-Governmental Organizations (INGOs) and other civil society forums. His expertise is regularly sought after in mainstream media, where he shares his perspective on socio-political topics relevant to both national and international levels.
References:
Blackwill, R. D., & Harris, J. M. (2016). War by Other Means: Geoeconomics and Statecraft. Harvard University Press.
Dash, K. C. (2008). Regionalism in South Asia: Negotiating Cooperation, Institutional Structures. Routledge.
Drèze, J., & Sen, A. (2013). An Uncertain Glory: India and its Contradictions. Princeton University Press.
Kathuria, S. (2018). A Glass Half Full: The Promise of Regional Trade in South Asia. World Bank.
Human Development Report 2024. United Nations Development Programme.
World Bank. (2023). Poverty and equity data portal: South Asia. World Bank.
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