The member states of the South Asian Association for Regional Cooperation have set as a target the achievement of an economic union by 2020. Reaching this goal will require greater levels of monetary cooperation. How should this be achieved? Data from South Asia suggest that member states have minor trade linkages and face asymmetrical patterns of shocks. This paper concludes that, absent a clear road map for monetary cooperation, the present process must be structured so as to be harmonized with the level of regional economic integration.

This book analyses the current state and potential of economic and financial integration in South Asia, which has emerged as one of the most dynamic regions of the world. It looks at how regional convergences and cooperation would reinforce ties amongst the diverse economies of South Asia in the changing global economic landscape. Drawing on empirical research, the book looks at the degree of economic and financial integration in South Asia, which according to the World Bank includes the least integrated regions in the world, and explores the fundamental factors that drive integration amongst these countries. It offers important insights into the financial landscape of the region, as well as the dynamics of the interlinkages in the banking system, the stock markets, and the debt markets. The book examines the role of bilateral trade in augmenting regional economic ties, the opportunities for growth these will foster, and the major challenges and roadblocks for the leaders of the region. It also provides an overview of China’s role in South Asia’s financial integration and the interdependence of these economies for economic opportunities, macroeconomic and financial stability, jobs, sustainable growth, and inclusive development. Detailed and insightful, this book will be of great interest to investors and regional policymakers. It will also be of interest to researchers and students of economics, public and foreign policy, finance, international relations, and South Asia studies.

Rapid changes have taken place in the structure of the global economy, and this book looks at how South Asia can take advantage of these changes. The author argues that the developing global economy will be more complex than originally thought, that instead of a bipolar model with two countries, the US and China, at the centre, it will be multipolar with eight centres of economic activity, including India. The book goes on to suggest that in the context of such a model, there should be regional cooperation between India and its immediate neighbouring countries for South Asia to advance as an economic region. It argues that South Asia will need to look at its history, and that changes in attitudes, particularly in India and Pakistan, are necessary. The possible benefits to the region, in terms of increases in the rates of economic growth if the regional approach is adopted, are discussed. The book presents a useful contribution to studies in South Asia, as well as Asian Economics.

This book reflects the crisis of development, the associated crises of state and its impact on regional cooperation in South Asia. The resulting political and social unrest, violence and militarisation of state structures are considered in detail. The contributors to this volume focus on the depth of the crises and articulate alternatives available and sustainable in the South Asian context -- the common heritage, the renewable resource base and the available stock of knowledge which enlarges the range of technological options.