Inequality rears its ugly head once again in east Asia. The Asian Development Bank is now investing
money into education and health to help deal with the growing inequalities. In
east asia there are 830 Million people living on less than $1.25 a day and the
gap in continues to grow. The Gini Coefficient, which measure inequality, shows
a growth from .36% - .47% over the past 20 years.
The Asian Development Bank usually focuses on infrastructure
projects, such as building transportation ways, dams, etc. The bank believed
that improving these areas would help to decrease poverty and over all improve
the quality of life. That was not the case. The bank plans to focus more on
“inclusive growth” in their Strategy 2020.
In ADB’s 2011 annual report only 4% of the total loans went to education
and health care while 69% of the bank loans went towards infrastructure: energy, technology, etc.
Rajat Nag, ADB’s managing director general said “We will have
to invest in health and education to make sure people are skilled enough and
well enough to benefit from growth”. He
says that ADB is working social protection system, much like India. India
started the Mahatma Gandhi National Rural employment guarantee in 2005. It
promises 100 days of employment annually to adult members of rural households.
China’s voluntary “Rural Co-operative Medical Scheme” wants
to provide 800 million people with health care in rural areas. World Health organization says that the
scheme appears to “have successfully provided some protection against the
impoverishing effects of illness in rural China and to have reduced
out-of-pocket health spending.”
Last but not least he bank is concerned about the effects of
natural disasters. The bank has asked the government to “develop and implement
comprehensive disaster risk financial resilience.”
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