14 May 2015: The UN ‘Economic and Social Survey of Asia and the Pacific 2015’ reports overall reduction in poverty across the region, but notes a widening gap between the “haves” and the “have-nots.” For the first time, the report calculates an “Index of Inclusiveness,” based on five economic, five social and five environmental core indicators, so as to capture the three dimensions of sustainable development.
Launching its annual flagship report, the UN Economic and Social Commission for Asia and the Pacific (ESCAP) noted that the year 2015 marks “a watershed in global policymaking,” and that the success of the forthcoming Sustainable Development Goals (SDGs) will depend on how effectively the Asia-Pacific region makes economic growth more inclusive. The ESCAP report shows that despite countries’ success in reducing extreme poverty since the 1990s, fewer people are formally employed and access to health care and education depends largely on individuals’ own economic circumstances, rather than on State provision.
ESCAP Executive Secretary Shamsad Akhtar called on policymakers to strive for better social and environmental outcomes, public welfare and equal opportunity. She recommended deepening the region’s capital markets to promote a range of financing sources for needed investments, including “climate-friendly infrastructure” and social financing.
The report authors also analyze, by sub-region, hindrances to further growth, drawing attention to shortages of infrastructure and skilled labor in Southeast Asia, and excessive commodity dependence and worker remittances of countries particularly in Central and North Asia. India and Indonesia are forecast to experience strong growth, while China experiences a planned slowdown in the economy. Pacific island countries are anticipated to maintain strong growth, partly due to tourism and worker remittances, but also partly due to energy exports from Papua New Guinea and post-cyclone rebuilding activities in some countries; the region remains vulnerable to climate and disaster risks.
The indicators chosen to track inclusivity include the ratio of female to male participation in the labor force, fossil-fuel energy consumption, and percentage change in forest cover each year.
The authors recommend caution in monetary policy, due to rising oil prices and increased price volatility. They say that creating decent jobs remains a strong priority, and they look to the small and medium-sized enterprises (SMEs) and rural industrialization for these opportunities. [Publication: Economic and Social Survey of Asia and the Pacific 2015 – Part I: Making Growth More Inclusive for Sustainable Development] [ESCAP Press Release]