To keep access to the international financial markets the South Asian Countries will have to maintain not only open and liberal foreign exchange regimes, sound and robust financial sector but pursue consistent, credible and transparent economic policies. (b)  Along with sound economic policies there is growing evidence about the critical role of good governance and institutional quality in the growth-poverty reduction nexus.
The features of weak governance that is normally associated with South Asia are corruption, political patronage, lack of transparency, low observance of rule of law, absence of level playing field, heavy tilt in delivery of scarce of public goods and services towards the privileged and elite classes.