Developing Asia’s impressive growth continues but faces a new challenge — inequality is on the rise. Over the last few decades, the region has lifted people out of poverty at an unprecedented rate. But more recent experience contrasts with the ‘growth with equity’ story that characterised the newly industrialised economies’ transformation in the 1960s and 1970s.
The right policies could raise developing Asia’s potential growth by nearly 1 percentage point annually over the next ten years.
Asia has the potential to realize the Asian Century, but only adopting bold and visionary policies can help make this a reality.
Asian governments should introduce policies that do not slow down economic growth, but do spread its benefits more equitably.