WEF asks: Why is there growth but not equity?

Sushant Palakurthi Rao, WEF senior director and head of South East Asia.Photo by Cathy Miranda/lNQUIRER.net

MANILA, Philippines – Why is there inequality despite economic growth? That’s just one of the questions to be asked in this year’s World Economic Forum (WEF) on East Asia.

To be held for the first time in the Philippines, the WEF on East Asia will delve on issues pertaining not only the economy but also corruption and climate change.

Growth with purpose

East Asia growth “has led to millions of people being pulled out of poverty. The middle class is growing in the region; the trade within the region is also increasing,” said Sushant Palakurthi Rao, WEF senior director and head of South East Asia, in an exclusive interview with INQUIRER.net.

“But with that comes certain fundamental questions,” he said.

The WEF recognizes that while economies in the region are posting growth rates far above the global norms or averages, they also face difficult challenges such as rising inequality and widening income gaps.

“It has to be growth with a purpose. And that’s why we are convened here under the theme of ‘Leveraging Growth for Equitable Progress,’” Rao said.

Unpredictable future

He explained that what Asian countries should be focusing on are the needs of their growing populations in the face of an “increasingly unpredictable future.”

“The demands only increase as populations grow and as more people become part of the middle class. And that puts pressures on many different ways – to upgrade infrastructure, to improve education, to improve health systems,” he said.

Rao said the only way to catch up is to have change happen faster, taking into consideration the potential of technology and “hyper-connectivity.”

In addition to population growth, climate change is another pressing problem.

“Ultimately, we live in a climate-defined future…whether that’s measured in terms of rising ocean levels, the impact of rising temperatures, the impact it has on the food chain and food production,” he said.

Rao pointed out that the Philippines’ experience with Super Typhoon “Yolanda” (international name Haiyan) showed the vulnerabilities of the region.

“Whether that relates to how our cities are planned, how we grow the food for the growing population in the world, every leader will need to incorporate a sustainability framework into his or her thinking,” he said.

Disputes and partnerships

The senior director added that maritime disputes in the region are also a cause for concern since it results in political instability.

Nevertheless, he said East Asia and the Association of Southeast Asian Nations (Asean) have set remarkable benchmarks in trade liberalization, free trade agreements and regional cooperation.

“I feel confident that there are many different forms of partnership within the region, many different forms of dialogue which will surely be leveraged by the region’s leaders to address these points of difference,” he said.

Rao said the Asean, whose member states are composed of 600 million people, is one of the “best examples of partnership.”

He said it served as a precedent for future partnerships between Asean and its other strategic dialogue partners.

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