framework of inclusive growth indicators 2013: key indicators for asia and the pacific

7/27/2019 Framework of Inclusive Growth Indicators 2013: Key Indicators for Asia and the Pacific

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2013 Asian Developmen Bank

All rigs reserve. Publise in 2013.

Prine in e Pilippines.

ISBN 978-92-9254-242-9 (Prin), 978-92-9254-243-6 (PDF)

Publicaion Sock No. RPT135929-2

Caaloging-In-Publicaion Daa

Asian Developmen Bank.

Key inicaors for Asia an e Pacific 2013: Framework of inclusive grow inicaors, special supplemen.Manaluyong Ciy, Pilippines: Asian Developmen Bank, 2013.

1. Inclusive grow. 2. Inicaors. I. Asian Developmen Bank.

Te views expresse in is publicaion o no necessarily reflec e views an policies of e

Asian Developmen Bank (ADB) or is Boar of Governors or e governmens ey represen.

ADB oes no guaranee e accuracy of e aa inclue in is publicaion an acceps no responsibiliy for any

consequence of eir use.

By making any esignaion of or reference o a paricular erriory or geograpic area, or by using e erm

counry in is ocumen, ADB oes no inen o make any jugmens as o e legal or oer saus of any

erriory or area.

ADB encourages prining or copying informaion exclusively for personal an noncommercial use wi proper

acknowlegmen of ADB. Users are resrice from reselling, reisribuing, or creaing erivaive works for

commercial purposes wiou e express, wrien consen of ADB.

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1550 Mero Manila, Pilippines

Tel +63 2 632 4444

Fax +63 2 636 2444

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Foreword

dW

o lea global grow espie a slowown in evelope economies since 2008. Ye, evience on growing

grow a prioriy for eveloping Asia.

Te Framework of Inclusive Growth Indicators 2013 (FIGI 2013) is e 3r


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Contents

Forewor .................................................................................................................................................................. iii

Guie For Users.......................................................................................................................................................viii

....................................................................................................................................ix

Higligs of e Framework of Inclusive Grow Inicaors ....................................................................................xi

SPCIAL SUPPLMNT

Framework of Inclusive Growt Inicators

Part I. A Progress Assessment of te 1990s an 2000s in eveloping Asia ........................................................... 1

1. / ......................................................................................................................................................... 3

2. Te Meoology ................................................................................................................................................. 5

3. W^/ ......................................................................................... 64. W/ ............................................................................................................. 17

5. W///

A Summary ....................................................................................................................................................... 19

6. Conclusions ........................................................................................................................................................ 19

W//d ................................................................... 25

Poverty an Inequality........................................................................................................................................... 27

Income Povery .................................................................................................................................................. 27

Nonincome Povery ............................................................................................................................................ 29

Policy Pillar One: Growt an xpansion of conomic Opportunity .................................................................... 32

' ................................................................................................................... 32


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vi Contents

Table 2.2 Nonincome Povery an Inequaliy .................................................................................................... 52

d ' ................................................................................................... 58

d WWW>z ............... 27

& Z/^>

>z .................................................................................................................. 28

& EZhWZ>z ................................................................ 28

Figure 2.4 Average Years of Toal Scooling, You, Male an Female, 2010................................................... 30Figure 2.5 Prevalence of Unerweig Cilren uner Five Years of Age, Toal, Lowes an Higes

t>z .................................................................................................... 31

& h&Z>>t

Laes Year ....................................................................................................................................... 31

& 'Z'WWWW ............................................... 32

& 'ZW/WWW>W ............. 33

& E&t

Laes Year ....................................................................................................................................... 33

& tEz ..................................34


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Contents

& EW^W>z ............................ 35

Figure 2.12 Deposiors i Commercial Banks (per 1,000 Auls), 2004 an 2011 or Neares Years .............36

& ^>Ez ..........................................................37

& WEW>z ........................................... 38

& ddWdW/z

>t>tZ>z ........ 39&

^Wh^&Ez

2010 or Laes Year .......................................................................................................................... 40

& WWdZh .............................. 41

& WWh/^&dhZ ...........42

& 'WW^d>z .......................................... 43

& W^tEWEz ...........44

& >>

t>tZ>z ........................................ 45

& ^^W'

1995 an 2011 or Neares Years ..................................................................................................... 47

& '^^tWd' Ez ............................................................................... 47

& ....................................................................................................... 49

& ' ..................................................................................................... 49

& ............................................................................................................ 49

.................................................................................................................................................... 81


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iii

Guide for Users

Key Symbols

aa no available

0 or 0.0 magniue is less an alf of uni employe

n.a. no applicable

Measurement Units

t

ata Sources

d///

/

&

^dZ

In par I, summary ables on improvemen inexes of e 45 economies of eveloping Asia uring e 1990s an

&/'/ / //

Te 48 economies in e ables are broaly groupe ino 45 eveloping members an 3 evelope members

Ed

d

//

d

inercangeably wi economy, is no inene o make any jugmen as o e legal or oer saus of any erriory

or area.

