The Economy of Southeast Asia

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It is a full presentation about the economy of the Southeast Asia.

Acknowledgement : this presentation stems from two parts, firstly, it's my own made presentaion from collecting data from many sources such as world bank, UN statistics, and ADB. Also, it's conglomeration of many slide presentation, especially, about the financial situation in region from many academicians. It is my grateful to say Thanks for all of the presentation.

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The Economy of Southeast Asia

  1. 1. ASEANThe Long Road Ahead
  2. 2. Economic Facts• GDP• GDP Growth Rate• GDP 2011• GDP Per Capita• GNI Per Capita• Human Development Index• Poverty Rate• Inequality Problem represented by Gini Coefficient
  3. 3. GDP (Current Million U.S.$) GDP Current U.S. $ (Million) Brunei Darussalam Cambodia Indonesia Lao PDR Malaysia Myanmar Philippines Singapore Thailand Vietnam 800000 600000 400000 200000 0 1990 1995 2000 2005 2010 yearSource: World Bank
  4. 4. GDP Growth Annual %
  5. 5. Source: World Bank
  6. 6. GDP Per capita (Current U.S.$)
  7. 7. GNI Per CapitaSource: World Bank
  8. 8. Source: UNDP
  9. 9. 2011 HDI Country HDI Rank Singapore Brunei Malaysia Thailand Philippines Indonesia Vietnam Lao Cambodia MyanmarSource : UNDP
  10. 10. Source: World Bank Average 67.2
  11. 11. Adult (15+)Literacy RateSource: CIA Mean 87.3
  12. 12. Povety and Inequality
  13. 13. Poverty Rate under 1.25$ Cambodia Philippines Malaysia Thailand Vietnam Singapore Indonesia Myanmar Lao Brunei 80 60 40 20 0 1980 1990 2000 2010 yearSource: World Bank
  14. 14. Poverty Alleviation
  15. 15. Source: ADB
  16. 16. Source: ADB
  17. 17. Reason for Inequality• Difference in- Opportunity- Education- Social Status- Skill- Physical and mental collalteral
  18. 18. Situation of InequalitySource: PBS
  19. 19. Source: UNDP
  20. 20. 2011 Gini Coefficient by World Bank Country Gini Thailand Cambodia Vietnam Myanmar NA Malaysia Brunei NA Indonesia Singapore Lao Philippines
  21. 21. Developing countries and trade probelm Unstable Export Market Worsening Terms of Trade Limited Accessed to global market
  22. 22. ASEAN Labor management presentation [Warawut Ruankham] [Sattawat Aunlimphan] [Ministry of labour] [AEC]
  23. 23. Overview• Asean population• Recent labour market• Youth employment• Education• Intra-regional labour migration in ASEAN• Occupational safety and health (OSH)
  24. 24. ASEAN Populations proportion
  25. 25. Population
  26. 26. Population Growth (1990-2010)
  27. 27. What would happen ?• Aging society
  28. 28. Population Policy• Family planning• Authoritarian Approach (Coercion and quotas)• Sterilization campaign• Developed countries help provide contraceptives to Less developed countries.• Improvement in women’s education
  29. 29. Recent labour market trends• Increasing labour supply creates pressure• Gender gap weakens labour force participation
  30. 30. Labour productivity
  31. 31. Job growth and labour productivity equally important
  32. 32. Employment shifts from agriculture to industry and services
  33. 33. English Proficiency Index (EF EPI)
  34. 34. English Proficiency Index (EF EPI)
  35. 35. Minimum wage
  36. 36. Migration
  37. 37. 7 Careers that can move freely
  38. 38. Immigrations
  39. 39. 1998-2005 Registered Migrants per Sex and Nationalities in Thailand (Ministry of Labor)
  40. 40. Labor Migration Flows
  41. 41. The policy• Ensure that migration is going to be mutually beneficial for all parties• Regularize the migration: regulate admissions• discourage employers hiring undocumented migrants and give migrant workers legal status• ensure equal treatment among both skilled and unskilled• Struggling to Provide Social Protection to Migrants
  42. 42. Safety at works 19 Workers Die in LethalDeath across the Constructionrail way Vietnam Work Accident CHINA
  43. 43. Occupational injuries by industry, latest year
  44. 44. Where is safety equipment ?
