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Synopsis This book is a collection of papers presented at the second annual conference on India’s neighborhood titled – Changing Political Context in India’s Neighborhood and Prospects of Security and Regional Cooperation, organized by the Institute for Defence Studies and Analyses (IDSA) in November 2008. The papers have been revised and updated in light of the discussions in the conferences and are being served in this volume for wider dissemination of some of the innovative and pragmatic ideas the contributors have raised therein. The papers outline the common challenges that the countries face, identify the factors that inhibit inter-state cooperation, acknowledge the costs of non-cooperation, and reaffirm the need for the states in South Asia to shed their differences and engage with each other in meaningful ways. There is a common view that people of South Asia have natural affinities based on shared history, geography and culture and there is a natural bonding amongst the people which transcends the relationship between countries and governments. The contributors to this volume argue that the states of South Asia should take these facts into account while refashioning their policies towards each other and towards the region, and take initiatives to deal with common challenges facing them collectively. This would lay the foundation for a better tomorrow for the people of South Asia.