| Summary: | The countries of South Asia are ranked among the least competitive in the world and attract the lowest rate of foreign direct investment at just 0.5 per cent of GDP. The region's economic performance is poor. Potential investors see the political risks as "extremely high" since public service is exposed to political interference and characterized by bribery and corruption. Investment is flowing to countries with better domestic investment climates: good governance, sound institutions and a system of property rights. To bring investors to South Asia, governments must promote good governance, expand market reforms, reduce the burden of regulation, and work harder and more visibly to establish a liberal policy environment that sustains market incentives and investor trust.
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