  45. 45. Reported cases of occupational disease
  46. 46. Occupational safety and health (OSH)
  47. 47. The policy• improved occupational injury and disease reporting systems, stronger labour inspection regimes and expanded coverage of workers.• A win-win policy, as sound safety and health practices are good for workers as well as for business.• The Factories and General Labour Laws Inspection Department
  48. 48. Youth employment (aged 15 to 24 years)
  49. 49. Youth employment (aged 15 to 24 years)• What they achieve as workers, entrepreneurs, innovators, agents of change, citizens, leaders, and parents will shape future economic, social, political, and technological developments.• They are the region’s greatest assets, but their potential is not being fully realized. In large part this is because they lack access to productive and decent work and, oftentimes, to sufficient educational opportunities.
  50. 50. Youth unemployment indicators in selected Asian countries
  51. 51. Linkages between youth employment and child labourChild labour and lack of access to education exacerbatesyouth employment challenge Education enrolment and completion rates
  52. 52. The policy• Educational support: increased investments in education, particularly in primary and secondary education in the lower-income ASEAN economies• Promote career training :encourage companies to invest in workers’ skills and improve access to new technologies which improves productivity and strengthen competitiveness.• Create youth employment: provide job seeker assistance and information. Subsidize those company who’re hiring fresh graduated student
  53. 53. Planning
  54. 54. ASEAN COMMUNITY
  55. 55. ASEAN COMMUNITYThe Three Pillars of the ASEAN COMMUNITY1. ASEAN POLITICAL-SECURITY COMMUNITY (APSC)2. ASEAN ECONOMIC COMMUNITY (AEC)3. ASEAN SOCIO-CULTURAL COMMUNITY (ASCC)
  56. 56. ASEAN POLITICAL-SECURITY COMMUNITY
  57. 57. ASEAN POLITICAL-SECURITY COMMUNITY (APSC) BLUEPRINT• ASEAN Political Security Community is one of the cooperation among the three pillars of the ASEAN Community that focuses on creating confidence, stability and peace in the region to ensure that ASEAN citizen live together in peace and free from the threat of the military and the threat of drug and transnational crime.
  58. 58. Objective of APSC1. A RULES-BASED COMMUNITY OF SHARED VALUES AND NORMS
  59. 59. Objective of APSC2. A COHESIVE, PEACEFUL AND RESILIENT REGION WITHSHAREDRESPONSIBILITY FOR COMPREHENSIVE SECURITY
  60. 60. Objective of APSC3. A DYNAMIC AND OUTWARD-LOOKING REGION IN AN INCREASINGLYINTEGRATED AND INTERDEPENDENT WORLD
  61. 61. ASEAN ECONOMIC COMMUNITY
  62. 62. ASEAN ECONOMIC COMMUNITY (AEC) BLUEPRINT• ASEAN Economic Community or AEC is one of the cooperation among the three pillars of the ASEAN Community that shall be the goal of regional economic integration by 2015• In short, the AEC will transform ASEAN into a region with free movement of goods, services, investment, skilled labor, and freer flow of capital.
