Asian growth at risk

MANILA – ASIA’S economic growth and social order is being threatened by a lack of equality that has seen hundreds of millions of people left in poverty, the Asian Development Bank (ADB) warned on Thursday.

ADB managing director general Rajat Nag said despite the sharp growth enjoyed by the region in the past 30 years there was a widening gap between rich and poor.

‘The rich are getting richer faster than the poor are getting richer,’ he said, warning that it could foster disorder and impede growth.

The global financial crisis had worsened the situation, he said, warning that ‘for Asia, this is a social crisis.’

Speaking at a forum of the Platinum Circle business group in Manila, Mr Nag said there were still about 620 million people in the region living on less than a dollar a day and 700 million without access to drinkable water.

There were also 107 million children under five who were underweight and 100 million children not enrolled in primary school.

This could result in a huge population of physically and mentally deficient people in Asia, he warned.

Additionally, the large youth population could become ‘a demographic curse,’ if Asian countries don’t find jobs for them, he said, adding that ‘only 60 per cent of young men and 40 per cent of young women are employed.’

To raise more people out of poverty, Mr Nag said Asia had to spend about US$400 billion (S$578 billion) a year on infrastructure.

He also called for further integration of Asian economies to make them less dependent on Western nations. — AFP