Economies of South Asia

Economies in South Asia

HIGH POINTS/LOW POINTS

• High Points: sizable & growing middle class with some in the upper class accumulating great wealth; world-class scientific & technological accomplishments; high-tech industries are an integral part of the global economy.

• Low Points: many social groups are cut off from the process of development; very high illiteracy rates; large & growing populations threatens resource base…

4

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 & has gone to a different measure of success (“GNH”)

• Nepal’s tourism has brought in $$ BUT also 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 & threat of Islamic extremism.

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 per capita GDP…BUT…

– 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

• Indian diaspora (migration of large numbers of Indians to foreign countries)

• Bangalore is a growing high-tech center

• 1990s: liberalization of the economy, regulations reduced

India Rising – One Billion Reasons to Care

SOCIAL DEVELOPMENT: India vs. Pakistan

• Life Expectancy: About even at 60 for males & 61 for females;

• Under Age 5 Mortality: India is doing better (90) than Pakistan (126);

• Illiteracy Rate: India better BUT neither are good! India = 34% male & 62% female; Pakistan = 45% male & 71% female!

• Female Labor force: India 32%; Pakistan 28%

*Remember the presence of Islamic Fundamentalism impacts Pakistan’s stats where females are concerned…

Social Development ….

• SRI LANKA: according to your text, “Sri Lanka must be considered one of the world’s great success stories of social development.” Why?

• They have achieved significant health & educational gains DESPITE a lackluster economy & political instability! HOW?

• The Government funds universal primary education & healthcare. They have a well-educated, relatively healthy, slow growing population. This should help them to grow their economy if they can achieve & maintain political stability.