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| A publication of the Asian Development Bank | No. 2 December 2008 |
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ASIAN DEVELOPMENT BANK
PUBLISHER EDITORIAL AND CREATIVE DIRECTOR EDITORIAL AT LARGE EDITOR EDITORIAL ADVISORS CONTRIBUTING EDITOR COPY EDITOR ART DIRECTOR GRAPHICS PRESSGROUP HOLDINGS EUROPE S.A. PUBLISHER PRODUCTION COORDINATOR
Development Asia features development issues important
to the Asia and Pacific region. It is published twice a year
by the Asian Development Bank and Pressgroup Holdings
Europe S.A. The views expressed in this magazine are
those of the authors and do not reflect the views and
policies of the Asian Development Bank. Use of the term
“country” does not imply any judgment by the authors
or the Asian Development Bank as to the legal or other
status of any territorial entity.
COMMENTS Send your feedback to the editor at editor@development.asia. ADVERTISING To advertise in Development Asia, inquire at developmentasia@pressgroup.net. SUBSCRIPTIONS Contact subscriptions@pressgroup.net. REPRINTS Reprinted and translated articles should be credited “Reprinted from Development Asia.” Reprinted articles with bylines must have the author’s name. Send a copy of the reprinted article to the editor. Photos may be reprinted only with permission from the photographer or company credited. Write to the editor for more information.  |
How Much Should Inequality Matter? Photo by Richie Abrina
One worrisome trend in Asia is growing inequality—the rich are getting richer much faster than the poor. The issue was brought into sharp focus with the current financial turmoil, which is having a much greater impact on the poor than the rich. How much should inequality be a cause for alarm, if at all? What are the implications of a widening social divide? Should governments do something—or nothing? Our stories on this cover theme look at many aspects of a complex issue. Our guest economists present the case for and against interventions toward social inclusion, though they tend to support policies that promote equal opportunity and access to good education and basic health services. One of our main stories looks at the role of globalization in increasing well-being at all levels of society, but it also notes that the well-to-do are better placed than the poor to take advantage of the opportunities that globalization offers. We provide contrasting profiles of India and the Philippines. One shows how strong growth can create jobs for the poor despite structural inequalities. The other illustrates how even robust growth can fail to provide enough jobs because of structural inequalities. We also show how inequality is becoming more divisive in developed economies such as the Republic of Korea and Hong Kong, China. What can the poor do to help themselves? We show how, with dedication and patience, the poor can be empowered to choose and implement village-level projects. However, another view argues that the poor are often too focused on the struggle for survival to take adequate advantage of assistance. We show how small enterprises in Indonesia, which provide the vast majority of jobs for the poor, need to switch their focus on increasing productivity. We also report on how big business can benefit if they pay closer attention to the needs of the poor. We also look at how Asia should cope with the financial turmoil and economic recession in large parts of the West. The slowdown in Asia may increase poverty with likely knock-on effects, such as loss of jobs, especially in the export sector, and falling remittances from overseas. But it may also reduce inequality if the better-off are harder hit by the stock market crashes and drops in property values, as happened in some countries during the Asian crisis in the late 1990s. In another report, we show how, although “agflation”—the massive and sudden jump in food prices—has been overshadowed by financial crisis, it could be sparked off again by any number of factors, leading many to the brink of starvation. We also examine the growing role of “community journalism” in giving more voice to the poor as well as how state-controlled media in the Mekong region are changing as their economies become more market-oriented. We hope this issue, which spotlights several other development challenges, is provocative as well as interesting. We welcome your views on Development Asia and what you would like to see in future issues. Address your letters to the editor or e-mail editor@development.asia.
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