Across South Asia in the last two decades, there has been widespread emphasis on governance reforms aiming to reduce poverty through Millennium Development Goals (MDGs). The recent development agenda has had great impact over the region , and this book finds that it largely widens the gap between the rich and poor, which combined with rising inflation, contributes to political instability. The book analyses the discourses of development agenda and governance crisis and provides a survey of the region by not only focusing on India, Pakistan and Bangladesh but also on the smaller countries in the region, such as Bhutan. Explaining three components of the development agenda as criteria for economic development - poverty reduction, governance reforms and civil society participation through liberal democracy - this book explores the consequences of the neo-liberal democracy and recent development agenda coupled with governance reforms. This work argues that the political economy of South Asia is largely derived from experiences of historical colonialism and recent changes driven by contemporary rise of India as a global power after the triumph of new-liberal democracy and market capitalism in the post-cold war era. It proposes a strengthening of the instruments of endogenous governance and people's participation in South Asian countries to reduce poverty through MDGs and other development goals in combination with top-down and bottom up approaches. Offering an understanding of governance and development in the context of the South Asia, this book will be of interest to academics in the fields of Political Economics, International Development Studies, Political Science, and Governance Studies, as well as policy makers.