POVERTY: UN Asia Pacific Chief: Corruption Feeding Poverty, Halting Social Development

Ron Corben : Bangkok May 22, 2011
 Photo: AFP
The UN's executive secretary for the Asia and Pacific Economic and Social Commission, Noeleen Heyzer (file photo)

A senior United Nations official says corruption across Asia is undermining efforts to fight poverty and reduce income disparities. In a wide ranging interview with VOA, Dr. Noeleen Heyzer, the UN’s executive secretary for the Asia and Pacific Economic and Social Commission, said countries must invest in what she called social protection to ensure economic growth in Asia.
“You know the issue is governance. Because at the end of the day you need economic governance. You need better political governance because to be able to have systems that invest in the social foundations of your communities in order that people can have a better life. And obviously any forms of corruption acts against that.”
The Asian Development Bank recently called for improvements in government accountability as “critical” in Asia to maintain social and political stability. It said rising corruption was evident in a “deterioration in the quality and credibility of national political and economic institutions.”
A World Bank Institute report warned of a retreat in accountability and political stability in Asia between 2008 and 2009. In India, for example, the World Bank found only 40 percent of government funds allocated for poverty-related programs actually reached the poor. The remainder, the Bank said, was lost because of bad administration and corruption.
Dr. Heyzer warned that despite recent regional economic gains, widening income disparities needed to be addressed by governments through improved social protection programs.
“What we have seen is that in Asia you have high economic growth but you also have growing inequalities and disparities. And the only way to deal with that is to ensure inclusive growth, to invest in social protection in making sure that for the for the first time this continent can rethink itself and reinvest in itself in terms of taking on the social perspective and dimensions.”
Economic analysts say the Asia Pacific region is an important driver of global growth. But Dr. Heyzer says Asia still faces several challenges to ensure the gains are widely shared.
“Closing the disparity gaps would be critical. How do you sustain growth, but at the same time how do you ensure that this growth is inclusive. We have economic recovery but this recovery is still fragile. There’s going to be major concerns about inflation - there is still a major concern about asset bubbles, capital inflows, and it’s critical to sustain that economic growth.”
In a recently released economic survey UNESCAP forecast Asia Pacific developing economies to grow by more than seven percent for 2011, with China and India expanding at close to nine percent. But the report said inflation remains a concern, due to rising food and energy prices, with the poor especially vulnerable.
http://www.voanews.com/english/news/economy-and-business/UN-Asia-Pacific-Chief-Corruption-Feeding-Poverty-Halting-Social-Development--122411694.html

POVERTY: India: Playing with Poverty Statistics

May 17 2011
 Ranjani Iyer Mohanty is a writer and a business/academic editor. Her articles have been published in various international newspapers and magazines.


The poverty line for a given individual can be defined as the money the individual needs to achieve the minimum level of ‘welfare’ to not be deemed ‘poor,’ given its circumstances.”
This is how Martin Ravallion, director of the Development Research Group at the World Bank, defines the poverty line. In 2005, the World Bank revised the international poverty line up from $1 a day to $1.25 a day, but countries are allowed to set their own national poverty line. The Planning Commission has set India’s national line at 578 rupees a month, or the equivalent of 43 U.S. cents a day.
Even assuming only a charitable (to the government, that is) 30 days a month, that works out to less than 20 rupees a day. A half-litre packet of milk at Mother Dairy costs 10 rupees. One mango, those in season and heaped on carts by the side of the street, costs 10 rupees. And a cabbage …but no, your 20 rupees a day has already been spent. If you spend more than that, even on clothing or education or fuel, you cannot be termed as below the poverty line and therefore you are not eligible for BPL-related benefits and subsidies on food, shelter, and medical treatment. And note that the luxurious 20 rupees a day is for city dwellers; rural people have to spend less than 15 rupees a day in order to be below the poverty line.
The absurdity of such a low poverty line is astounding. Even the World Bank, which does not usually comment on national poverty lines, feels that India’s is too low and was hoping for a more realistic peg at $1.17 a day. Many concerned individuals have called India’s poverty line the “starvation line.” In fact, it is tending more toward the flat-line on a cardiac monitor.
The Multidimensional Poverty Index (developed by the Oxford Poverty & Human Development Initiative) puts the number of poverty-stricken Indians at 645 million. A recent report by the Asian Development Bank says rising food prices will push a further 30 million Indians below the poverty line of $1.25 a day. According to the National Family Health Survey (2006) by the Government of India, the child malnutrition rate is 46%, which human rights lawyer Colin Gonzalves says translates into a horrific 2,500 child deaths every day.
Are the members of the Planning Commission living in India in 2011? Why this total disconnect with reality?
Now I know some will argue and say: “Hey, stop picking on the Government of India! Can’t you see they’re trying to do their best … for themselves, that is? So what if they spend money on seemingly unimportant things (like the Commonwealth Games, unnecessary signs, and personal security guards) and remain impassive while some of their colleagues are filling their Swiss bank accounts and lining their own pockets with our tax dollars? Besides, the state governments are at fault, too. And I earn way more than 578 rupees a month anyways – in fact, I spend almost that much on a cup of coffee whenever I stop in at 360 at the Oberoi. So what do I care about what or where the poverty line is or who’s under it? Let them eat cake.”

