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Public Policies in East Asian Development: Description The East Asian Crisis of and the following economic meltdown has raised new questions about the role of public policy in Asian economic growth and the best mix of policies to insure the survival of economic growth.

Although economists agree that macroeconomic stability, the encouragement of exports and FDI inflows, and the development of human resources have been important in East Asian growth, they do not agree on whether industry specific policies have been useful. The policy experiences of the countries are diverse and do not show a strong relationship between policies and success. Bringing together the work of development economics experts, this book looks at the role of economic policy in East Asian development, the challenge of the economic meltdown, and the critical issues raised by that meltdown.

Based on research and conferences at the International Centre for the Study of East Asian Development in Kitakyushu, Japan, the book opens with general chapters considering the policies behind East Asian growth, then discusses the policies of each country in country specific chapters. Up to date in its discussion, the book considers the questions raised by the crisis of from a variety of perspectives.

Top Authors

Product details Format Hardback pages Dimensions Bestsellers in Development Economics. Dead Aid Dambisa F Moyo. Coaching for Performance John Whitmore.

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Public Policies in East Asian Development : Facing New Challenges

Thinking in Systems Donella Meadows. Poor Economics Abhijit Banerjee. The End of Growth Richard Heinberg.

The Billionaire Raj James Crabtree. Built to Last James C. The World Trade Organization: Capitalism In America Adrian Wooldridge. Straight Talk on Trade Dani Rodrik.

Social and welfare issues

Strategies for Extraordinary Performance Kim S. Rising inequality can dampen the poverty-reduction impact of economic growth, and weaken the basis of growth. Had inequality remained stable in Asian economies, instead of increasing, growth would have lifted another million people out of poverty between and This is equivalent to 6.

High and rising inequality can undermine long-term growth by wasting human capital, increasing social tension, weakening governance and increasing pressure for inefficient populist policies. More and more countries are placing inclusive growth—growth based on equality of opportunity—at the heart of their development policy. Almost all reported that incomes in their respective countries were becoming more unequal.

A majority felt that success in reducing poverty was not enough to justify widening inequality. Because the forces behind rising inequality are also the engines of productivity and income growth, policy options to reverse these trends become more complex.

Bestselling Series

A distinction needs to be made between the income differences that arise as economies and individuals take advantage of opportunities created by new technology, trade, and efficiency-enhancing reforms, versus those that are generated by unequal access to market opportunities and public services. The latter require a rigorous policy response, especially since they are magnified by the driving forces of growth, lead to inefficiency and inequity, and undermine sustainability of growth. Reducing inequality and making growth more inclusive in Asia, therefore, requires the following mutually-re-enforcing policy actions.

First, fiscal policy must play an important role. Spending on social sectors—health, education and social protection—should be increased to build human capacities, especially of the disadvantaged, and reduce inequality in human capital.

Asia’s Challenges - OECD

This can be achieved without upsetting fiscal stability if governments raise more revenue by improving tax systems and administration and switching inefficient general subsidies such as those on fuels to more targeted transfers. At the same time, social sector spending should be used more effectively and efficiently, through better allocation and by plugging leakages.


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Second, the gap between rural and urban areas and across provinces must be bridged. Regions lagging behind need more and better infrastructure—not just in the form of physical connectivity, but also through policies and institutions that ease the flow of goods and services. Growth centres could be developed in lagging regions.

Regional inequality in China, for example, declined after it introduced its greater western development strategy. Barriers to migration from poor and rural to more prosperous and urban areas should also be removed. Third, productive and decent jobs are a must for inclusive growth.

This requires a business environment conducive to private investment and a well balanced composition of growth between industry, services, and agriculture.