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1. Asia’s Extreme Inequality Crisis: Building back fairer after COVID-19

Author:
Matthew Martin
Publication Date:
09-2022
Content Type:
Policy Brief
Institution:
Oxfam Publishing
Abstract:
COVID-19 has exacerbated Asia’s crisis of extreme inequality. This is undermining growth and preventing poverty eradication. Asian governments have done almost nothing to combat this rise in inequality and are constrained in their policy choices as debt burdens grow and post-COVID austerity begins. A few Asian governments have done a lot to fight inequality during COVID-19 through equitable public services, progressive taxation and enhanced labour rights, especially for women, but most have not. This paper lays out a comprehensive set of measures that Asian governments, the Asian Development Bank and the international community could use to significantly reduce inequality, eradicate poverty and accelerate growth in Asia.
Topic:
Poverty, Governance, Pandemic, COVID-19, Banking, and Equality
Political Geography:
Asia

2. Strengthening Regional Energy Governance in the Mekong Subregion

Author:
Chen-Sheng Hong
Publication Date:
07-2021
Content Type:
Special Report
Institution:
Pacific Forum
Abstract:
This paper explores the energy trilemma problems in the Mekong subregion and explains the necessity for regional energy governance. The current governmental cooperative mechanisms are an ineffective approach to regional energy governance in the Mekong subregion and should thus be strengthened. Countries of the Mekong subregion are facing the following energy trilemma: energy security, energy poverty, and environmental sustainability problems. This paper argues that regional energy governance is needed in the Mekong subregion because the energy trilemma has transboundary externalities on the Mekong ecosystem and requires regional cooperation to be managed effectively. Effective regional energy governance is based on three components: coordination,general norms, and consideration of the regional context. The existing mechanisms for governance in the subregion are lacking these elements. This paper concludes with three policy recommendations. First, it is necessary to enhance coordination among the subregional mechanisms. By exploring mutual benefits to raise incentives for cooperation and by seeking third-party engagement, more effective coordination may be realized. Also, information sharing may be a way to enhance the mechanisms’ transparency and improve coordination. Strengthened information sharing will enable other subregional mechanisms to understand the scale of the mechanisms’ proposed investments and their impact on the whole subregion, as well as provide potential opportunities for cooperation. Second, it is essential to develop norms and standards for the optimal management of natural resources for energy-related activities. Developing norms and standards may keep nations from choosing norms that benefit themselves but not the whole subregion. Finally, considering the context of the region is important, especially whether the actors share a largely homogeneous ecosystem. If actors in a geographical space share a largely homogeneous ecosystem, considering the negative impacts of transboundary externalities, they will be more willing to make compromises and cooperate to manage the energy trilemma. This paper assesses the engagement of the Association of Southeast Asian Nations (ASEAN) and indicates that the lack of sharing a largely homogeneous ecosystem between mainland Southeast Asia and maritime Southeast Asia has weakened ASEAN engagement in solving the energy trilemma in the Mekong subregion. However, ASEAN should still increase its participation in the Mekong subregion’s energy sector. This would complement its efforts to push forward regional power integration plans such as the “ASEAN Power Grid,” “ASEAN Economic Community Blueprint,” and “ASEAN Master Plan 2025.”
Topic:
Security, Poverty, Governance, Sustainability, and Energy
Political Geography:
China and Asia