  63. 63. key characteristics of AEC• Single Market and Production Base• Competitive Economic Region• Equitable Economic Development• Integration into the Global Economy
  64. 64. The areas of cooperation• Human resources development and capacity building• Recognition of professional qualifications• Consultation on economic and financial polices• Trade financing• Infrastructure and communications connectivity• Electronic transactions through e-ASEAN• Industrial integration to promote regional sourcing• Enhancing private sector involvement for the building of AEC
  65. 65. Challenges for AEC• Inadequate resources and institutional capacity• Weak coordination• Insufficient political will
  66. 66. Benefits of AEC Source: Schematic drawn by author based on arguments summarized in Plummer and Chia (2009)
  67. 67. ASEAN SOCIO-CULTURAL COMMUNITY
  68. 68. ASEAN SOCIO-CULTURAL COMMUNITY (ASCC) BLUEPRINT• ASEAN SOCIO-CULTURAL COMMUNITY or ASCC is one of the cooperation among the three pillars of the ASEAN Community that focused on nurturing the human, cultural and natural resources for sustained development in a harmonious and people-oriented ASEAN.
  69. 69. ASCC CHARACTERISTICS AND ELEMENTS• Human Development
  70. 70. ASCC CHARACTERISTICS AND ELEMENTS• Social Welfare and Protection
  71. 71. ASCC CHARACTERISTICS AND ELEMENTS• Social Justice and Rights
  72. 72. ASCC CHARACTERISTICS AND ELEMENTS• Ensuring Environmental Sustainability
  73. 73. ASCC CHARACTERISTICS AND ELEMENTS• Building ASEAN Identity
  74. 74. ASCC CHARACTERISTICS AND ELEMENTS• Narrowing The Development Gap
  75. 75. ASEAN HIGHWAY NETWORK
  76. 76. ASEAN HIGHWAY NETWORK• The ASEAN Highway Network Project aims to connect the high potential area in ASEAN.• These project has total of 23 routes.• By 2020 The highways which is assigned to be international highways will be develop to the class 1 or primary class
  77. 77. Greater Mekong Subregion : GMS• A development project formed by the Asian Development Bank in 1992• Brought together the six states of the Mekong River basin, namely Cambodia, Laos, Myanmar, Thailand, Vietnam, and the Yunnan Province of China.
  78. 78. GMS Strategic Framework for 2012- 2022• strengthen regional cooperation• including more effective resource utilization• more careful balancing of development with environmental concerns• ETC.
  79. 79. Post-Crisis Fiscal PolicyPriorities for the ASEAN-5 104
  80. 80. EXITING FROM POLICY SUPPORT The Cost of the CrisisTable 1. General Government Overall Fiscal Balances (In percent of GDP) 105
  81. 81. EXITING FROM POLICY SUPPORT The Cost of the CrisisTable 2. Comparison of the 2009 Fiscal Positions Across the ASEAN-5(In percent of GDP, unless otherwise indicated) 106
  82. 82. Post-Crisis OutlookTable 3. Comparison of the 2010 Fiscal Positions Across the ASEAN-5 107
  83. 83. Post-Crisis OutlookTable 4. General Government Debt and Primary Balance (In percent ofGDP) 108
  84. 84. Exit from Fiscal Policy Support Given the strong economic rebound in all the ASEAN-5,these economies are already beginning to identify andimplement their exit strategies from fiscal policy support. 109
  85. 85. THE ROLE OF PUBLIC POLICY IN STRENGTHENING FUTURE GROWTH POTENTIAL 1. Key Challenges: Addressing Infrastructure Gaps Infrastructure needs remain significant in most of the ASEAN-5 economies. 110
  86. 86. Key Challenges: Addressing Infrastructure GapsTable 5. Ranking on Basic Infrastructurein the Asia-Pacific 111
  87. 87. Key Challenges: Addressing Infrastructure Gaps Private Infrastructure Investment 112
  88. 88. Key Challenges: Addressing Infrastructure Gaps Public Investment 113
  89. 89. Key Challenges: Strengthening Private Consumption, Alleviating Poverty and Preparing for an Ageing Population Table 6. Private Consumption (In percent of GDP) 114
  90. 90. Key Challenges: Strengthening Private Consumption, Alleviating Poverty and Preparing for an Ageing Population - Demographics - Social security systems - Level of financial development 115
  91. 91. Key Challenges: Strengthening Private Consumption, Alleviating Poverty and Preparing for an Ageing Population Table 7. Poverty and Inequality Indicators 116
  92. 92. Key Challenges: Strengthening Private Consumption, Alleviating Poverty and Preparing for an Ageing Population Table 8. Social Spending (In percent of GDP) 117
