Confronting Inequality in Asia
- Developing Asia’s impressive growth continues, but is paced by a new challenge-inequality on the rise.
- inequality of opportunity is also prevalent in developing Asia.
- Inequality of opportunity is a crucial factor in widening income inequality in developing Asia.
- Rising inequality can damp the poverty impact of economic growth.
- Inequality can weaken the basis of growth itself.
- Asian policy makers are becoming more concerned about inequality.
- technological progress, globalization, and market-oriented reform- the primary drivers of the region’s growth- are the key forces behind the rise of inequality.
- These forces affect income differences through three channels: capital, skill, and spatial bias.
- Because the forces behind rising inequality are also the engines of productivity and income growth, policy makers should not hinder their progress.
- Governments can address rising inequalities through several policy channels: efficient fiscal policies, interventions to improve regional balance, policies to make growth more employment friendly, and developing Asia mus turn back the tide of rising inequality.