News / Asia

Asian Economies Urged to Invest in Social Issues

Unskilled workers unload pebbles form a tug boat in Rangoon, Burma, November 23, 2012.
Unskilled workers unload pebbles form a tug boat in Rangoon, Burma, November 23, 2012.
Robert Carmichael
The United Nations' development arm for the Asia-Pacific region released its flagship report Thursday and is calling on governments to spend more money on key social issues, rather than concentrating solely on fiscal restraint and inflation.

For the past 30 years, countries have focused their macroeconomic policies on keeping inflation low and their spending within tight limits. But the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) believes this narrow focus on fiscal stability is wrong, particularly when applied to developing countries, because those measures have cut spending in key social areas such as education and health.

In its annual report, UNESCAP, said that approach has damaged development objectives -- and it is calling for a better balance.

Governments should be concerned with the quality of their spending, not just the quantity, and should focus more on health, education and social safety nets such as pensions and disability payments, said the report's authors. Nations must also keep a watchful eye on the damage done to the environment in their pursuit of economic growth, it said.

Nobuko Kajiura, an economic affairs officer with UNESCAP, said the U.N. body’s report arrived at its conclusions by simulating increased spending on its key recommendations in 10 countries, including China, India, Bangladesh and Indonesia, to calculate whether a new approach was sustainable. They found that it was.

“So basically we are saying that this is still affordable," Kajiura said. "Another question is: Is it going to destabilize the economy? No. These policies are affordable and doable without causing a destabilization of the economy.”

UNESCAP covers 62 countries in the Asia-Pacific region, from Turkey to Kiribati, Russia to New Zealand and everything in between. Those 62 countries are home to more than four billion people -- two-thirds of the global population.

Thursday’s report notes that the world’s economy remains in a vulnerable position after the 2008 global economic crisis, which it estimates cost this region $870 billion in lost gross domestic product. By 2017, it predicts, that cost will have risen to $1.3 trillion.

The global slowdown reduced growth in the Asia-Pacific region. Last year, it managed 5.6 percent, which is well under the approximately eight percent annual figure seen in the previous decade. The region’s economic growth is expected to reach six percent this year.

UNESCAP said that even during the decade of robust growth, income inequality in many countries worsened, leaving hundreds of millions of people vulnerable. And it worries the lives of the region’s poorest 800 million people, who live below the poverty line of $1.25 a day, might not improve unless governments refocus efforts on inclusive and sustainable development.

It also points out that a further 900 million people in the region live above the poverty line, but still earn less than two dollars a day. It would take very little to push them back into extreme poverty.

There are effective policies that can address the most vulnerable, said Nobuko Kajiura.

“The job guarantee program, universal non-contributory pension, benefits to all persons with disabilities, increasing the share of public health expenditure - five percent of GDP by 2030 - and universal enrollment in primary and secondary education and energy access to all," Kajiura said.

Another recommendation is a well-designed minimum wage policy. According to the report, Thailand put that into effect and, in so doing, will boost the number of jobs and its GDP.

UNESCAP estimates implementing these changes would cost most countries between five and 10 percent of GDP by 2030. Boosting relatively inefficient tax collections would help to finance that cost. But Nobuko Kajiura acknowledged whether countries in the region will carry out the recommended policies is an open question.

“It is up to the countries whether they will actually sort of implement any of the recommendations. But what we are trying to do is flag the kinds of possibilities to show that focusing on more social expenditure, for example, [will] not collapse the economy and that it actually eventually would benefit the country," she said.

In short, the report says focusing on economic growth at the expense of social development and environmental sustainability is outdated. It says all three goals can reinforce each other, with the result that many more people would be better off.

You May Like

Photogallery Pistorius Sentenced, Taken to Prison

Pistorius, convicted of culpable homicide in shooting death of girlfriend Reeva Steenkamp, will likely serve about 10 months of five-year sentence, before completing it under house arrest More

UN to Aid Central Africa in Polio Vaccinations

Synchronized vaccinations will be conducted after Cameroon reports a fifth case of the wild polio virus in its territory More

WHO: Ebola Vaccine Could Be in Use by January

WHO assistant director Dr. Marie Paule Kieny says clinical trials of Ebola vaccines are underway or planned in Europe, US and Africa More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
After Decades of Pressure, Luxembourg Drops Bank Secrecy Rulesi
X
October 21, 2014 12:20 AM
European Union finance ministers have reached a breakthrough agreement that will make it more difficult for tax cheats to hide their money. The new legislation, which had been blocked for years by countries with a reputation as tax havens, was approved last week after Luxembourg and Austria agreed to lift their vetoes. But as Mil Arcega reports, it doesn’t mean tax cheats have run out of places to keep their money hidden.
Video

