Understanding how e-commerce platforms are affecting the small, informal firms that sell on them is a question of growing importance to researchers and policymakers in developing countries. This paper examines this question using data from surveys of firms selling on two e-commerce platforms in South Asia. The businesses selling on these platforms range widely in terms of size, degree of formalization, and other characteristics. Their main reason for joining the platforms is to access more customers. After joining, many sellers report (i) an expansion of their business, (ii) an increase in their incentive to formal registration, and (iii) increased visibility to tax authorities. Other less-widespread channels of impact include (i) the adoption of new or improved business practices and technologies, (ii) better access to finance, and (iii) greater flexibility in balancing home and work life. These reported impacts do not vary significantly by firm size or registration status, suggesting that the greater market access brought about by (selectively) joining e-commerce platforms benefits equally large and small (informal) firms. Given size and age, firms selling on the platform for a longer period are more likely to experience these impacts, suggesting that firms learn how to use the platform more effectively over time. Finally, firms on these platforms—even the micro and small ones, which tend to be informal—are from a select group, as they are owned and managed by individuals who are more educated and younger than the owners and managers of more typical firms in this setting.
The South Asia subcontinent is witnessing new security and political dynamics after the United States withdrew its troops in mid-2021. Even as the Taliban-led government is stepping up engagement with the outside world to earn wider diplomatic recognition and exhibit its governing credentials, Beijing and New Delhi are adjusting their regional policies in a bid to acquire more influence in a changing geopolitical landscape. Assuming nation states to be rational actors, this paper uses the stag hunt game to analyze the potential maximum payoffs for Beijing, Kabul, and New Delhi, respectively, if they could make the right strategic calculations about their short-term interests and long-term goals. Even though the subcontinent is not immune to the effect of great power rivalry that is unfolding on the world stage, regional stakeholders could still choose to cooperate on issues of common concern while limiting the fallout of competition and confrontation on other more contentious challenges.
China’s emergence as a key player in global politics and the declining role of the United States as a superpower are two greatest developments of the 21st century. This geopolitical transformation has compelled Washington to reconsider its traditional Eurocentric and Middle East-focused approach and shift strategic attention and resources to the Asia-Pacific region. In a bid to keep its superpower status, the United States is bolstering India as a bulwark against China. To balance China’s growing influence, the United States has upgraded ties with India and other major players on China’s periphery. The U.S-India strategic partnership is among the most visible result of these efforts. At the same time, this strategic realignment has serious consequences for regional stability in South Asia. India’s military buildup rattles neighbors, particularly Pakistan, as it increases the risk of confrontation between the two nuclear-armed states. This changing strategic environment leaves Pakistan with no option but to look for new ways to maintain strategic equilibrium. This study provides an overview of the India-U.S. partnership and its impact on South Asian strategic stability. It also highlights various challenges Pakistan will likely face due to regional realignment and discusses possible options for Pakistan to maintain a favorable strategic equilibrium.
The number of global COVID19 cases has just exceeded 15 million, and there is mounting evidence for a devastating economic impact from this illness. Although COVID19 affected primarily China, Europe, and North America during the first half of 2020, now this disease is accelerating in the resource-poor nations of the Global South. Across Latin America, South Asia, and Africa, COVID19 is expected to push up to 100 million people into extreme poverty, eroding many of the economic gains achieved over the last five years. COVID19 vaccines will be required to help control the pandemic, especially in low- and middle-income nations. These will have important health benefits, but might also prevent further economic devastation. The term “antipoverty vaccines” has been used to refer to vaccines to prevent neglected tropical diseases that affect worker productivity, child development, and the health of girls and women. COVID19 vaccines could also become important antipoverty technologies provided we find ways to scale and distribute them as affordable vaccines. Two vaccines now being accelerated for global health include whole inactivated virus and recombinant protein vaccines. These might become essential tools for combating global poverty.
South Asia is a geo-political system which has its unique security characters. The emerging complex nature of a system could lead either to the security or insecurity of that system. India and Pakistan are the emerging nuclear powers of South Asia. The nuclear doctrines and behavior of India and Pakistan promote the advancement of their nuclear programs in both strategic and civil domains. Both countries desire stability, the balance of power and security through the possession of nuclear options. However, the author argues that South Asia’s existing nuclear environment and its emerging complexity have produced insecurity and instability in the region at large. This paper is an attempt to identify the complexity of actors and behaviors and their emerging threats to the security of the region. There is also a lack of literature to portray the nuclear risk that the non-nuclear states face in South Asia. This paper tries to fill that gap as well.
