MACRO ASPECTS OF POVERTY IN SAARC COUNTRIES

This article provides a comparative macroeconomic analysis of poverty in the member countries of the South Asian Association for Regional Cooperation (SAARC). It examines the scale, depth, and key characteristics of poverty across the region, identifying both common patterns and country-specific variations. The study investigates the principal macroeconomic determinants of poverty, including low rates of economic growth, high inflation, inequitable distribution of income and assets, and the burden of external debt. The research also assesses the effectiveness of the national poverty alleviation strategies pursued by different SAARC governments. The paper argues for a stronger regional approach to poverty reduction, suggesting that enhanced cooperation in trade, investment, and knowledge sharing could significantly bolster national efforts. The analysis concludes that tackling the region's immense poverty challenge requires a combination of sound macroeconomic management at the national level and a more robust framework for regional economic cooperation.

Poverty remains the single most formidable challenge confronting the nations of South Asia. This paper undertakes a comparative analysis of the macroeconomic dimensions of this challenge across the SAARC region. The study begins by presenting a statistical overview of poverty, using various indicators to map its prevalence and severity in each member state. It then moves to a deeper analysis of the structural and macroeconomic factors that perpetuate poverty. This includes an examination of the relationship between GDP growth rates and poverty reduction, highlighting that the pattern of growth is as important as the rate of growth itself. The paper also explores the impact of fiscal and monetary policies, such as government expenditure on social sectors and the effect of inflation on the real income of the poor. A significant part of the analysis is a critique of the prevailing development models and their limited success in making a substantial dent in poverty. In its concluding section, the paper makes a strong case for a regionally coordinated approach to poverty alleviation. It explores potential areas for cooperation under the SAARC framework, such as the creation of a regional food security reserve and joint initiatives to attract foreign investment. The findings underscore that while poverty reduction is primarily a national responsibility, its regional dimension cannot be ignored, and a collaborative strategy is essential for achieving the shared goal of a prosperous South Asia.