Video After Decades of Pressure, Luxembourg Drops Bank Secrecy Rules

European Union finance ministers have reached a breakthrough agreement that will make it more difficult for tax cheats to hide their money. The new legislation, which had been blocked for years by countries with a reputation as tax havens, was approved last week after Luxembourg and Austria agreed to lift their vetoes. But as Mil Arcega reports, it doesn’t mean tax cheats have run out of places to keep their money hidden.
Video

Video Kobani Refugees Welcome, Turkey Criticizes, US Airdrop

Residents of Kobani in northern Syria have welcomed the airdrop of weapons, ammunition and medicine to Kurdish militia who are resisting the seizure of their city by Islamic State militants. The Turkish government, however, has criticized the operation. VOA’s Scott Bobb reports from southeastern Turkey, across the border from Kobani.
Video

Video China Political Meeting Seeks to Improve Rule of Law

China’s communist leaders will host a top level political meeting this week, called the Fourth Plenum, and for the first time in the party’s history, rule of law will be a key item on the agenda. Analysts and Chinese media reports say the meetings could see the approval of long-awaited measures aimed at giving courts more independence and include steps to enhance an already aggressive and high-reaching anti-corruption drive. VOA’s Bill Ide has more from Beijing.
Video

Video US ‘Death Cafes’ Put Focus on the Finale

In contemporary America, death usually is a topic to be avoided. But the growing “death café” movement encourages people to discuss their fears and desires about their final moments. VOA’s Jerome Socolovsky reports.
Video

Video Ebola Orphanage Opens in Sierra Leone

Sierra Leone's first Ebola orphanage has opened in the Kailahun district. Hundreds of children orphaned since the beginning of the Ebola outbreak face stigma and rejection with nobody to care for them. Adam Bailes reports for VOA about a new interim care center that's aimed at helping the growing number of children affected by Ebola.
Video

Video Young Nairobi Tech Innovator on 'Track' in Security Business

A 24-year-old technology innovator in Nairobi has invented a tracking device that monitors and secures cars. He has also come up with what he claims is the most robust audio-visual surveillance system yet. As Lenny Ruvaga reports from the Kenyan capital, his innovations are offering alternative security solutions.
Video

Video Latinas Converting to Islam for Identity, Structure

Latinos are one of the fastest growing groups in the Muslim religion. According to the Pew Research Center, about 6 percent of American Muslims are Latino. And a little more than half of new converts are female. VOA’s Carolyn Presutti travelled to Miami, Florida -- where two out of every three residents is Hispanic -- to learn more.
Video

Video Exclusive: American Joins Kurds' Anti-IS Fight

The United States and other Western nations have expressed alarm about their citizens joining Islamic State forces in Syria and Iraq. In a rare counterpoint to the phenomenon, an American has taken up arms with the militants' Syrian Kurdish opponents. Elizabeth Arrott has more in this exclusive profile by VOA Kurdish reporter Zana Omer in Ras al Ayn, Syria.
Video

Video South Korea Confronts Violence Within Military Ranks

Every able-bodied South Korean male between 18 and 35 must serve for 21 to 36 months in the country’s armed forces, depending upon the specific branch. For many, service is a rite of passage to manhood. But there are growing concerns that bullying and violence come along with the tradition. Reporter Jason Strother has more from Seoul.
Video

Video North Carolina Emerges as Key Election Battleground

U.S. congressional midterm elections will be held on November 4th and most political analysts give Republicans an excellent chance to win a majority in the U.S. Senate, which Democrats now control. So what are the issues driving voters in this congressional election year? VOA National Correspondent Jim Malone traveled to North Carolina, one of the most politically competitive states in the country, to find out.
Video

Video Comanche People Maintain Pride in Their Heritage

The Comanche (Indian nation) once were called the “Lords of the Plains,” with an empire that included half the land area of current day Texas, large parts of Oklahoma, New Mexico, Kansas and Colorado.The fierceness and battle prowess of these warriors on horseback delayed the settlement of most of West Texas for four decades. VOA’s Greg Flakus reports from Lawton, Oklahoma, that while their warrior days are over, the 15,000 members of the Comanche Nation remain a proud people.
Video

Video Turkey Campus Attacks Raise Islamic Radicalization Fears

Concerns are growing in Turkey of Islamic radicalization at some universities, after clashes between supporters of the jihadist group Islamic State (IS) or ISIS, and those opposed to the extremists. Pro-jihadist literature is on sale openly on the streets of Istanbul. Critics accuse the government of turning a blind eye to radicalism at home, while Kurds accuse the president of supporting IS - a charge strongly denied. Henry Ridgwell reports from London.

All About America

AppleAndroid