ABSTRACT
Implementation of the IMF-and World Bank-led structural adjustment programme (SAP) reached a peak via adjustment lending loans, extended by these agencies towards developing countries in the early 1980s. In South Asian developing countries this, however, has been behind by almost ten years compared to other regions. The SAP has brought a strong wave of economic reform process to the region. Particularly, the economic reform has been directed towards three major measures: trade liberalization, privatization and attracting foreign direct investment (FDI). In this chapter, all three measures are reviewed separately for each of the four nations of South Asia. It must, however, be emphasized that although these are separate issues, they work closely to make the overall economic reform process a success for developing countries. Therefore, it has been decided to focus on these issues separately in a single chapter.