I think I’ve heard those famous last words somewhere else before.
But a second look at this whole issue got me doing a re-think: If we can have a floating exchange rate and a floating gold price, why not a floating national poverty line? It could actually be a big advantage in lowering our poverty rates.
While having the international poverty line at $1.25 a day may show India as having some 600 million people below it, simply moving the national poverty line to 43 cents a day reduces those below the poverty line to about 440 million. In fact, if the Planning Commission revises the poverty line to 20 cents a day, they can reduce poverty yet again. Of course, they could drop the national poverty line to 1 cent a day and thereby eradicate poverty in India altogether.
Learning from the wisdom of the government, I’ve decided to adopt similar measures for a more personal problem. I’ll be turning 50 next month … but that sounds rather old. So instead of accepting that reality and taking practical steps – like putting aside funds for later years or taking better care of my health – I’m going to pretend I’m living on Mars and then, using the Martian measurement of time to calculate my age, I can say I’m just a sprightly 26 years. Of course, I may die before I’m 40, but at least I can live and die under a happy illusion.
http://blogs.wsj.com/indiarealtime/2011/05/17/india-journal-playing-with-poverty-statistics/

POVERTY: Pakistan: Asian Development Bank said economy faces considerable challenges

Peer Muhammad : April 7, 2011

An ADP report, Asian Development Outlook 2011, has termed recent fiscal developments as worrisome – the rollback in oil price rises, a partial increase in electricity tariffs, delays in carrying out revenue-increasing measures, broad tax exemptions for residents of flood affected areas, and continued heavy fiscal support to state-owned enterprises will add to pressures on the fiscal deficit.



Addressing a press conference on the launch of the report, ADB Country Director Rune Stroem said Pakistan’s GDP growth for fiscal 2011 would be around 2.5 per cent, while inflation would remain high due to rising international oil prices.
Stroem informed that the bank’s total disbursements to Pakistan during calendar 2010 stood at $799.18 million – 17 per cent higher than the $683.28 million projected.
Pakistan has made a modest recovery in 2010, while strong fiscal pressure has continued due to an underachieved revenue target, and significantly lower external financing inflows, coupled with higher expenditures, he explained.
The government should implement structural policy measures to support long-term growth by enhancing revenue generation, broadening the tax net, containing circular debt in energy and commodity sectors, and reducing the burden of losses from state-owned enterprises, said Stroem.
He warned that the government’s fiscal deficit of 5.5 per cent during the current fiscal year was unrealistic and would increase further if rectifying measures were not taken.
He called on the government to raise the tax-to-GDP ratio, which stands at 9 per cent, in to double figures in order to generate revenue.
Inflationary pressure is still dominant and could cross 16 per cent in the next few months. The government must address inflationary pressures from both, the demand and supply sides, as global oil price increases risk higher inflation.
Stroem said repayment of the International Monetary Fund (IMF) loan from next year would also build pressure on the exchange rate, and stressed on greater private investment in infrastructure and the manufacturing sector.
“Shortage of energy alone is causing a two per cent reduction in the GDP growth rate; however, it is not the right time to privatise loss-making, state-owned enterprises, and the government should induct professional management to make them profitable,” explained Stroem.
Responding to a question, he said that further loans were dependent on negotiations between the government of Pakistan and IMF.
“There is a link between political reality and economic progress. Overall revenue collection is slipping away compared with the target, whereas total expenditures to the security arrangements are increasing,” said Stroem.
He pointed out that food inflation and fuel costs were increasing gradually, but expected Pakistan’s economy to build on initial signs of recovery, while calling for proper documentation of the economy.
http://tribune.com.pk/story/144558/adb-report-paints-grim-poverty-fiscal-deficit-picture/