The lofty ideals penned by the heads of the South Asian states at the birth of the South Asian Association for Regional Cooperation (SAARC) reflect a vision for promoting mutual trust and understanding in South Asia. But the member states have fallen into the intricate web of power balancing games, fluctuating economic growth and volatile ethnic and religious conditions that has marred the potential gains from regionalism. In such a scenario, while SAARCs snail-like progress continues without any remarkable achievements, there has been a rise of new regional organizations that has not only renewed our attention towards economic liberalization and the benefits accrued from multilateral economic cooperation but has also put into question the fundamentals of regionalism. The paper situates regionalism in acts of cooperation that are not isolated and discrete from each other but rather form a pattern of interconnecting expectations about the future of the alliance and the assumptions on legitimate activities. The paper argues that regionalism is a multi-faceted task and involves political harmony, economic interdependence and common identity as the three pillars. But regionalism in South Asia encourages economic interdependence and proscribes political integration and common values and norms. As a result, the attempts at regionalism in South Asia are conceptually narrow, limited in agenda and inadequate to address the issues of regional peace and security.
South Asia is becoming one of the most fiercely competitive battlegrounds between India and China. Located at the center of South Asia and with its large geographical area, population, and economic size, superior military strength compared to other countries in the region, India has always been the most influential power in the region. But in the past decade, China’s intensified partnership with small countries in South Asia has threatened India’s number one position in the region. It is the challenges posed by China in South Asia, inter alia, that have forced India under Prime Minister Narendra Modi to make various important foreign policy adjustments. To interpret India–China competition in South Asia in aspects of diplomacy, economy, security and defense, the paper uses international relations theories including constructivism, neo-realism (particularly offensive realism) and the balance of threat theory. Although the paper analyzes India–China competition in all three areas of diplomacy, economy and military security, the authors are of the view that, the most fundamental motivation of China and India in this competition is to achieve power and security and not economic objectives. While China’s strategic calculation leans towards its ambitions to gain greater power in the geopolitical order, India’s strategic calculation leans towards ensuring its security. By using qualitative methods and utilizing secondary data including books, treatises, articles and policy briefs…, this paper analyzes the strategic calculations of India and China in South Asia. The paper argues that China’s intention is to emulate and then overtake India in the very region of India’s traditional influence, while India’s strategy is to maintain and strengthen its number one position in the region. Though China’s influence in the region seems to have overwhelmed over India, India with all its internal forces is also hindering China’s penetrating steps into South Asian region.
Taiwan is a major hub of the global supply chains and one of the leading investors not only in China but also in other Southeast Asian markets. Although high trade complementary, bilateral trade between South Asia and Taiwan is only about US$ 9 billion, investment has only picked up recently. The computable general equilibrium (CGE) analysis indicates a substantial economic benefit of bilateral tariffs elimination between Taiwan and its South Asian partners. Taiwan has a substantial comparative advantage in producing high tech manufacturing goods while in South Asian’s main strength is in the resource-based agricultural and light manufacturing sector. Taiwan has been maintained a liberalized trade regime with minimal import tariffs and non-tariff measures (NTM) over the decades. As South Asia is booming, and Taiwan is seeking alternative markets and investments opportunities, it is time to deepen a bilateral economic relationship. South Asia is a market of 1.5 billion people with an emerging middle class along with substantial cheaper labor forces, made an ideal place for investment. A comprehensive economic partnership agreement (CEPA) with a preferential trade and investment agreement would be useful to attract Taiwanese multinationals and seamless trade between South Asia and Taiwan.
Since its launch in 2013, the Belt and Road Initiative (BRI) has attracted frequent commentary and analysis. Much of these discussions have focused on its effectiveness and viability as a large-scale economic as well as geopolitical project. This paper contributes to that discussion by exploring BRI’s impact on regional organizations, specifically in South Asia. Using South Asian Association for Regional Cooperation (SAARC) as a case study, I argue that BRI’s impact on regional organization is inadequately understood. BRI is not a competitor to regional organizations, but its presence in a region creates a priority conundrum for member states i.e., members who join effectively must mainline the BRI into their national interests. By offering transactional functionality, BRI offers member states the opportunity to access immediate tangible benefits like foreign investment and infrastructure development. While states continue to be the members of various international and regional organizations, their commitment and policy priorities inevitably end up aligning with BRI if they choose to sign up. With BRI as a part of their national interest, states inadvertently cede policy autonomy, especially on issues of concern for China. This creates a situation that grants China a voice in organizations where it’s not even a member. This impacts the character and culture of regional organizations creating relevancy and effectiveness concerns.