3. Serve the People: The Eradication of Extreme Poverty in China

Author:
Tricontinental: Institute for Social Research
Publication Date:
07-2021
Content Type:
Working Paper
Institution:
Tricontinental: Institute for Social Research
Abstract:
Grandmother Peng Lanhua lives in a two-hundred-year-old rickety wooden house in a remote village of Guizhou Province. Born in 1935, she grew up in a China that was under Japanese occupation and entered adolescence during the Chinese Revolution. Peng is one of the few people in her community who did not want to relocate as part of the government’s poverty alleviation programme when the government designated her house unsafe to live in. Since 2013, eighty-six other households whose houses were deemed too dangerous or for whom jobs could not be generated locally were moved to a newly built community an hour’s drive away. But Peng has her reasons for not moving. She is eighty-six years-old and lives with Alzheimer’s disease. In addition to low-income insurance and a modest pension, she receives supplemental income from a new grapefruit company that leased her family’s land. The company, whose dividends are distributed to villagers like Peng as part of the national anti-poverty efforts, was established to develop the local agricultural industry. Peng’s daughter and son-in-law live next door in a two-storey house they built with government subsidies. Her children are employed. In other words, her basic needs are cared for, and relocation is voluntary. ‘We can’t force anyone to move, but we still have to provide the “three guarantees and two assurances”’, says Liu Yuanxue, the Party cadre sent to live in the village to see that every household emerges from extreme poverty. He is referring to the government poverty alleviation programme’s guarantee of safe housing, health care, and education, as well as being fed and clothed. Liu visits Peng on a monthly basis, as he does with all the households in the village. Through these visits, he comes to know the details of each person’s life. ‘The floor is too messy’, Liu says, jokingly reprimanding Peng’s daughter-in-law as he enters the large wooden house. She is also a member of the Communist Party of China. On the wall, a poster of Chairman Mao and, next to him, President Xi Jinping, pay homage to two of China’s socialist leaders who bookend the course of Peng’s life. Below their portraits sit a weathered table and a dusty terracotta water jug, an internet router flashing green beside them. A string of ethernet cables and wires stretch to different corners of the house (each house gets free internet and CCTV satellite television for three years before a subsidised rate sets in). There are energy-saving lightbulbs in each room and a satellite dish installed next to Peng’s hanging laundry. An extension of the house was built with a toilet and shower equipped with solar-heated running water, the mud floor poured over with concrete. As Lenin said, ‘Communism is Soviet power plus the electrification of the whole country’. Strengthening the Party in the countryside and meeting the concrete needs of the people have been pillars in China’s fight against poverty. Liu’s visit to Peng’s house is just one everyday scene in that process. The fact that Peng has lived in this house for half a century is also a product of the Revolution; in the 1970s, during the Cultural Revolution, the house was confiscated from a rich landlord and redistributed to three poor peasant families, including Peng’s. That cadres like Liu visit her on a monthly basis, that her house has been made safe to live in through the recent renovations, and that there is internet to connect the poorest of rural villages with the world is a continuation of this revolutionary history. After all, ensuring that the country’s workers and peasants like Peng get housed, fed, clothed, and cared for is part of China’s long struggle against poverty and a fundamental stage in constructing a socialist society.
Topic:
Poverty, Governance, Inequality, and Socialism
Political Geography:
China and Asia

4. Behind Xi Jinping’s Declaration of Victory Over Poverty

Author:
Elizabeth Chen
Publication Date:
12-2020
Content Type:
Policy Brief
Institution:
The Jamestown Foundation
Abstract:
The Chinese state news organization Xinhua announced on November 23 that nine provinces in Guizhou had been lifted out of absolute poverty, marking the removal of all counties from China’s national list of most impoverished counties (Xinhua, November 24). About a week later, Chinese Communist Party (CCP) General Secretary Xi Jinping announced that China had achieved the goal of eradicating absolute poverty and becoming a “moderately prosperous society” (小康社会, xiaokang shehui) before the end of 2020 (China Daily, December 2; Xinhua, December 4).[1] This heralded a wave of triumphal propaganda. Xi stressed the “critical importance of continuously advancing global poverty reduction” during his remarks at the G20 Riyadh Leader’s Summit on November 22, and held up China’s imminent achievement of eliminating absolute poverty ten years ahead of the deadline set by the United Nations 2030 Agenda for Sustainable Development as a model for global emulation (Xinhua, November 23). Chinese official media frequently cited the praise of foreign experts, who were quoted as saying that China’s achievement “gave a hope to the developing countries” and represented a “great historic accomplishment” amid the COVID-19 pandemic (Xinhua, November 25, Xinhua, December 8) On December 14, Xi sent a letter of congratulations to the International Forum on Sharing Poverty Reduction Experience that said, “China stands ready to work with all countries in promoting the process of international poverty reduction and building a community with a shared future for mankind” (China Daily, December 14).
Topic:
Development, Poverty, Xi Jinping, and Domestic Policy
Political Geography:
China and Asia

5. Social Interventions, Health and Wellbeing: The Long-Term and Intergenerational Effects of a School Construction Program

