This publication is a comprehensive analysis of the development challenges and strategic options for South Asian countries during the 1980s. The main points consist of: - South Asia's growth in previous decades was slow, with persistent poverty and rising inequality. - Agriculture is the key constraint to development due to institutional and water management issues. - Export-led growth is limited, except possibly for Sri Lanka and Nepal. - Redistributive policies like land reform and rural development were largely ineffective. - Decentralization and local participation are essential for future progress. - Regional cooperation and self-reliance are recommended to reduce dependence on foreign aid. - Public enterprises and fiscal policies need reform to better serve equity and poverty reduction.