POVERTY: Thailand’s land reform proposal to fight poverty

February 20, 2011
The biggest problem in Thailand now is that real issues can get easily overshadowed and overwhelmed by what has become a complete power play, and then forgotten or cast aside by everyone who matters.
A land reform proposal submitted by the Anand Panyarachun committee with little political fanfare stands to test this malaise. We will know in the next few days if the proposal, which is worth serious attention by all, will be spurned by movements that want the prime minister to leave immediately but dont quite know why, and by a government that is trying to hang on but doesnt quite know how.
The red shirts violent campaign last year, whether it was a real grass-roots uprising as the movement claims or a Thaksin Shinawatra-sponsored agitation as alleged by the Democrat government, has brought to light the issue of economic inequality in Thailand. This forced the government, academics and civil society to look back on long-forgotten problems, one of which is the poverty associated with being landless. The embattled Abhisit government promised to act, and the Anand committee was formed.

The proposals on land reform deserve attention.
Dr. Ravi Ratnayake, Director of the Trade and Investment Division of ESCAP, said that promoting agricultural trade in the Asia-Pacific region is important for addressing poverty in Asia and the Pacific, where over 70 percent of the poor live in rural areas and have agriculture as their main livelihood.
With rising populations and the emergence of relatively affluent population segments seeking dietary diversity, the demand for food products in general, and high-value processed food in particular, has been rising. He noted there is a great potential for agricultural exports in the region.
Analyzing constraints to agricultural exports, senior policy makers, academics, exporters, logistics providers, and UN and Asian Development Bank (ADB) experts at the High-level Consultation on Facilitating Agricultural Trade in Asia and the Pacific organized in Bangkok by ESCAP this week noted that the rapid emergence of stringent private standards for food products in the West has become a major challenge. There are significant gaps in quality infrastructure and technical know-how that prevent developing countries to meet these standards. They emphasized the need for regional cooperation in building capacity and developing mechanisms for accreditation of testing facilities.
http://thailand-business-news.com/news/29142-agricultural-trade-is-key-to-poverty-reduction-and-food-security-in-asia-and-the-pacific

POVERTY: ADB will continue to work with Nepal to reduce poverty

 29 October 2010
The Asian Development Bank (ADB) has said it will continue to work closely with the Government of Nepal and stakeholders in reducing poverty and promote inclusive growth for all Nepalis.
Such a commitment has come from the Bank's director general for South Asia department, Sultan H. Rahman, who completed his three-day official visit to Nepal.
According to a statement issued by Nepal Resident Mission (NRM) of the ADB, Rahman's commitment to assist Nepal is in line with its Country Partnership Strategy 2010 - 2012 for the country, which is anchored in the four strategic pillars of broad-based inclusive growth, social development, governance and capacity building and climate change.
"We will continue to focus on these core areas in our efforts to help alleviate poverty and uplift the standard of living of Nepalis, the majority of whom still have to make ends meet," said Rahman, who headed NRM from 2003-2006.
According to him, the ADB has been closely following the developments in Nepal with keen interest and appreciates the challenging and complex political transition the country is undergoing.
He further mentioned, "Nepal still faces formidable development challenges. It must transform the challenges into opportunities by consolidating the peace process and focusing on effective implementation of projects on the ground."
While in Nepal, Rahman met with Prime Minister Madhav Kumar Nepal, Deputy Prime Minister and Minister for Physical Planning and Works, Finance Minister, the governor and other senior Government officials, among others. nepalnews.com
http://www.nepalnews.com/main/index.php/business-a-economy/10159-adb-will-continue-to-work-with-nepal-to-reduce-poverty.html