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Asia, the Growth Pole of the World Economy |
| Source: |
financialexpress.com |
| Source Date: |
Sunday, June 12, 2011 |
| Focus: |
Electronic and Mobile Government, Citizen Engagement, Internet Governance
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| Created: |
Jun 14, 2011 |
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Asia and the Pacific, more than any other region in the world, will experience greater transformation and change in the coming years, as the region’s economic strength plays a greater role in the global economy and as its population centres struggle to overcome the burdens of poverty, hunger, natural disasters and social inequalities. The region’s economic growth figures, recently released in the UN ESCAP Economic and Social Survey of Asia and the Pacific 2011, indicate just how powerful Asia’s economy is for the world already.
The Asia-Pacific region recovered strongly in 2010 from the global financial crisis and recession of 2008-09 with the region’s developing economies growing at 8.8%. In 2011, growth in developing economies of the region is forecast to be 7.3%—lower than 2010’s high growth which represented a recovery from the low base of the 2009 recession.
Asia-Pacific remains by far the most dynamic growth region in the world, according to ESCAP, and the locomotive of global growth. Its growth rate this year will be nearly one and a half times more than any other region. While the region is led by the powerhouse developing economies of China and India, growing at 9.5% and 8.7% respectively, growth in 2011 is broad based at more than 5% across Asia-Pacific’s sub-regions.
Despite these promising economic growth figures, Asia-Pacific still remains vulnerable to the risks posed by volatile short-term capital flows and the resurgence of food and fuel price inflation, and, as the tragic March 11 disaster in Japan underscores, natural disasters.
High food prices have direct impact on the region’s poor. ESCAP estimates show that as many as 42 million additional people in the region are impoverished by 2011’s high food and energy prices.
High oil prices could significantly reduce economic growth—lowering predictions by up to one percentage point for some Asia-Pacific economies in 2011, especially vulnerable economies are Singapore, Thailand, Philippines and India.
For the poorest and most populated countries, high food and fuel prices will slow the effects of high economic growth helping families out of poverty. Achieving the millennium development goals for poverty alleviation by 2015 could be delayed by five years in many countries, especially in Bangladesh, India, Lao PDR and Nepal.
Countries can take immediate policy steps to moderate the impacts of rising food and fuel prices on our region’s poorest people:At the national level, lowering tariffs and taxes will reduce prices and social protection measures should be undertaken in the form of food vouchers, income transfers and school feeding programmes to reduce the burden on the poor. Government buffer stocks of commodities should be utilised when market supplies are low.
Over the longer term, all countries must focus on enhancing support for agricultural R&D and rural credit for fostering a new, knowledge-intensive green revolution. Such strategies will not only boost food supplies but will also assist the poorest communities, where sustainable agricultural development remains a reliable anti-poverty strategy.
Global initiatives, regional and sub-regional groupings should back up national strategies. The G20, the world’s major economic policy forum, could act to discipline speculative activity in food and fuel commodities and conversion of cereals into biofuels. For oil price volatility, the G20, being the group of all major consumers, including eight members from Asia and the Pacific, may engage OPEC—the group of major oil producers—to demarcate a benchmark
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Asia, the Growth Pole of the World Economy Asia and the Pacific more than any other region in the world will experience greater transformation and change in the coming years as the region’s economic strength plays a greater role in the global economy and as its population centres struggle to overcome the burdens of poverty hunger natural disasters and social inequalities The region’s economic growth figures recently released in the UN ESCAP Economic and Social Survey of Asia and the Pacific 2011 indicate just how powerful Asia’s economy is for the world already
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