  93. 93. FISCAL SPACE TO FOSTER MEDIUM-TERM GROWTH Creating Fiscal Space by Re-Orienting Spending PrioritiesTable 9. General Government Expenditure Structure: Selected Asian Economies, 2008 118
  94. 94. FISCAL SPACE TO FOSTER MEDIUM-TERM GROWTH Creating Fiscal Space through Revenue ReformsTable 10. Revenue Structure: Selected Asian Economies, 2008 (Or most recentavailable) 119
  95. 95. CONCLUSIONSWhat public policies could help address these long-termgrowth challenges?- Promoting private infrastructure investment andenhancing public investment- Supporting private consumption, alleviating poverty andpreparing for an ageingpopulation 120
  96. 96. CONCLUSIONSWhat policies could create the necessary fiscal space foradditional public spending in theseareas? - Broadening tax bases can increase tax revenue efficiency. - Containing wage bills, transfers, and subsidies, including by improved targeting and rationalizing of subsidies. 121
  97. 97. CONCLUSIONS- Increasing the efficiency of public investment to ensurebetter quality and lower coststhrough improvements in project appraisal and selection. - Taking advantage of private-sector efficiencies through PPPs, provided adequate safeguards and frameworks are in place.- Controlling fiscal risks, including from guarantees andother contingent liabilities to reduce fiscal vulnerability andto preserve fiscal space in the future. 122
  98. 98. ReferencesIMF Working Paper, Asia and Pacific Department and Fiscal Affairs Department, 2010, Post-Crisis Fiscal Policy Priorities for the ASEAN-5. 123
  99. 99. ASEAN CENTRAL BANK
  100. 100. Plan of Presentation• General Data• Policy Challenge
  101. 101. General Data
  102. 102. Central bank Policy objectives
  103. 103. Institutional Frameworks for Monetary Policy
  104. 104. Central bank rates
  105. 105. The percent change of inflation in average consumer price in ASEAN countries
  106. 106. The percent change of inflation in average consumer price in ASEAN countries
  107. 107. The percent change of inflation in average consumer price in ASEAN 5 countries
  108. 108. The percent change of inflation in average consumer price in CLMV countries
  109. 109. List of ASEAN countries by foreign-exchange reserve
  110. 110. List of ASEAN countries by foreign-exchange reserve
  111. 111. The independence of central bank in ASEAN countries
  112. 112. The percent of GDP of general government gross debt in ASEAN countries
  113. 113. The percent of GDP of general government gross debt in ASEAN countries
  114. 114. The percent of GDP of general government gross debt in ASEAN 5 countries
  115. 115. The percent of GDP of general government gross debt in CLMV countries
  116. 116. Policy Challenge
  117. 117. Policy Challenge• 1. Payment system development 1.1 Set the payment system in the same standard 1.2 The development of payment system among different currency in ASEAN
  118. 118. Policy Challenge• 2. Capital movement liberalization 2.1 Capital movement barrier reduction 2.2 The supporting of local currency in term of internal business in ASEAN
  119. 119. Policy Challenge• 3 Banking system and banking service development 3.1 Qualified ASEAN Bank: QAB 3.2 The decreasing of business banking problems among countries in ASEAN
  120. 120. Commerce
  121. 121. Agriculture Goods
  122. 122. Industrial
  123. 123. Industrial
  124. 124. Total ratio of the exports of the ASEAN countries distinguished by the group of the product Unit : Indonesia Percentage Malaysia Vietnam Singapore Thailand Philippines Cambodia 0% 20% 40% 60% 80% 100% Fuel and Mineral Agriculture and Fisheries Industry
  125. 125. Principal Import and Export Principal imports Principal exports BRUNEI machinery and transport equipment, crude oil, natural gas, and garments. manufactured goods, food, and chemicals.MYANMAR fabric, petroleum products, fertilizer, plastics, natural gas, wood products, pulses, beans, machinery, transport equipment, cement, fish, rice, clothing, and jade and gems construction materials, crude oil, food products, and edible oil.CAMBODIA petroleum products, cigarettes, gold, clothing, timber, rubber, rice, fish, construction materials, machinery, motor tobacco, and footwear vehicles, and pharmaceutical products.INDONESIA machinery and equipment, chemicals, fuels and oil and gas, electrical appliances, plywood, foodstuffs. textiles, and rubber. LAOS machinery and equipment, vehicles, fuel, and wood products, coffee, electricity, tin, consumer goods. copper, and gold.
