South Asia stands out with much low level of financial depth as compared to that at the world level.
Ijaz Saheb
Post liberalization, South Asian nations are also following the same set of economic liberalism as advocated by the World Bank and its associates. You must be aware, I suppose, that the open economy model, though presumed to be development oriented, is highly non-egalitarian as well as extremely inequity oriented in its essence. It divides the societies into income and asset based upper and lower segments.
It is in the nature of capitalism that it bestows the best upon those who have the capacity to derive the fortunes. While it deprives the other ones of what they seem to possess at the point of time. It does not only affect the economy and economic variables but also the society and social parameters. Simultaneously, given the nature of South Asian polity and political economy neo-classical liberalism has deeply influenced the way our states and our governments assume and carry out their roles.
Can you deny the fact that South Asian polity is one of the most vulnerable polity having sub-optimal administrative capacities to deliver on the desired variables. Are not our States emerging as close supporters of globalism and its accompanying consequences, without making provision for adequate safe guards.
And it is in this background that financial inclusion as well as deepening, along with financial sector reforms and autonomy, require massive change in the mechanism and attitude of our governments. A system of efficiency driven, people oriented, and nationally committed governance is the minimum we need. We deserve it as well.
Thanks.
Your question is pregnant with contextual meanings and ambiguities. For me, I think before you move further one might need to even probe the mode of governance in South Asia as opposed to the mode of governance adopted elsewhere in Asia. Based on the socio-economic realities and political dynamics of South Asia, which kind of governance is good enough to deepening the provision of financial services with a wider choice of services geared to all levels of society? Unless the South Asia comes up with the kind of governance that works best for its sub-region, I think its economy might be still open to sugar-coated sermons being preached by the so-called international financial saviours. Why? This is because South-Asia, including some sub-regions in Africa, have been fed with the dummies of World Bank's and IMF's governance approach. In reality, one-size-fit-it-all approach is not a safe haven for a viable economy. When governance issue is settled, it is very certain that financial deepening will follow suit.
These books will give you the searchlight you need to unravel your intended focus:
Umar Kothari and Martin Minogue (ed.) (2000) Development theory and practice: Critical Perspectives.
Adrian Leftwich (2000) States of Development: On the Primacy of Politics in Development
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