ABSTRACT

South Asia remains a critical piece of the global economic and security architecture. Yet it is the least interconnected region in the world and riven by discord. Nuclear-armed India and Pakistan remain in constant conflict and face huge domestic challenges in terms of population growth, poverty, climate change, and insurgencies, even as they remain poised to grow economically. If they manage their domestic needs and tamp down conflicts with their neighbours, they could overcome the opportunity costs of conflict and become regional and global economic powerhouses and the centre of gravity for Asian development.