//

d

//d

referre o as e earlies year (usually a year beween 1990 an 2000) an laes year (usually any year closes o

^

earlies year an e laes year. Tis is because e years for wic aa are available vary wiely across counries.

Te acual years wic e aa relae o are inicae in e ables a are use as sources for e cars.

/ W /W/ d /

&/'/d

tt'/

d

W/d/

values of CPI no comparable wi earlier years. Te counry scores in CPI 2012 range from 100 (very clean) o 0 (igly

corrup), an canno be compare o ose from 2011 or previous years, wic range from 10 (very clean) o 0 (igly

corrup).


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Abbreviations and Acronyms

ADB Asian Developmen Bank

AFG Afganisan

ARM Armenia

AUS Ausralia

BAN Banglaes

BHU Buan

BRU Brunei Darussalam

CAM Camboia

/

CPA counry performance assessmen

DHS Demograpic an Heal Survey

DTP3 iperia, eanus oxoi, an perussis

FIGI Framework of Inclusive Grow Inicaor

FIJ FijiFSM Feerae Saes of Micronesia

'W

' '

' '

HKG Hong Kong, Cina

/d

/ /

/ /

/> />

/& /&

IND Inia

/E /

/dh /dh

JPN Japan


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x

PAL Palau

PHI Pilippines

PNG Papua New Guinea

PPP purcasing power pariy

WZ WZ

RMI Republic of Marsall IslansSAM Samoa

SIN Singapore

^>

^> ^/

^W ^W

SRI Sri Lanka

TAJ Tajikisan

TAP Taipei,Cina

THA Tailan

TIM Timor-Lese

TKM TurkmenisandE d

dh d

h/^ hE^/^

hE hE

hEW hEW

hE^ hE

hE/& hE&

hE^ hE^

h h

E

/ E

GI orlwie Governance Inicaors

t t

tWW tWW

thW thW

hh^


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Highlights of the Framework of Inclusive Growth Indicators

Te Asia an Pacific region as experience e fases grow in e worl in recen ecaes, an as coninue o

lea global grow espie slowown or recession in evelope economies since 2008. Ye evience abou growing

ispariies in income an nonincome oucomes an access o opporuniy as cause concern, making inclusive

grow a prioriy for eveloping Asia.

Te publicaion Framework of Inclusive Growth Indicators (FIGI), launce in 2011, presene a framework

of 35 inicaors were povery an inequaliy oucomes of inclusive grow are measure by ree income- an

ree nonincome-relae inicaors for assessing progress on income as well as nonincome povery. Te povery

an inequaliy oucomes are o be acieve roug ree policy pillars a promoe: (i) susaine ig grow

an creaion of proucive jobs an economic opporuniy, (ii) social inclusion o ensure equal access o economic

opporuniy by increasing uman capabiliies, an (iii) social safey nes o proec e cronically poor an o miigae

e risks an vulnerabiliies of people. Te progress on ese pillars is measure by a se of 26 quaniaive inicaors.

Policies for inclusive grow are suppore by goo governance an insiuions, wic in urn are measure by

anoer se of ree inicaors.

Te 2 ecaes1990s an 2000salso saw big callenges for e Asian region. In e early 1990s, economic

grow ecline in mos economies in Cenral an es Asia; an in e laer par of e 1990s, financial crisis i

/

financial crisis since 2008 aversely affece many exporing economies in Asia. Te series of callenging crises as

well as inernal facors an policies ave impace e social an economic progress in economies of eveloping Asia

over e 2 ecaes.

FIGI 2013 as wo pars. Par I aemps o race ow economies of eveloping Asia ave progresse in eac

of e 2 ecaes of e 1990s an 2000s in 20 selece inicaors of FIGI base on improvemen inexes for eac

ecae, an o see if e improvemens in e 2000s accelerae over e improvemens in e 1990s. Par II conains

upae saisical ables an sor commenaries for rens in 35 FIGI inicaors for e regional economies in Asia.

Part I. A Progress Assessment of te

1990s an 2000s in eveloping Asia

Te main objecive of Par I is o assess e

improvemens in e performance of eveloping Asia

on 20 selece inicaors of FIGI in e 1990s an 2000s

an o see if e improvemens in e 2000s accelerae

over ose in e 1990s. Tis is parially inspire by e

Millennium Developmen Goals (MDG), were mos

counries agree o improve eir social an economicconiions significanly by 2015. However, e FIGI is no

an assessmen of e MDGs.

