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Synopsis South Asia has become the cynosure of global attention after the nuclear weaponization of its two major constituents-India and Pakistan. In the perception of external observers this development combined with the existing patterns of conflictual relationships, large conventional military machines and military dictatorships and authoritarian regimes intensifies the potential for conflict in South Asia. South Asia regionally presents a picture of marked contrasts in all fields politically, militarily and economically. South Asia presents a picture of a troubled environment, militarily, politically, economically and socially. Such an explosive mix of factors make it imperative that one explores meaningful conflict resolution initiatives and measures to divert South Asia from the path of destruction to peace and prosperity. In the absence of such initiatives, one may get confronted with small fires leading to conflagration. In this sense, a conflict prone South Asia does become a global concern. The spill over effects of any South Asian conflict could extend or involve other regions such as the Middle East and South East Asia and global strategic entities such as USA and the European Union further afield. Thus conflict resolution in South Asia is a prerequisite for promotion of any meaningful regional cooperation and the ultimate mergence of a South Asian Economic Community akin to the European Economic Community. South Asia, however, continues to be a prisoner of the past in political and military terms i.e. political divisiveness and military confrontation arising from the formative stages of nation building. In political and military fields, therefore, it may be difficult to achieve mutual confidence and trust. Simultaneously building fresh economic and social structures in South Asia reinforcing mutual cooperation could provide a holistic model for peace and development in South Asia.