Added to that are the risks of unemployment and underemployment and their linkage to poverty which makes the labor market a primary concern for governments, the bank said. Formal safety nets such as public pension plans in the region represent a comparatively low priority in the face of other social protection issues. Governments have solicited little assistance from the World Bank in terms of pension reform. This will likely appear on the agenda soon, probably first in countries such as India and Sri Lanka, the study said. The region, according to the bank, shares some characteristics with Africa in terms of level of socioeconomic development.
Poverty is deep and widespread in a large population base.
The role of the state in the economy has generally been heavy-handed, which has created certain distortions. Financial markets have traditionally been weak. Public sector performance has been problematic, it said. The bank study shows that the most prominent type of public intervention has been public works programs which have met with reasonable success in the region. The World Bank s social protection portfolio in South Asia is the smallest of all regions, with around 25 projects approved since 1991.