A report released by the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) says that structural weaknesses constrain growth prospects of the developing economies in the Asia-Pacific in comparison to the rest of the world. The report stresses that more inclusive economic growth is key to ensuring sustainable prosperity for all and that the growth will increase to only 5.9 percent in 2015 from 5.8 percent last year, with no significant change expected in 2016. Inflation is expected to decline further largely due to lower international oil prices, which have led to interest rate cuts in many economies of the region. ESCAP has also introduced a new multidimensional Index of Inclusiveness to provide guidance to Asia-Pacific economies. The index applies a core set of 15 indicators of the economic, social and environmental dimensions of development and assigns equal weighting to each variable, to more comprehensively assess the degree of inclusive outcomes.
The report reveals that despite impressive economic growth in the Asia-Pacific region over the last few decades, about 743 million people are extremely poor, a majority of whom is living in India which is flexing its muscles to become another Asian Tiger. Moreover, the United States, Russia and Japan are acting as close economic partners of India to boost its economy, but inherent flaws in its structure and lopsided volume of its population mar every effort. The report finds impressive growth in Kazakhstan, followed by the Russian Federation and Thailand while it has been the least inclusive in Bangladesh, India, Nepal and Pakistan. The report expresses concern over large and widening income inequalities in many countries, as differences in access to critical public goods, such as education and health services, differ across various income groups. The report remarks that to make better progress it is necessary for the developing economies in Asia and the Pacific region to ensure equality of opportunities for all, especially women by broadening access to quality education and adequate healthcare.
The report says that the macroeconomic imbalances and severe power shortages are hampering development in South and South-West Asia while natural disasters could reverse economic and social gains, with massive loss of life and livelihoods in many countries. Reports from western organisations often ignore ground realities while studying and highlighting issues in the developing countries. South Asia is a volatile region where Indian hegemony is the main hurdle in the way of development in SAARC countries. The best way for a developing economy is to work in coordination, cooperation and collaboration with other economies in the region to share positive effects of economic development with each other.