  126. 126. Principal Import and Export (Cont) Principal imports Principal ExportsMALAYSIA electronics, machinery, petroleum electronic equipment, petroleum products, plastics, vehicles, iron and steel and liquefied natural gas, wood and wood products, and chemicals products, palm oil, rubber, textiles, and chemicals.PHILIPPINES electronic products, mineral fuels, semiconductors and electronic machinery and transport equipment, iron products, transport equipment, garments, copper and steel, textile fabrics, grains, chemicals, products, petroleum products, coconut oils, and and plastic. fruitsSINGAPORE machinery and equipment, mineral fuels, machinery and equipment (including electronics), chemicals, foodstuffs, and consumer consumer goods, pharmaceuticals and other goods. chemicals, and mineral fuels.THAILAND capital goods, intermediate goods and raw textiles and footwear, fishery products, rice, materials, consumer goods, and fuels. rubber, jewelry, automobiles, computers, and electrical appliances. VIETNAM machinery and equipment, petroleum crude oil, marine products, rice, products, fertilizer, steel products, raw coffee, rubber, tea, garments, and shoes. cotton, grain, cement, and motorcycles.
  127. 127. Import Value Index Myanmar Thailand VietnamValue Laos Malaysia Singapore Cambodia Brunei Indonesia Philippines Year
  128. 128. AEC Percent Import as GDPMyanmar Thailand Vietnam Laos MalaysiaSingapore Cambodia Brunei Indonesia Philipphine
  129. 129. The ratio of the goods export compared to the GDP of the countries in the ASEAN in 2010 Unit : % of Singapore Malaysia GDP Brunei Vietnam Thailand ASEAN Cambodia Laos Philippines Indonesia Myanmar
  130. 130. Export Market of the ASEAN in 2010 Unit : % of export of Country Number 1 each countriesNumber 3 Number 2 Myanmar ASEAN (49.2%) India (12.6%) China (6.7%) Laos ASEAN (47.3%) USA (23.1%) Australia (11.5%) Singapore ASEAN (30.0%) China (9.8%) Japan (9.4%) Malaysia ASEAN (25.4%) China (12.6%) EU27 (10.7%) Thailand ASEAN (49.2%) EU27 (11.2%) China (10.99%) Philippines ASEAN (22.7%) Japan (15.2%) USA (14.7%) Indonesia ASEAN (21.1%) Japan (16.3%) EU (10.9%) Vietnam USA (19.7%) EU27 (15.8%) ASEAN (14.3%) Cambodia USA (34.1%) EU27 (16.7%) ASEAN (12.6%) Brunei Japan(43.4%) South Korea(16.7%) ASEAN (12.3%)
  131. 131. Export Value Index Myanmar Thailand VietnamValue Laos Malaysia Singapore Cambodia Brunei Indonesia Philippines Year
  132. 132. AEC Percent Export as GDPMyanmar Thailand Vietnam Laos MalaysiaSingapore Cambodia Brunei Indonesia Philippines
  133. 133. Comparing the Export-Import Value of Total Goods Categories of Each Country in the ASEAN Market in 2012
  134. 134. ASEAN’S TRADE WITH MAIN PARTNERS : GROUPS
  135. 135. ASEAN’S TRADE WITH MAIN PARTNERS : COUNTRIES
  136. 136. FDI
  137. 137. Global and ASEAN output growth In percentSource: ADB (2010). Asian Development Outlook2010 UpdateNote: Forecast for 2010-2011.
