Inclusive democracy and economic inequality in South Asia: Any discernible link?

Studies of the relationship between political democracy and economic inequality have produced diverse findings. This study attempts to mitigate some conceptual and methodological problems inherent in such studies by using multi-indicator concepts of inclusive democracy and economic inequality. Data from the five major historically and culturally homogeneous South Asian countries covering 1980-2003 suggest some bidirectional, positive relationship between inclusive democracy and economic inequality indicating that democracy and equality may not be fully compatible in this region. The paper offers contextual explanations and some mechanisms that may have led to these findings for the region, somewhat deviating from the conventional arguments.