HD in Inclusive GrowthExamples of ESW in EAP Xiaoqing Yu (EASHS) and JehanArulpragasam (MDI) Human Development Unit, EAP
The inclusiveness of growth has been an increasing concern among EAP countries Concerns • Phenomenal growth and accumulation of wealth • Rising inequality in various dimensions • Need to sustain growth and remain competitive • Concerns over social cohesion and the changing societies – ageing, mobility, information Interests • China, Philippines, Thailand, Malaysia, …
Human development is an integral part of the inclusive growth story • Tackling the remaining challenges in absolute deprivation – social protection • Equal opportunities to prepare for future – education and skills development, health provision and protection, basic social services • Equal opportunities to participate in and benefit from economic growth – labor market, land and natural resources, financial market, private sector development • Equal chance to participate in the development process –transparency, governance, decision making
Shared Growth in ChinaThe Story of Guangdong Context • China’s most prosperous province – 12% of China’s national output; 18thlargest economy in the world (similar to the size of Turkey and Indonesia) • China most populous province – 79 mln residents + 31 mlnmigrants • Pioneer of China’s opening-up and economic reform; Closely integrated with the world. Issues and diagnostics • Persistent poverty in parts of the province; rising inequality not only between rural and urban, between Pearl River Delta and other remote areas, but substantially within Pearl River Delta; • Alarming level of disparities in income and wealth largely due to unequal opportunities – access to basic education and health services; lack of access to finance and land protection; barriers to migration and skills acquisition • Recent reforms in HD have profound positive impacts in moving towards a more balanced, human centered, more inclusive growth model, but they need to be taken further…
Shared Growth in ChinaThe Story of Guangdong The study • Initiated by senior leadership of the government during Mr. Zoellick’s first visit as WB President • A collaborative effort with the government: close involvement of the Government, a government funded Guangdong research team, and a multi-sectoral Bank team (HD, PSD, FPD, RD) • The study covers areas of poverty and inequality, social assistance, spatial transformation of industries, labor market, rural finance, land reform, basic education, skills development, and rural health. • Substantial knowledge sharing during the process – workshops, technical comments provided by the Bank team, use of other Bank products (e.g. WDRs) • Recommendations disseminated to entire provincial leadership; used as inputs to provincial economic planning and strategy documents
Fostering More Inclusive Growth The Story of the Philippines Context and Issues • Slow growth a long-standing problem for slow progress in poverty reduction. • But even with acceleration in growth between 2000-2007, poverty did not decline – actually increased from 30 to 32.9 percent between 2003 and 2006. Diagnostics • Analysis shows deterioration in income distribution with growth due to: • Unequal sectoral distribution of growth • Unequal pattern of regional development • Decline in relative price of labor of the poor • Unequal distribution of human capital and access to social services • Recommendations • Specific recommendations around a broad strategy for Inclusive Growth • Enhancing income opportunities (e.g. fiscal, agriculture, labor market, financial sector and competition policy reforms) • Assisting households to participate in markets (e.g. health, education/skills, social protection policy reforms)
Fostering More Inclusive Growth The Story of the Philippines The study • Set-up as part of AAA cluster led by HD and multi-sectoral programmatic AAA (FY08-FY10) led by HD and PREM, with collaboration of SDN and EXT. • ESW informed early engagement with new administration (elections May 2010) • Provided multi-sectoral analytical input into other flagship ESW, Philippines Discussion Notes for the Incoming Government. • Formed the basis of Inclusive Growth Forum with several key Cabinet Secretaries and attended by development partners and civil society. • Input into the Medium Term Philippines Development Plan (2010-2016) now entitled Inclusive Growth and Poverty Reduction • Government acting on key recommendations regarding labor, health, education and social protection; considering recommendations in agriculture. • Study also informed development of CAS and Bank program.
Inclusive Growth and HDConclusions • Fostering growth with equity a key issue for client countries (and esp. for MICs). • Human Development is a critical component of this agenda. • The HD Network is well-placed to work cross-sectorally with other networks to address these issues – both on issues that directly fall under HD remit (e.g. health, education/skills, labor market) – and broader topics such as poverty and vulnerability, governance and service delivery, and access to opportunities.