Author:
Bhashkar Mazumder, Maria Rosales-Rueda, and Margaret Triyana
Publication Date:
12-2020
Content Type:
Working Paper
Institution:
Kellogg Institute for International Studies
Abstract:
We analyze the long-run and intergenerational effects of a large-scale school building project (INPRES) that took place in Indonesia between 1974 and 1979. Specifically, we link the geographic rollout of INPRES to longitudinal data from the Indonesian Family Life Survey covering two generations. We find that individuals exposed to the program have better health later in life along multiple measures. We also find that the children of those exposed experience improved health and educational outcomes and that these effects are generally stronger for maternal exposure than paternal exposure. We find some evidence that household resources, neighborhood quality, and assortative mating may explain a portion of our results. Our findings highlight the importance of considering the long-run and multigenerational benefits when evaluating the costs and benefits of social interventions in a middle-income country.
Topic:
Education, Health, Poverty, Inequality, Economic Growth, and Economic Development
Political Geography:
Indonesia and Asia

6. Financial Inclusion Through Fintech in the Digital Economy

Author:
Eunsook Seo and Kyeongwon Yoo
Publication Date:
12-2020
Content Type:
Special Report
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
Since the 2008 global financial crisis, including the recent COVID 19 pandemic, low interest rates and low economic growth have continued around the world. In spite of this low interest rate trend, as the economic downturn prolongs, there is a situation of concern called the “new normal” of low interest rates and low economic growth, and low prices. In this new normal economic structure, the rapid progress of aging is increasing the necessity and desire for asset accumulation. In addition, digital finance such as Fin-tech with the evolution of the underlying technologies and the emergence of new technologies has replaced or improved many functions of existing finance in the advent of the 4th industrial revolution era. These changes are expected to bring benefits to the individual and corporate finance sectors, which have been subject to financial inclusion. On the other hand, digital finance, which is changing at such a rapid pace, may further isolate some individuals who were in the blind spot of finance, such as the elderly, and a support system for this is an issue that should be included in the policy of financial inclusion in each country. In this paper we find that Asian countries like other regions have achieved tangible results in financial inclusion while achieving financial deepening. When looking through various financial inclusion indicators such as holding accounts and loans, ATMs, and bank branches, the Asian region has achieved similar or superior performance to other regions. Compared to the income level, the growth of financial inclusion in Asia was found to be attributable to better performance in middle-income countries than in other similar regions. High-income countries in Asia are performing somewhat lower than similar peer groups in other regions, but this seems to be due to stagnation of growth. More seriously, financial inclusion in low-income countries in Asia is not appearing faster than in other income groups. In Asian countries there appears to be a wide variation in regional financial inclusion. However, Asian countries are expanding around the younger generation in the use of ICT technology that is helpful in spreading financial inclusion so if digital inclusive finance centered on Fintech is properly applied, Asian countries will become a new model for digital financial inclusion. However, since the gap in the use of Fintech in the region is large, how to fill this gap is being raised as an important policy task for each country as well as the whole region. We also tentatively examined the effects of financial inclusion and digital financial inclusion in the Asian region using the Asian country panel data collected from WDI and Global Findex data. Looking at the implications of the empirical analysis results even though it is very cautious to interpret the results of this analysis due to the lack of data of inclusive finance in Asia., first, the expansion of financial inclusion(such as ATM) in Asia seems to have some relationship with the reduction of poverty rates and income inequality which is measured with Gini coefficient. And the expansion of internet usage in Asia seems to have some relationship with the reduction of poverty rates and income inequality although we use it as the proxy variables instead of the digital financial inclusion variables. Lastly, the higher share of rural population which is used as a proxy for digital divide, which may occur due to the expansion of digital inclusive finance in Asia, has the potential to erode some of these achievements, but there is still a possibility that the expansion of inclusive finance will be effective. Despite the likelihood of success in digital inclusive finance in the future, digital divide spreads due to various gaps such as between urban and rural areas, between young and old, between low and high income, and between men and women, occurring in Asian countries and may worsen the performance of inclusive finance. Thus the governments in the region need to actively intervene to resolve these gaps. In addition, it is necessary to close the digital gaps that is occurring between countries through policy cooperation among APEC members. Considering the situation that the degree of development of Fintech in each member is expanding financial inclusion, it is necessary for Korean financial companies to set up an advancement strategy that focuses on the financially marginalized class based on the advanced system strategy of credit rating based on big data. Our analysis results will give some implications for the New Southern Policy. Personal and SME finance are very important business areas when financial companies currently enter the ASEAN region, and accurate analysis of each member' current status for Fintech or digital finance and financial inclusion should be given priority in terms of business expansion.
Topic:
Poverty, Financial Crisis, Finance, Income Inequality, COVID-19, Inclusion, and Digital Finance
Political Geography:
Asia and Global Focus

