International Relations and Regional Cooperation in South Asia: Challenges, Opportunities, and Policy Directions

Abstract

South Asia possesses substantial economic, demographic, cultural, and strategic importance, yet it remains one of the least institutionally integrated regions of the world. Despite geographical proximity, shared historical experiences, interconnected river systems, common environmental vulnerabilities, and considerable opportunities for trade, regional cooperation has repeatedly been constrained by interstate disputes, security competition, political mistrust, weak institutional structures, and domestic instability. This article examines the relationship between international relations and regional cooperation in South Asia, with particular attention to the South Asian Association for Regional Cooperation, the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation, bilateral arrangements, and emerging subregional initiatives. It applies insights from realism, liberal institutionalism, constructivism, and regional security complex theory to explain why cooperation has remained limited despite strong functional incentives.The analysis finds that India–Pakistan rivalry, asymmetrical power relations, restrictive trade policies, insufficient physical connectivity, securitization of economic relations, and weak implementation mechanisms have prevented South Asian states from transforming geographical proximity into shared prosperity. Intra-regional trade accounts for only about five percent of South Asia’s total trade, while inadequate transport systems, protective tariffs, non-tariff barriers, investment restrictions, and a persistent trust deficit further limit economic exchange. Nevertheless, cooperation in energy, climate adaptation, public health, disaster management, digital connectivity, education, tourism, and cross-border commerce provides realistic opportunities for gradual regional integration.