Financial Times

Cinderella misses golden slipper of Asian growth!
Development partners DFID-UK, World Bank and ADB recently arranged a conference in London titled Asia 2015:Promoting Growth, Ending Poverty.
Ministers of finance and planning and senior officials from across Asia, as well as influential figures from civil society and the private sector discussed the changing face of development in Asia over the next decade and how Asian countries along with development agencies and the international community could build new forms of partnership to eradicate poverty.

The conference re-focused the attention of the international community on the importance of continued – and increased – assistance to developing Asia and reaffirmed the importance of Asia for global poverty reduction and development, and also as a prime driver of global growth.

Asia has achieved remarkable successes in its development. More people have been lifted out of extreme poverty in Asia in the last 20 years than at any other time in human history. Asia is changing. Yet there remains immense challenges. Some 620 million Asians, two-thirds of the world’s poor people, still live on less than $1 a day.

With the right policy approaches and development partnerships that are meaningful, effective and generous, there is a real prospect of ending extreme poverty in Asia within a generation.

The vision sees Asia as a thriving regional economy that is well integrated internally and with the international economy with all countries and citizens having the opportunity to contribute to economic growth and to share the benefits to improve their quality of life.

Poor women and men must actively participate in growth today: growing now and reducing poverty later will not work. It was recognized that development partners need to respond to the changing demands of partners and customers.
Regional cooperation, sharing ideas, trading and investing with one another are important. Participants stressed the value of sharing experiences and south-south cooperation within and beyond the Asian region.

Immense challenges still remain – in managing issues of energy, climate change, communicable diseases, nutrition, urbanization, pollution, health, education, water and sanitation, along with the search for peace and security.
Shared commitments to human rights, fighting corruption, and to good governance and social exclusion are needed to achieve this vision.

Pressures on the environment are a risk to sustained high rates of economic growth in Asia and “growing first and cleaning up afterwards” is not an option. Climate change is progressing faster than expected causing sea levels to rise and more frequent extreme climatic events.

Higher oil prices mean energy efficiency is critical. Poor households need improved access to energy. The health risks from traditional indoor biomass burning, which disproportionately affect women need to be addressed. Unequal access and competition for natural resources are potential sources of conflict and insecurity. The state must put policies in place to unleash the potential of local actors to manage their local environment.

Science and technology is key to reducing the uncertainties associated with climate change. SMEs are a critical part of the private sector for the livelihoods of poor people and should be encouraged along with entrepreneurship, skills and creation of new jobs.

An open and well regulated financial sector improves access to finance, channels savings to productive use, and develops financial markets. Micro-finance and micro-savings have an important role to play in poverty reduction.
In partnership with governments, the private sector has a direct role in reducing poverty and social exclusion with improved quality of life for poor people though good employment practices, the provision of infrastructure and social services, such as health and education, and by creating jobs especially in financially viable backward regions.

Infrastructure equips people to move out of poverty; its absence is a barrier to growth. The infrastructure needs of rural areas are as important as those of urban areas and should provide good opportunities for private sector investment.

A holistic approach is needed in order to achieve policy objectives, that would connect with strengthening state capacity, mobilizing voice (media and civil society) and political commitment. Joining-up political and technical agendas helps make reforms such as decentralization work. Making decentralization deliver (on policies and service delivery) requires both capacity building and public awareness.

Incremental solutions based on small steps that secure political support often work best. Sri Lanka was one of two Asian nations not represented by a Ministerial delegation at the conference. Issues impacting in the growth process to 2015 and how the new “Chinthanaya ” will deliver and Sri Lanka’s expectations from the development partners were not presented. In the Walt Disney film, despite the obstacles Cinderella attends the ball to stake her claim for the golden slipper.

The Sri Lankan Cinderella, though invited decided to give this significant opportunity a miss. May be the Ministry of Finance officials believe in unplugging from the network with development partners as the way to growth and poverty eradication under the new Chinthanaya!

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