ABSTRACT
This chapter looks at the region as a whole and discusses the major issues it faces. As South Asia emerges as an important actor in world affairs, the region must address the most serious issues that can harm its development and growth. The strategic location of South Asia makes it an area of importance in the world system. Pakistan is almost as much a part of Southwest Asia as it is of South Asia, given its proximity to the Persian Gulf and its border with Iran. Remittances from workers abroad account for the largest single item in Pakistan's foreign exchange earnings. Both India and Pakistan, as nuclear powers, are important players in the diplomacy of nuclear weapons and missile proliferation and nonproliferation. The Commonwealth pattern applied to India has been followed by many of the members of the Commonwealth that have become independent since World War II, including Pakistan, Bangladesh, and Sri Lanka.