  138. 138. Global FDI inflows in billion USDSource: UNCTAD (2010b). Global Investment Trends Monitor, Second and Third Quarters of 2010,Fig. 1, p. 1.
  139. 139. Total FDI inflows to ASEAN, 2000-2009 (in million USD) Source ASEAN Secretariat FDI Database
  140. 140. FDI inflows to ASEAN by economic sector, 2000-2009 in percent) Source: ASEAN Secretariat FDI Database
  141. 141. Breakdown of FDI inflows to the services sector, 2005-2009 (in million USD) Source ASEAN Secretariat FDI Database
  142. 142. FDI inflows to ASEAN by sourcecountry, 2006-2009 (in million USD) Source ASEAN Secretariat FDI Database
  143. 143. Intra-ASEAN FDI Inflows, 2009 (in million USD) Source ASEAN Secretariat FDI Database
  144. 144. Intra-ASEAN FDI inflows, 2000-2009(in million USD and percent share of total FDI inflows) Source ASEAN Secretariat FDI Database
  145. 145. FDI inflows as a ratio of GDP in percent Source: ASEAN Secretariat FDI Database
  146. 146. FDI inflows as gross fixed capital formation (in percent) Source UNCTAD
  147. 147. Top host economies for FDI in 2010 –2012Source: UNCTAD (2010a). World Investment Prospects Survey 2010-2012,figure 14, page 13.Note: Numbers in parentheses before the name of selected countries are their rankings in 2009.
  148. 148. Measuring competitiveness in ASEAN: GlobalCompetitiveness Index (GCI), Average for ASEAN
  149. 149. Policy HOST COUNTRY≫ Financial Incentives≫ Infrastructure≫ Red Tape* HOME COUNTRY≫ Expropriation of assets≫ Double Taxation-Earned Profit≫ Cash Flow Insurance
  150. 150. Policy to encourage FDI ∎ “RED TAPE” : The cutting of RED TAPE or RED TAPEreduction  Save Time  Cost ReductionLaw, Local requirement, infrastructure, economic zone Example : Myanmar
  151. 151. Trade
  152. 152. Trade in Goods
  153. 153. Trade in Commercial Services (services excluding government services)
  154. 154. COMPETITIVENESS RANKINGS BY ASEAN REGION Country Global Competitiveness Index 2011-2012Singapore 2Malaysia 21Brunei 28Thailand 39Indonesia 46Vietnam 65Philippines 75Cambodia 97Myanmar NALao PDR NA
  155. 155. Table 2. Trade Balance Of Each Country in the ASEAN Market in2006 - 2010 Unit : US$ million Country 2006 2007 2008 2009 2010Thailand 3,493 7,690 9,678 7,498 13,650Indonesia -488 -1,500 -13,797 -3,098 -5,565Malaysia 9,812 9,139 13,248 9,327 5,824Philippines -2,022 -4,804 -7,049 -5,029 -3,490Singapore 21,533 29,237 33,751 22,620 31,906Vietnam -6,228 -7,695 -9,702 -8,128 -10,906Brunei 983 976 1,376 -574 -648Cambodia -1,761 -1,994 -2,683 -2,135 -4,567Myanmar 933 421 498 278 -688Laos -528 -907 -1,191 -1,221 -1,414Source: Global Trade Atlas, 2011
  156. 156. Comparing the Trade Balance of Each Country in the ASEAN Market in 2006-2010
  157. 157. Intra and Extra Trade 1993 201 1 Source: aseansec.org
  158. 158. Balance of Trade AEC--- Myanmar Thailand Vietnam Laos Malaysia Singapore Cambodia Brunei
  159. 159. Term of TradeMyanmar Thailand Vietnam LaosMalaysia Singapore Cambodia Brunei
  160. 160. The Global Competitiveness Index 2011 – 2012 rankings GCI 2011-2012 GCI 2010-2011 Country/Economy Rank Score Rank ChangeSingapore 2 5.63 3 1Malaysia 21 5.08 26 5Brunei Darussalam 28 4.78 28 0Thailand 39 4.52 38 -1Indonesia 46 4.38 44 -2Vietnam 65 4.24 59 -6Philippines 75 4.08 85 10Cambodia 97 3.85 109 12Lao PDR - - - -Myanmar - - - -
  161. 161. FTA ASEAN +6Goods : Goods , Services2006 and InvestmentServices : : 1 June 20102007Investment : ASEAN – SOUTH KOREA2009Goods , Servicesand Investment Goods , Services: 1 June 2009 and Investment : 1 January 2010 Goods and Services :
  162. 162. FTA