Due to climate change, the world is experiencing a great transition in how nations pursue, distribute, and utilize resources. However, a more pressing concern posed by climate change is its exacerbation of environmental inequality, which is unevenly burdening economically marginalized countries. Among those in the marginalized group, India and its neighboring countries in the South and Southeast Asian regions have been classified as particularly vulnerable to climate change-induced risks. Focusing on state fragility as a main cause of a country’s climate change vulnerability, this research seeks to examine which configurations of state fragility dimensions contribute to heightened climate vulnerability in the regions through the utilization of fuzzy-set qualitative comparative analysis (fs/QCA). The analysis suggests that when countries exhibit (1) lower levels of fragility in cohesion and social dimensions combined with higher levels of economic, political, and external intervention dimensions of state fragility; or (2) higher levels of cohesion, economic, political, social, and external intervention dimensions, they suffer from a heightened level of climate change vulnerability. In light of the findings, this research proposes that policymakers in India and its neighboring countries implement policies that foster inclusive growth, enhance their democratic governance, and leverage international regional organizations to address vulnerability to climate change.
With the South Asian economy swiftly integrating into global markets, the restaurant industry in India and Bangladesh has thrived, providing a wide range of global cuisines. Along with other foreign restaurants, Japanese restaurants have gained traction in recent years. This paper seeks to delve into the Japanese culinary industry in South Asia, aiming to comprehend the factors influencing consumer choice and formulate an effective market development strategy. Employing the theory of planned behavior (TPB), the study explores the determinants of Indian and Bangladeshi consumers’ intentions to choose Japanese restaurants. Utilizing qualitative research methods, 36 in-depth interviews (IDIs) were conducted, with 20 Indian and 16 Bangladeshi respondents. A semi-structured questionnaire covering demographics, attitudes, subjective norms (SN), perceived behavioral control and other factors including price concern, food authenticity and religion was employed. Analysis of interview transcripts using NVivo 10 software revealed that participants generally had an average economic condition. Notably, religion emerged as a significant factor influencing purchase intentions in Bangladesh, while attitude and perceived behavioral control are the most significant contributors to Indian consumers’ perceptions. Additionally, the study found that both Indian and Bangladeshi consumers’ perceptions were significantly influenced by the authenticity of Japanese cuisine and food prices positively and negatively. The findings offer valuable insights into the Japanese culinary industry promotion in India and Bangladesh.
In a canonical model of collective action, individual contribution to collective action is negatively correlated with group size. Yet, empirical evidence on the group size effect has been mixed, partly due to heterogeneities in group activities. In this paper, we first construct a simple model of collective action with the free rider problem, altruism, public goods, and positive externalities of social networks. We then empirically test the theoretical implications of the group size effect on individual contribution to four different types of collective action, i.e., monetary or nonmonetary contribution to directly or indirectly productive activities. To achieve this, we collect and employ artefactual field experimental data such as public goods and dictator games conducted in southern Sri Lanka under a natural experimental situation where the majority of farmers were relocated to randomly selected communities based on the government lottery. This unique situation enables us to identify the causal effects of community size on collective action. We find that the levels of collective action can be explained by the social preferences of farmers. We also show evidence of free riding by self-interested households with no landholdings. The pattern of collective action, however, differs significantly by mode of activity—collective action that is directly rather than indirectly related to production is less likely to suffer from the free rider problem. Also, monetary contribution is less likely to cause free riding than nonmonetary labor contribution. Unlike labor contributions, monetary contributions involve collection of fees which can be easily tracked and verified, possibly leading to better enforcement of collective action.
This paper explores the methodological differences underlying the construction of the national consumption aggregates that are used to estimate international poverty rates for South Asian countries. The analysis draws on a regional dataset of standardized consumption aggregates to assess the sensitivity of international poverty rates to the items included in the national consumption aggregates. A key feature of the standardized aggregate is that it includes the reported value of housing rent for urban Indian homeowners. Using the standardized consumption aggregates reduces the international poverty rate in South Asia by 1.3 percentage points, impacting the status of about 18.5 million people. Comparing standardized and nonstandardized monetary welfare indicators to other nonmonetary indicators suggests that the latter are more consistent with the standardized consumption aggregates. Overall, the results strongly suggest that harmonizing the construction of welfare measures, particularly the treatment of imputed rent, can meaningfully improve the accuracy of international poverty comparisons.
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