The article analyses how South Asia is dealing with the pandemic and the need for coordinated action by the countries across the region.
Varying response across the region
- Governments in South Asian countries have responded in varying degrees to counter the health and economic crises.
- India resumed its economic activities on a limited scale following a strict lockdown.
- Bangladesh, Nepal, Pakistan and Sri Lanka did the same after an extended lockdown.
- Bhutan and the Maldives have managed to largely contain community transmission and avoid prolonged lockdowns due to a higher testing rate.
- This is consistent with the hypothesis that countries that have conducted more tests have been more successful in containing the pandemic.
Low mortality in the region
- Unlike other regions, South Asian countries are experiencing a lower mortality rate despite having a higher infection rate.
- However, epidemiological studies and the World Health Organization’s reviews have been sceptical about the data reliability.
Effectiveness of state responses
- India, Pakistan, Bangladesh, and the Maldives have unveiled stimulus packages.
- The rest of the countries are yet to announce any concrete support for their low income and lower-middle income population still suffering from the economic fallout of the crisis.
- In late March, India announced a $22.5 billion relief package to ensure food security and cash transfers to save the livelihoods of an estimated 800 million people living in poverty.
- The Reserve Bank of India (RBI) slashed the repo and reverse repo rate to create liquidity for businesses.
- In early April, Bangladesh announced a stimulus package worth about $8 billion in addition to an earlier $595 million incentive package for export-oriented industries.
- Although countries like India and Bangladesh announced financial and material stimulus packages, distribution concerns remain unaddressed.
United response by SAAR
- The region need to look beyond narrow geopolitical rivalry and come together to work towards a well-coordinated response mechanism.
- A SAARC COVID-19 fund was created following Indian Prime Minister Narendra Modi’s call to South Asian leaders.
- Bbut governments are yet to decide on its modus operandi.
- The region could leverage its existing institutional framework under the umbrella of SAARC to effectively respond to the crisis.
- For instance, SAARC Food Banks could be activated to tackle the imminent regional food crisis, and the SAARC Finance Forum can be activated to formulate a regional economic policy response.
Conclusion
Faced with an unprecedented crisis, this is the right time for the leaders of the region to come together and take on the challenge collectively.
