South Asia P. K. Joshi D
espite having made substantial efforts to ensure food availability for the poor, South Asian countries still face
the key challenges of improving food and nutritional security and reducing poverty. On the plus side of the ledger, the region has
improved its position on the International Food Pol- icy Research Institute’s 2014 Global Hunger Index (GHI), with its nutritional outcomes ranking having moved from “alarming” in 2013 to “serious” in 2014 (a rise from 18.2 to 20.7 on the index). India in par- ticular has made significant strides in boosting its nutritional outcomes. Te proportion of the under- nourished population declined from 21.5 percent in 2004–2006 to 17 percent in 2011–2013. Similarly, the prevalence of underweight in children under five years of age also decreased from 43.5 percent in 2004–2005 to 30.7 percent in 2011–2013. Yet South Asia is still home to about one-third of
the world’s poor, ensuring that food and nutritional security remain at the top of the region’s agenda. Among the biggest challenges faced by South Asian countries during 2014 were high food inflation and intense climatic risk. Average food inflation during 2014 ranged between 7 and 9 percent—a rate much higher than general inflation. Te region also expe- rienced delayed monsoons, which led to both floods and droughts that adversely affected food produc- tion. Particularly serious floods in Bangladesh, India, and Pakistan displaced large numbers of people, affecting their livelihood opportunities and decreas- ing food production. Tese twin stressors of high food inflation and climate risk may even work to dampen the ability of countries in the region to pur- sue accelerated economic growth, alleviate poverty, and end hunger. Tis essay summarizes the main country-specific events that occurred in South Asia during 2014 and
concludes with a look at likely developments in 2015 and beyond.
INDIA
Governmental Elections in India A major change in the region in 2014 was the elec- tion of a new government in India. Te 16th general elections for parliament were held April–May, with the National Democratic Alliance, led by the Bhara- tiya Janta Party, defeating the ruling United Demo- cratic Alliance. India is the largest democratic country on the planet; close to 814.5 million people (about 64 percent of the population) were eligible to vote in the election.1 Te key issues were: (1) food infla- tion, (2) “black money” and corruption at high levels of government, (3) youth unemployment, and (4) reforms for inclusive and equitable development. Te biggest outcome of the election was that it brought an end to the coalition era, in place since 1989, that had obstructed the governmental decisionmaking process. Te one-party majority that has resulted may move a long-awaited reform agenda forward. Te elections are also expected to lead to enhanced regional coop- eration in South Asia; the government has already begun developing bilateral relations with neighboring countries with an eye toward building trust through trade and knowledge exchange.
Mainstreaming Financial Inclusion of the Poor Te new government’s reform agenda is also seeking to step up investment, accelerate economic growth, and enhance welfare measures. Goals include reforming labor, insurance, and the financial sector to generate more employment opportunities and enhance financial inclusion for the poor. In terms of financial inclusion, most notable is the new mega program “Pradhan Mantri Jan-Dhan
P. K. Joshi is South Asia director, International Food Policy Research Institute, New Delhi, India. 85
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