This paper analyzes the problems of regional co-operation in South Asia within a general political and social economy approach towards a "fractured or fragmented globalization". The word globalization, as commonly used, is largely a descriptive and not an analytical category. This paper attempts to give the term analytic content. It then focuses on both the positive and normative analysis of globalization. Trade, environment, finance and gender issues receive special attention. A global governance structure based on transparent principles of both economic efficiency and social justice is shown to be a desirable state of affairs; however, the present fractured process of globalization is more likely to end up in regionalism or even national protectionism and rivalry. Multilateral co-operation on the basis of the framework advanced here is an urgent necessity. For South Asia, such multilateral regional co-operation presents some special difficulties. But the paper argues that these difficulties, while challenging, can be overcome. The preconditions and prospects for building South Asian regional co-operation are discussed and a specific set of recommendations are offered.