Abstract:
South Asian economy, in general, has been experiencing high level of corruption, low economic growth, and worsening health and education indicators, thereby offering itself as a classic case study for evaluating the relationship between corruption and health care and education indicators. Due to data limitations, the study has been restricted for four countries of SAARC region; Pakistan, India, Bangladesh, Sri Lanka for a period of 1995-2012. Increasing population pressure, diversified security concerns and regional conflicts have reduced fiscal space for development expenditure on human capital development; the amount allocated is not efficiently utilized too. The examination discloses that corruption results in worsening of health and education conditions in SAARC region. The results also show that these conditions could be rectified with increase in GDP per capita, public spending on education and health services and by increasing tax revenues. Therefore to improve the economic conditions in South Asia, SAARC region in particular, anti corruption policies shall be formulated and implemented vigorously.
