Post-Crisis, Developing Asia Looks to Harness Growth
| Author | Hyun-Sung Khang |
| Position | IMF Survey online |
The subject of how best to boost growth, and the impact of the recent global crisis in developing countries will be raised during the a one-day conference on March 22 organized by the State Bank of Vietnam and the International Monetary Fund, under the theme of "Post-crisis growth and poverty reduction in developing Asia".
"Asia has the largest number of poor people in the world. These people are becoming richer and richer thanks to their enterprising efforts, government policies, various business opportunities and their hard work. We would like to see what kind of policy options such countries need to adopt so that this process from low-income status, to middle-income status is realized," said Masato Miyazaki, the IMF’s mission chief for Vietnam and one of the organizers of the conference.
IMF economists predict that emerging Asia will grow by 8 ½ percent in 2010, led by China and India. Globally, the continent is also leading the rebound from the global crisis.
Developing Asia, which comprises the poorer countries in the region, weathered the crisis relatively well, due to the adoption of stimulative policies and continued robust remittance inflows. But it was also less impacted by the global downturn because of its limited integration into the global economy, weaker reliance on private portfolio flows, and the types of manufactured goods these countries produce, which were less affected by the slump.
Still, the downturn had a very real and negative impact on the lives of many of the poor on the continent. Before the crisis, poverty in Asia had fallen dramatically, but the recent global slump has pushed an estimated 14 million Asians back into poverty, with people living in agricultural areas, facing particular hardship.
The First Deputy Managing Director of the IMF, John Lipsky, who is giving the opening address at the conference, is expected to highlight the effect of the global slump on the poorest and most vulnerable. He will tell delegates that even small economic dislocations in developing countries can provoke considerable suffering.
Following the crisis, developing Asian countries are well-positioned to take advantage of surging inter-regional trade. But key policy challenges need to be addressed if these "verging-on-emerging" economies are to make the leap to the next stage of development.
- Macroeconomic...
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