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nt Asian Development Bank (ADB) study, Key Indicators 2007, points to the obvious – but extremely alarming – trend: the fact that in developing countries (in Asia) the rich are growing richer faster than the poor, and that disparities between the ‘haves’ and the ‘have-nots’ continue to widen. “Inequalities in life start early, and they begin with extreme circumstances that deny millions the opportunity to have adequate nutrition, health and basic education… The key challenge to public policy here lies on not just increasing the quantum of public expenditures, but also ensuring that these are well targeted, effective and funded through mechanisms that do not detract from economic growth,” the report said. And although poverty rates have been on the downswing over the past decade or so (ever since the region started witnessing a boom), the poor have been left way behind in the race as relative and absolute inequalities have increased. So what are relative inequalities and absolute inequalities? Well, relative inequalities are the proportionate differences in incomes , while absolute inequalities are the actual dollar differences in incomes.
“…the expenditures of the rich or top 20% have increased much more than those of the poor or the bottom 20%… This has happened even in countries such as Indonesia and Malaysia where relative inequality declined,” the report observed. Among other things, the report also said that there is lop-sided growth in the urban and rural areas.
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2008
nt Asian Development Bank (ADB) study, Key Indicators 2007, points to the obvious – but extremely alarming – trend: the fact that in developing countries (in Asia) the rich are growing richer faster than the poor, and that disparities between the ‘haves’ and the ‘have-nots’ continue to widen. “Inequalities in life start early, and they begin with extreme circumstances that deny millions the opportunity to have adequate nutrition, health and basic education… The key challenge to public policy here lies on not just increasing the quantum of public expenditures, but also ensuring that these are well targeted, effective and funded through mechanisms that do not detract from economic growth,” the report said. And although poverty rates have been on the downswing over the past decade or so (ever since the region started witnessing a boom), the poor have been left way behind in the race as relative and absolute inequalities have increased. So what are relative inequalities and absolute inequalities? Well, relative inequalities are the proportionate differences in incomes , while absolute inequalities are the actual dollar differences in incomes.“…the expenditures of the rich or top 20% have increased much more than those of the poor or the bottom 20%… This has happened even in countries such as Indonesia and Malaysia where relative inequality declined,” the report observed. Among other things, the report also said that there is lop-sided growth in the urban and rural areas.
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2008
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