Any discussion or strategy about poverty reduction invariably invokes the term inclusive growth. This is particularly true in developing Asia, where years of economic growth have not always translated into higher quality of life for the poor. Some economists and development experts argue that one way to facilitate inclusive growth is for governments to increase public spending on equity-promoting social programs.
According to the Asian Development Bank, however, countries in Asia lag behind much of the rest of the world on critical socio-economic spending — a reality which holds major implications for the foreign aid and global development community.
In its latest outlook report for the region, the ADB notes that Asia’s public spending on education, health care and social protection is well below that from members of the Organization for Economic Cooperation and Development. Even Latin America — a region comparable to Asia in both income and development — spends more on equity-promoting programs than Asia.