The last few years have been significant for South Asia,withfundamental political and economic transitions in several ofthecountries. Bangaldesh opted for an interim government, followedbythe election of a democratic government. Pakistan sawtheassassination of a former Prime Minister, followed bypeacefulelections and, perhaps, hope for stability. Nepal wentthroughsubstantial change, with the Maoists initially in powerand,subsequently, opting out of the government. In contrast,electionsin Bhutan have brought a smooth transition to democracy.On theother hand, economic issues have dominated India in recenttimes,including aggressive responses to the global slowdown,fiscalexpansion and an early return to growth from the downturn. Inanattempt to capture these changes in South Asia, thispublicationfalls into two parts. The first deals with politicalissues in thecountries