Context
South Asia is home to a large, fast-growing population with a substantial proportion living in poverty. In
terms of the demographic transition, it is still relatively young, while the regional average life expectancy
at birth, 64 years, is rising. Most people live in rural areas (71 percent).2 Despite annual average
6 percent gross domestic product (GDP) growth in the last 20 years and declines in poverty rates,
growth has not been inclusive or fast enough to reduce the number of the poor. Inequality has risen,
reflecting deep distortions in access to markets, and in access to and quality of health, education, and
infrastructure. These factors have contributed to mixed progress on the health-related Millennium
Development Goals, as has the failure of health systems to adjust to people’s changing needs. There is
tremendous variation in population size among countries, yet all countries have similar proportions
living in rural areas and significant pockets of poverty—an important point, not only for considering the