Experts call for policy to reduce inequality in Asia

A panel of experts has called for an urgent policy response to reduce inequality within and between countries in Asia to ensure that the benefits of economic growth permeate across social groups and classes.

The multi-country policy dialogues on inequality held in honour of Prof. Frances Stewart which started in Colombo recently was based on the research conducted by the UNDP in Nepal, India, Indonesia, Sri Lanka and Timor.

The keynote speakers were Frances Stewart, Prof. of Development Economics and director of the centre for research on inequality, human security and ethnicity, Oxford University and Sir Richard Jolly, an honorary professor at the Institute of Development Studies.

Prof. Frances Stewart said, "we have been successful in achieving economic growth but inequality is growing and has become a great issue. Income inequality is multi-dimensional and persist in sectors such as education, land ownership, political power and health.

Horizontal inequality, inequality between social groups such as ethnic, religious, political and regional groups is the cause for social unrest and conflicts," she said.

Experts said that the migration pattern in the region sends a clear signal to governments to manage the transition from rural to urban areas, particularly in view of the growing urban inequality. Urban tensions have already exploded into ethnic conflicts in several Asian cities. It was noted that conflicts both by State and non-state actors is hampering development and destabilising a number of countries. The experts called for human development strategies aimed at reducing these conflicts.

Asia is home to the largest number of mega cities and urban slums. In 1970, only one in five people lived in an urban city and by 2000 one in every three was an urban resident. Growing urban inequality throws a unique set of issues that need to be dealt with urgently to avoid further fuelling the social tensions between different groups living side by side, experts said.

"As the tragedy of Mumbai demonstrates, terrorism is a major threat to human development, said the head of the UNDP Regional Centre for Asia Pacific in Colombo Omar Norman.

There is a direct relationship between growing inequalities and conflict. Urban poverty is on the rise. Hunger and maternal mortality continue to remain serious concerns.

The region has more than 900 million people living in extreme poverty, more than the population of Sub-Saharan Africa, Norman said. Referring to growing tension in the South Asia Norman said today we discuss about a possible nuclear war. There is tension between India and Pakistan after the recent terrorist attacks. Today we have two options, to be defeated by terrorists or India and Pakistan get together and work closely against the common threat.

The experts proposed a five point action agenda to reduce inequalities and said that the current financial crisis demonstrates the need for a policy to have a good mix of market and State action which is critical in reducing inequalities.

GW