See, Think, Wonder – Economies of South Asia

See, Think, Wonder – Economies in South Asia

See, Think, Wonder – Economies of South Asia

See, Think, Wonder – Economies of South Asia

5

Economic Development: Burdened by Poverty• South Asian

Poverty• India has a growing

middle class, and an upper class

– About 100 million Indians afford modern consumer goods

• More than 300 million Indian citizens are below their country’s poverty line, and Bangladesh is poorer

– Child labor dilemma

Child Labor in India

Geographies of Economic Development

• The Himalayan Countries

• Rugged terrain and isolation in Nepal and Bhutan are a disadvantage

• Bhutan has isolationist stance

• Nepal’s tourism has resulted in environmental degradation

Geographies of Economic Development– Bangladesh

• Poorest country in the region• Heavy reliance on production

of commercial crops (Jute and Rice)

• Environmental degradation has contributed to poverty

• Internationally competitive in textile and clothing manufacturing

– Pakistan• Inherited a reasonably well-

developed urban infrastructure• Agriculture, cotton, textile

industry are important• Less dynamic economy and

less potential for growth• Burdened by high levels of

defense spending

Geographies of Economic Development

• Sri Lanka and the Maldives

• Sri Lanka: second-most highly developed economy in region

– Exports of agricultural products (rubber and tea) and textiles

– Civil war has undercut economic progress

• Maldives is most prosperous country in region, based on GNI

– Small total economy

India’s Modern Economy• India’s Lesser

Developed Areas– India’s economy

dwarfs that of other South Asian countries

– Prosperous west and poorer east

– North India states economies are generally stagnate

– Caste tensions exist in these areas

India’s Modern Economy• India’s Centers of

Economic Growth– Punjab and Haryana are

showcase states of Green Revolution

– Western states are noted for their industrial and financial power

• Many Gujarat merchants and traders were part of Indian diaspora (migration of large numbers of Indians to foreign countries)

• Karnataka’s capital Bangalore is a growing high-tech center

Globalization and India’s Economic Future• South Asia is one of the

world’s least globalized regions– Low foreign trade and low

foreign direct investment– Economy based on private

ownership combined with government control of planning

• Led to low, slow-paced growth

– 1990s: liberalization of the economy, regulations reduced

– Fearful of foreign investors– Future economic policies

remain uncertain

India Rising – One Billion Reasons to Care