7. The Poverty-Reducing Effects of Financial Inclusion: Evidence from Cambodia

Author:
Kimty Seng
Publication Date:
09-2020
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
This study analyses the effects of financial inclusion on poverty in terms of household income per capita in Cambodia, with data from the FinScope Survey carried out in 2015. The analysis describes the effects via financial literacy, accounting for endogenous selection bias resulting from unobserved confounders and for structural differences between users and non-users of financial services in terms of income functions. The findings suggest that the use of financial services is very likely to make a great contribution to reducing household budget deficits and poverty if the users, female in particular, have at least basic financial knowledge.
Topic:
Poverty, Inequality, Finance, and Financial Services
Political Geography:
Asia and Cambodia

8. Financial Inclusion, Active Bank Accounts and Poverty Reduction in India

Author:
Tony Cavoli, Ilke Onur, and Patricia Sourdin
Publication Date:
09-2020
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
Using the World Bank’s Global Findex data, this research first shows that the efforts by the Indian Government and the Reserve Bank have been successful in providing access to formal banking services, especially in the rural areas of the country. Similarly, financial account ownership gap has been eliminated in terms of gender and income. Further analysis, using the Financial Inclusion Insights dataset, shows that financial inclusion has a positive and significant effect on reducing poverty in India. A closer look at the utilisation of the financial accounts shows that active usage of these accounts would lead to further reductions in poverty levels in India. Therefore, targeted programmes, such as offering financial education both in and outside schools, with the aim of improving financial literacy, could lead to further poverty reduction in India.
Topic:
Education, Poverty, Finance, and Banks
Political Geography:
India and Asia

9. Fighting Imagined Invasions with Administrative Violence. Racism, Xenophobia and Nativism as a Cause of Statelessness in Myanmar, the Dominican Republic and Assam (India)

Author:
Jose-Maria Arraiza, Phyu Zin Aye, and Marina Arraiza Shakirova
Publication Date:
12-2020
Content Type:
Journal Article
Journal:
Statelessness & Citizenship Review
Institution:
Peter McMullin Centre on Statelessness, Melbourne Law School
Abstract:
Discriminatory policies have the capacity to create statelessness on a massive scale and the majority of stateless persons around the world belong to impoverished minority communities. The intentionality of such discrimination is guided by xenophobia, racism and particularly nativism: the belief that an internal minority with foreign connections is a threat to the nation. Hence, target communities are re-imagined as an enemy invader. This article analyses and compares how such ideologies have resulted in statelessness in the cases of Myanmar, the Dominican Republic and the State of Assam in India. These three scenarios have internal minorities (Rohingya in Myanmar, ethnic Haitians in Dominican Republic and Bengalis in India) that have been represented, based on kinship lines with neighbouring states, as enemy intruders by public officials and institutions. The authors compare how in the three scenarios nativist policies, the erosion of jus soli in citizenship laws and administrative violence have been used to ‘fight’ these imagined invasions and identify common trends.
Topic:
Poverty, Citizenship, Discrimination, and Stateless Population
Political Geography:
India, Asia, Burma, Caribbean, Dominican Republic, North America, and Myanmar

10. More Is Possible Now to Address North Korea’s Health and Humanitarian Needs

Author:
J. Stephen Morrison
Publication Date:
02-2019
Content Type:
Working Paper
Institution:
Center for Strategic and International Studies
Abstract:
As President Trump and Kim Jong-un meet for their second summit in Hanoi, will there be serious consideration given to what concrete actions can be taken to protect and advance a health and humanitarian agenda that can directly benefit North Korea’s impoverished majority and reduce the threat of a runaway tuberculosis (TB) outbreak? Perhaps. Certainly, let’s hope so. There is much that can be done.
Topic:
Foreign Policy, Health, Poverty, and Humanitarian Crisis
Political Geography:
Asia, North Korea, North America, and United States of America