ISAS Insights

According to the latest assessments by two international development banks – the Asian Development Bank and the World Bank – and by the central banks of the three major countries of the South Asian mainland – Bangladesh, India and Pakistan – the region has lost some of the economic momentum built up over the last few years. This is largely the result of political uncertainty in the three countries. This has persisted in Pakistan for three years but some recent political developments in Bangladesh and India have also affected economic decision-making. The three countries, having undertaken with some success the first phase of economic reforms, now have to start focusing on the second phase. This will need consensus building which, in turn, demands the exercise of a considerable amount of political will.