Are small and ethnically homogenous states more prosperous as compared to large and diverse states? By prosperity, I mean lower crime rate, less internal tensions, more accountability of leaders and so on.
I have seen lot of people proposing solution of the Kashmir problem and thinking that peace can be achieved after its solution. In my opinion, the only lasting solution for South Asia is balkanization of India and possibly Pakistan into smaller states. This will allow local accountability of each region while denying the corrupt to use ethnic card. This will also eliminate or reduce the threat of spoilers and possibly an EU like organization can emerge.
Feel free to share your opinion on this.
Note that the two nation theory still holds in this case as well:
"That geographically contiguous units are demarcated into regions which should be constituted, with such territorial readjustments as may be necessary that the areas in which the Muslims are numerically in a majority as in the North Western and Eastern Zones of (British) India should be grouped to constitute 'independent states' in which the constituent units should be autonomous and sovereign. "