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By Juzhong Zhuang. Posted November 30, 2012
Developing Asia’s impressive growth continues, but faces a new challenge—inequality on the rise.1 Over the last few decades, the region has lifted people out of poverty at an unprecedented rate. But more recent experience contrasts with the “growth with equity” story that characterized the transformation of the newly industrialized economies in the 1960s and 1970s. In the 12 economies that account for more than four-fifths of the region’s population, income disparities expanded during the last two decades—despite the region’s world-beating performance in raising average incomes and reducing poverty.
By Muhammad Yunus. Posted September 4, 2012
Grameen Bank (Village Bank) in Bangladesh is the world’s most well-known microfinance institution. It lends $1.5 billion a year to 8.4 million people. The establishment of Grameen Bank shows that we do not always have to accept the systems we are given. Sometimes we have to think the impossible if we are really going to change the world. My first venture into such small-scale lending was not carefully thought out or based on any previous research; rather, it was an instinctive response made when I came face-to-face with gross injustice. In 1976, I was teaching economics in the port city of Chittagong in Bangladesh.
By Durreen Shahnaz. Posted June 8, 2012
The time has come to look at “social enterprises”—a form of capitalism that includes social and environmental objectives in addition to the profit motive. More than a century ago, Henry Ford asserted that “a business that makes nothing but money is a poor business.” The world is now overrun by such “poor businesses.” The heedless pursuit of financial gains may produce happy management teams and shareholders, but it also results in an unhappy planet for businesses to operate in. The solution is not for these businesses to give some money to charity, or to get employees to play “builder” or “teacher” for a day as part of so-called “corporate social responsibility” initiatives.
By Takashi Kihara. Posted April 18, 2012
Since 2003, the Center for Global Development (CGD), a Washington-based think tank, has been ranking the aid programs of the world’s richest countries using its commitment to development index (CDI). The CGD produces an index of donor performance, which measures “aid quantity and quality”. This index tracks net aid transfer as a share of gross domestic product (GDP), while penalizing tied aid and project “proliferation” and rewarding aid to poor but non-corrupt recipients (this is referred to as aid “selectivity”).
By Gloria Pasadilla. Posted February 6, 2012
The movement of workers within the ASEAN region has been on the rise over the last two decades. In Malaysia, for example, the number of foreign workers grew from less than 250,000 in 1990 to more than 2 million in 2007, about 67% of whom come from ASEAN countries. Singapore, Brunei Darussalam and Thailand have become major labor recipients, while the other ASEAN countries are labor senders (Figure 1). However, the ease of labor flows within ASEAN is not matched by the portability of migrants’ social security benefits. Some hosting countries have nationality conditions or minimum residency requirements that prevent migrants from participating in social security schemes.
By Willem Thorbecke. Posted January 12, 2012
The PRC needs to redirect money away from increasing its external reserves and toward spending on education, health care, and affordable housing to improve the well-being of its citizens. The PRC would benefit greatly from an exchange rate regime characterized by a multiple-currency, basket-based reference rate, and a reasonably wide band. Greater exchange rate flexibility would allow more decoupling between PRC and US interest rates, helping the People’s Bank of China (PBOC) to implement monetary policy that is best for the nation. The PRC’s exchange rate interventions to sustain the export-oriented thrust of the economy are not helpful to the nation for several reasons.
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