Abstract
Evidence-based economic policies — pragmatic policies that work — played a major role in Asia’s success in raising its living standards in the last half century. However, growth prospects are now threatened by rising income inequality and environmental degradation if Asia continues on its established growth path. Evidence strongly argues for Asia to broaden its development priorities into a triple bottom line: that is, a focus on growth, social inclusion, and environmental sustainability.The paper focuses on how Asia can manage this ambitious goal. Possible resistance from vested interests is to be anticipated, but pursuing this path could bring large overall gains. The paper looks at how Asian governments and their development partners can make a difference in promoting the three policy objectives. Innovations in governance for better accountability, transparency, and feedback will be necessary for achieving these priorities.Societies in Asia and the international community will also need rigorous evidence and analysis to establish the benefits of this strategy and to make informed policy choices. International financial institutions and the donor community can provide financial lubricants for cooperation, as well as knowledge to help governments counter vested interests and champion regional perspectives on transborder issues.Reversing the negative social and environmental trends has to become a real development priority rather than a mere aspiration. Progress is possible on the three bottom-line goals, but it will require focusing Asia’s vaunted methods of learning and innovation to meet the new challenges.
Highlights
Societies in Asia and the international community will need rigorous evidence and analysis to establish the benefits of this strategy and to make informed policy choices
Similar strategies emerged in Indonesia, Malaysia, and Thailand, and still later in the People’s Republic of China (PRC), the Philippines, and Viet Nam
Economies are seldom distortion-free, and some common, large distortions in Asia and other regions work against inclusion and sustainability as well as economic growth
Summary
Asia’s diversity defies the easy generalizations that are sometimes used in proposing an “Asian development model.” Still, there is an underexplored commonality behind the region’s remarkable economic successes: the adoption of evidence-based policy making. There is an underexplored commonality behind the region’s remarkable economic successes: the adoption of evidence-based policy making This concept is relatively new in the development literature, but pragmatism, flexibility, and gradualism— fundamental elements of evidence-based policies—have been long recognized as characteristic of Asia’s successful economies. In these countries, policies were based on results and adjusted to changing circumstances. Governments played a central role in most Asian success stories They did not necessarily do so with direct expenditures or state-owned sectors, but those examples exist. Some measures were provided selectively, while others, such a generous trade credit, were directly tied to performance.
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