South Asia to cut poverty by two-thirds in a decade
26 Jun '06
5 min read
The phrase “two Indias” that describes the great divide between those who benefit from Indian economic growth and the 300 million poor people being left further behind is a vivid example of the current challenge, repeated across South Asian countries.
Also key to reaching higher growth will be addressing rural and urban infrastructure deficits. The report says around $25 billion annually is needed for new infrastructure in the region.
“While the policy agenda appears daunting, the dynamism and openness that characterizes South Asia today makes us optimistic that some, if not all, of these challenges can be met and the region could be substantially free of poverty in a few decades,” says Ijaz Nabi, report co-author and Sector Manager for Economic Policy for the World Bank's South Asia region.
Measuring the quality of South Asia's economic growth:
A good way to measure South Asia's quality of growth and its potential impact on economic prosperity is to compare key economic indicators with those of East Asian countries growing at a similar pace.
Even though recent increases in South Asian per capita incomes now match those in East Asia, data shows that East Asian levels of prosperity are associated with much higher Foreign Direct Investment (FDI), skills, infrastructure, and perceptions of the business environment than those currently present in South Asia. For example, it takes 89 days to start a business in India, compared to 41 inChina.
marketing@alchempro.com