  163. 163. 6
  164. 164. FTA : ASEAN AND CHINA China’s trade tariffs on ASEAN products have been 0.1 percenton average since 2010, compared with its 9.8 percent tariff on allother foreign trade The tariff lines which are subject to the tariff reduction orelimination program under this Agreement shall be categorized fortariff reduction and elimination as follows : - Normal Track - Sensitive Track - 20 % in 2012 , 0-5% in 2018 - 50 % in 2015 for Highly Sensitive Track The proposed rail links between China and ASEAN countries willfacilitate the realization of ASEAN’s ambition of building an ASEANeconomic community by 2015.
  165. 165. FTA : IN THE FUTURE GCC MERCOSURBahrain , Argentina ,Kuwait , Brazil ,Oman , Paraguay ,Qatar , Saudi EU RUSSIA Uruguay andArabia and VenezuelaUAE
  166. 166. Policy to encourage regional trade integration• Reduce tariff to zero percent• Reduce NTBs including countervailing duties, anti dumping duties, quota, subsidies• Support Labor movement• Flying geese of South East Asia (Innovation Cycle)• Do what we are good at followed H-O model• Make Trade Route more convenient
  167. 167. Policy SolutionFour Cores• Property Rights• Government Regulations• Taxation• Marketable Permits
  168. 168. • Economic growth does not tell us about penury reduction.• An indigent is still destitute. Life is still unprivileged. Personal is deprived. Education is lower than acceptable standard.
  169. 169. MDGs
  170. 170. Quote• James Speth, the executivedirector of the United NationsDevelopment Program,• “Poverty is no longer inevitable. The world has the material and natural resources, the know- how and the people to make a poverty-free world a reality less than a generation. This is not wholly idealism but a practical and achievable goal”
  171. 171. Poverty and Inequality PolicyTodaro;• Altering the functional distribution of income through policies designed to change relative factor prices• Modifying the size distribution through progressive redistribution of asset ownership• Reducing the size distribution of the upper levels through progressive income and wealth tax• Direct transfer payments and the public provision of goods and services
  172. 172. (Cont)• World Bank 1990- Promote market-oriented economic growth- Direct basic health and education services to the poor• Dwight H. Perkins- Improving opportunities for the poor- Income transfer and Safety Nets
  173. 173. Inequality, economic size, and demographic sizeDemographic size- Indonesia, Myanmar, Thailand, Malaysia,VietnamEconomic Size- Indonesia, Thailand, Malaysia, Singapore,Philippines
  174. 174. • J. Malcolm Dowling and Ma. Rebecca ValenzuelaFor rural poverty- Uplift the status of women- Relax tenancy regulations- Check rural credit schemes- Encourage labor migration- Provide rural infrastructure- Appropriate currency exchange rate- Establish property right
  175. 175. Cont.For Urban Poverty- Accelerate economic growth- Provision of social services- Dealing with squatters- Land use
  176. 176. Human Development Policy• Holistic Policy about health and education- Medical Facilities and services- Encourage basic physical and mental health care among citizens- Support Primary and Secondary School- Create norms to be reading society
  177. 177. Tax Super Rich (Buffet) Highlight Revenue Fee from on congested Individual Policy goodsIncome Tax Stabilize CIT
