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ABSTRACTGlobalisation, the ever increasing economic and socio-political international interactions, poses challenges to public policy theory and practice. This paper aims to (a) draw an outline of a discussion and research agenda for theorizing the policy process under globalisation, by (b) identifying some theoretical consensus across disciplines and epistemological paradigms. The literature shows a consensus on 'constrained' state thesis and that globalisation affects all states through structural pressures as well as the neoliberal discourse. However, policy outcomes vary across states depending on their position in the international power structure and domestic adjustment costs. The paper concludes that policy studies shall focus on the changing functions and organisational forms of the state and explicitly incorporate domestic–international interactions into the theories of the policy process.

With the dawn of the twenty-first century, South Asian region has undergone radical transformation. It has witnessed a strong democratic sweep. Most of the South Asian economies have registered impressive growth trajectories. Some of its countries have also emerged as the hub of global terrorism. The international community has become far more involved in South Asian affairs due to the nuclearisation of the region. SAARC cannot but keep pace with the changing regional dynamics. It has moved ahead on its economic agenda and expanded its reach not only by adding new members ( Afghanistan ) but also by opening itself to the participation of many other countries, including China , Iran and the US , as Observers