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The lingering issue of Kashmir has virtually made the peace and prosperity of South Asia a hostage, which is considered the poorest and the most militarized region of the world. One fifth of the humanity and forty four percent of the poor live in this part of the world. It has been estimated that around $300 billion per year are spent by South Asian nations and China on military expenditure. Three nuclear states; China, Pakistan and India, are neighbouring each other, with a history of conflicts and wars. Kashmir has decidedly been the major cause of conflicts between Pakistan and India. The efforts and approaches to resolve Kashmir dispute have their own history. Economic approach to help resolve the issue of Kashmir has also been explored in the past, particularly in recent years, after rapid globalization. The paper in hand argues that the resolution of Kashmir dispute can accrue enormous dividends to the people of South Asia and the world at large. It can result in integration of the entire region, linking it with the rest of the world, which would ultimately render the Westphalian state structures irrelevant, by putting the stakes of all nations of the region together. Kashmir issue cannot be sidelined. An economic approach to conflict resolution provides the space to move on the road, which leads to peace and prosperity, provided the leadership, academia, civil societies and government functionaries in South Asian countries are able to rise above stereotypes and think about the collective good of the humanity in this part of the world. Keywords: Kashmir disput

Muqeem ul Islam, , Manzoor Ahmed. (2014) Towards the Resolution of Kashmir Dispute: Potential Areas of Economic Cooperation and Dividends, The Dialogue, Volume 9, Issue 2.
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