The Pakistanis are a hardy people with enough of the talented and well-educated to build a modern nation. But unending strife with India has drained Pakistan's resources and stunted its potential. Since May 1998, when first India and then Pakistan shed the doctrine of nuclear ambiguity, South Asians have been living in the shadow of a nuclear war. The major war began as a Pakistani-inspired guerrilla war in August that escalated into a full-scale war involving armor, air and naval forces in September. Money that could be spent by India and Pakistan on economic development has been diverted on an expensive and dangerous arms race. A very large percentage of Pakistani defense spending is spent on imported arms and equipment, since the domestic production base is limited. Pakistan's performance on socio-demographic indicators is worse than its performance on economic indicators. The chapter also presents an overview of the key concepts discussed in this book.