Bridging the Economic Divide

A Comparative Assessment of SDG Inequalities across the SAARC Nations

Abstract

This paper tries to understand the socio-economic and political significance of SAARC countries in regional development. For it assess the performance and achievements of SDGs across member states, focusing on key economic and social indicators. To achieve the objectives, the study relies on secondary data collected from various sources, viz. the World Development Outlook (World Bank, 2024), Regional Economic Outlook Reports, IMF, 2024 and the Sustainable Development Goals Report, 2024. The analysis focuses on selected SDG indicators that capture key aspects of economic and social development. The analysis is divided into three analytical sections. To assess the economic dimensions of SDGs, the study specifically analyzes the economic performance of SAARC nations through sectoral and labour market indicators thereby identifying the structural transformation and economic composition of member economies. The analysis of industrial sector provides a mixed picture across SAARC nations. It reflects the differences in resource endowments, industrial policy, and economic diversification.

A synthesis of the combined sectoral and employment data across SAARC nations reveals a classic pattern of structural transformation. It positions the countries into three broad developmental stages viz. agrarian economies, transitional economies and service-led economies. Afghanistan, Bangladesh, Bhutan, and India represent agrarian economies, characterized by high agricultural employment, elevated levels of informality, and relatively low unemployment the classical hallmarks of early-stage development. Nepal, Pakistan, and Sri Lanka on the other hand represent the transitional economies that are gradually diversifying into industrial and service sectors. The SDGs 1 and 10, covers poverty reduction and inequality and yet again Afghanistan remains the most economically vulnerable, while Maldives and Bhutan have the lowest poverty rates.

The study concludes that the SAARC nations have potentiality and made a significant progress in many indicators of SDGs. However, only a significant improvement in SDGs indicators for all the members of countries can ensure a win-win situation for all and became super power of Asia.