Experts push inclusive growth, social protection agenda in E. Asia

MANILA, Philippines - Economic growth must be inclusive and sustainable, and that measures for social protection must be part of the agenda of governments in the region, experts on Friday said in a panel discussion at the recently concluded World Economic Forum (WEF) on East Asia.

Income inequality remains a challenge, said Naoyuki Shinohara, deputy managing director of the International Monetary Fund (IMF), during the round table session titled Rethinking Economic Growth.

 â€œIf you look at programs in Europe, measures for social protection and the issue of social inclusion is part of the agenda,” Shinohara said.

Shinta Widjala Kamdani, chief executive officer of the Sintesa Group of Indonesia, said the role of WEF is important in integrating processes that would lead to inclusive growth.

“We in Indonesia see how we can bring this (inclusive growth) forward. The role of WEF is very important in integrating these processes,” Kamdani said.

Fu Jun, executive dean and professor at Peking University in China said a change in mindset among governments is very important for growth.

“Income inequality is rising in Asia especially in countries with large populations and this is the issue that the countries in Asia need to deal with. It is a global issue,” Shinohara said.

He said that fiscal policy plays a big role in economic development.

 â€œIf income inequality is high and that is associated with shorter duration of economic growth, you might be able to enjoy high growth for short period of time but not sustainable,” Shinohara said.

The 23rd WEF on East Asia took place from May 21 to 23, with the theme of the meeting is Leveraging Growth for Equitable Progress.

The co-chairs of the WEF on East Asia are: Yolanda Kakabadse, president, WWF International, Switzerland; Takeshi Niinami, chairman, Lawson, Japan; Global Agenda Council on the Role of Business; Atsutoshi Nishida, chairman of the board, Toshiba Corp., Japan; and James T. Riady, chief executive officer, Lippo Group, Indonesia.