  178. 178. Policy for HIV/ AIDS in Asia• Promote the use of condoms among sex workers and bisexual men• Publicize the necessary for using measures to protect against AIDS, such as condoms, and highlight the importance of not sharing needles• Make condoms and needles widely available and at reasonable prices, or supplied free in clinics• General promotion of HIV/ AIDS awareness through public media and NGOs, newspaper, magazine articles
  179. 179. Trade PolicyFor support outward orientation• Remove quotas and tariffs and other forms of protection, especially on capital and intermediate goods• Allow the current to float with a market- determined exchange rate, and ensure macroeconomic stability through prudent monetary and fiscal policies.
  180. 180. Cont• Reduce unnecessary regulatory burdens, bureaucratic costs, and red tape that add to business costs• Keep factor market flexible, especially for labor and credit, with market determined wages and interest ratesSo as to open country to global market, andexpand market access
  181. 181. Cont• Regional Trade Agreement- Sometimes it’s considered as Trade Blocs or Trade Block.- FTA, Customs Markets, Common Market,Economic Union,
  182. 182. Trade Policy According to Theory• Harrod – Domar Theory Export in commodity Myanmar = Natural requiring inputs that it’s Resource, Gas, unskilled available in country and labour-intensive import in commodity Thailand = Agricultural requiring inputs that it’s output, labour – scare in country. It intensive depends on factor endowment Malaysia = Natural Gas, Petroleum Example
  183. 183. Cont.• Stopher – Samuelson Theorem and labor movement If country A and Subsequently, Wage country B do a trade rate in Singapore, under unequal wage Philippines, Thailand rate – assuming Wage may be fall down in A is higher than in B, according to this trade will cause wage theory. Wage rate in rate increase in B and Cambodia, Vietnam, decrease in A. Laos may decline.
  184. 184. Multilateral Trade Negotiaions and WTOPurpose • The global average tariff on manufactured goods was reduced by about one third. • Agricultural protection, which the industrialized countries had always excluded from negotiations, was incorporated for the first time. • Participants agreed to phase out the Multi- Fiber Agreement and the Agreement on Textiles and clothing, which restricted textile and clothing imports in industrial countries, with complete elimination by January 1, 200
  185. 185. Cont• Industrial countries, especially the United States, won stricter adherence to trade – related intellectual property rights, or TRIPS, that prevent the use of patented material and the production of generic “copycat” products without permission. They also won agreement on new rule on investment and trade in services.
  186. 186. Grand BargainThe industrialized countries promised• A significant reduction in tariffs• The end of the Multi-fiber Agreement• Reductions in the agricultural subsidiesThe developing countries promised• Larger reductions in their own tariff• Agreement on new rules on investment, services, and TRIPS• Support for new WTO
  187. 187. Inclusive Growth  Pro-poor Strategy Economic growth This idea leads to was shared by the avoidance of poor not only the Kuznet’s Curve said rich. It’s tackled that the more down. It’s not economic growth concentrated on take place, the more only CEOs or is income inequality. manager As inclusive growth happened, income inequality is believed to be eradicated.
  188. 188. Being Welfare State Welfare Program Effective LawHighprogressiveTax
  189. 189. underdevelopment Criteria
  190. 190. Development Criteria
  191. 191. One VisionOne IdentityOne Community
  192. 192. Thank You

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