Institutional Resilience in South Asia: The Role of Governance, Preparedness, and Accountability

Abstract

Governments in South Asia remain vulnerable to recurrent shocks, exposing institutional, fiscal, and demographic weaknesses. This study develops an accounting-oriented framework to assess resilience across eight countries using a Composite Resilience Index (CRI) and advanced econometric techniques, including fixed-effects, 2SLS, and Structural Equation Modeling. Results show governance capacity, crisis preparedness, digital government, and performance auditing as the strongest driver of resilience, while health and emergency expenditure also contribute positively. Demographic pressures, however, significantly erode resilience and weaken other investments. Findings underscore the need for stronger accountability, strategic fiscal planning, and institutionalized resilience accounting to enhance adaptive capacity. JEL Codes: C38; H11; H61; H83; O20.