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Synopsis South Asia Development and Cooperation Report 2004: South Asia has sustained an average growth rate of 5.5 per cent per annum over the past two decades despite many external and domestic shocks, making it one of the most dynamic regions in the world. With more than a decade of reforms behind them, the region’s economies are more intensively integrated with the global economy, growth of income and exports display promising outlook and inflation rates are in check. Despite such achievements in terms of economic performance, however, the region is home to more than two fifths of the world’s poor. The region also fares very poorly in terms of different indicators of human development such as education, health, nutrition, among others. Therefore, the region needs to further accelerate its growth process with an emphasis on human development and strengthen competitiveness to deal with the daunting challenges of alleviation of poverty, hunger, illiteracy, and disease. The South Asia Development and Cooperation Report 2004 (SADCR 2004) argues that the region can face these challenges much more effectively as a group rather than individually. The regional economic integration can, by exploiting the synergies, expand the economic opportunities available and strengthen the growth prospects. The recent experiences with economic integration. In the region, suggest that it leads to expansion of trade and development in a balanced and sustainable manner. In the light of these experiences and against the backdrop of mushrooming regional trading blocs in different parts of the world, the Report finds a compelling case for the region expeditiously effecting its transition into an economic and monetary union by implementing SAFTA, forming a SAARC Customs Union and introducing a South Asian parallel currency, as an intermediate step to a single currency. Among the key sectors presenting opportunities for mutually beneficial cooperation, SADCR 2004 selects transport infrastructure. Transport infrastructure is not only an important determinant of economic development but is also critical in exploiting the gains of economic integration resulting from geographical proximity. The Report also presents a detailed analysis of the capabilities, potential and challenges for mutually beneficial cooperation in the area of biotechnology that has tremendous promise for promoting food security and hence alleviation of poverty and hunger in the region. These are some of the issues addressed by the Report.