Metoology an ata

Improvemen inexes using e Kakwani (1993)

2 ecaes using 20 selece inicaors of FIGI for

economies of eveloping Asia wi sufficien aa

poins. Te meoology allows e variables o be

convere ino uni-free inexes. Tis meoology

also ajuss for effors neee o furer improve

e performance of an inicaor as e inicaor

approaces is iges possible level. A posiive

improvemen inex enoes a real posiive

improvemen in e inicaor wile a negaive inex

enoes eerioraion in e inicaor.

d

secon as close as possible o 2000, an a ir as

improvemen inexes for 2 ecaes for eac

inicaor.

An acceleraion in e improvemen inex is


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xii ighlights of the Framework of Inclusive Growth Indicators

e improvemen inex in e 2000s from e

1990s. A eceleraion is a ecline in e value of

d

progress is consiere mainaine if e value of

e improvemen inex of e 2000s is wiin +-

W

for most inicators in most economies of

eveloping Asia

Progress acieve in e 2 ecaes iffers among

economies an regions. No counry performe

well in all inicaors in bo ecaes, bu clearly,

economies ave acieve improvemens in a far

greaer number of inicaors an eerioraions in

bo ecaes.

Tiry economies a more number of inicaors

wi posiive improvemen inexes in e 2000s

an in e 1990swi anoer 5 economies

aving e same number of inicaors wi

posiive improvemen inexes as in e 1990s.

Major improvemens in e 2000s over e 1990s

(more an one-four aiional inicaors aving

posiive improvemen inexes) were acieve

'


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ighlights of the Framework of Inclusive Growth Indicators

fall in per capia consumpion of elecriciy, mos

bounce back in e 2000s, wi iger per capia

income grow. You employmen-o-populaion

raios sow consisen eclines in bo ecaes,

wi even faser eclines in e 2000s in some cases.

Among e inicaors of policy pillar 2 (social

inclusion for equal access), significan gains ave

been mae in e 2 ecaes in improving scool

life expecancy (excep in Cenral an es Asian

economies uring e 1990s, wic winesse a fall

in scool life expecancy) wi many acceleraions

in e 2000s. Mos economies also successfully

in 22 economies in e 2000s.

Gener pariy in primary eucaion as improvesignificanly in e 2 ecaes, bu gener pariy in

labor force paricipaion as sown eerioraion

in many economies paricularly in e 2000s. Tis

inclue e wo mos populous economies of

e PRC an Inia. Tis reaens o isor e

composiion of e labor force an inclusiveness

employmen.

Progress as been noewory in improving access

o clean rinking waer sources, incluing in e

rural areas in almos all economies in bo e

1990s an e 2000s. Similar rens of posiive

improvemen inexes are seen for access o safe

saniaion bu a a muc slower pace an for

rinking waer. Tree-fours of e counries ave

accelerae improvemens in e 2000s in proviing

access o an improve rinking waer source an o

an improve saniaion faciliy.

Te inicaor on pillar 3 (social safey nes) suggess

some improvemens in social securiy expeniures

on eal by governmens.

Lasly, negaive improvemen inexes for inicaors

of voice an accounabiliy anor governmen

effeciveness in many economies of eveloping Asia

in e 2 ecaes poin o e nee for improve

governance an more accounable insiuions.

Tis mig be one of e mos persisen callenges

owar more inclusive grow in e region.

Conclusions

Some key conclusions observe from e improvemen

inexes in e 2 ecaes are e following:

consumpion, an scool life expecancy appear

o move ogeer; an improvemens in eal

(as inicae by consisen reucions in e cil

moraliy raes), an improvemens in infrasrucure

of saniaion an rinking waer appear o ave

aken place irrespecive of e pace of economic

grow. Tis was evien mosly in e Cenral an

es Asian economies wen ese counries face

recession in e 1990s an en recovere in e

2000s.

Counries a ave successfully reuce povery

bu ave winesse increasing income inequaliy

will nee policies especially esigne o expan

job opporuniies an access o social services an

infrasrucure for regions an populaions a are

lef bein o promoe inclusive grow.

Furer, for an economic grow a provies

equal opporuniies o all, innovaive policies

an approaces will be neee. For example,

cellular pones ave immense benefis for low-

income groups an remoely-locae populaions.

Tus programs a can empower e poor an

pones, for example, soul be promoe.

omen an you consiue a large sare of

proucive uman resources. Falling you

employmen-o-populaion raio an a ecline

policy aenion an require innovaive inclusive

of women an you, susain economic grow, anreuce income inequaliy.

To implemen inclusive policies successfully an

o acieve eir inene objecives, governmen

effeciveness an insiuions will ave o be

srengene in mos of Asia.


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iv ighlights of the Framework of Inclusive Growth Indicators

Finally, significan effors are neee o give ig

prioriy o improve availabiliy of imely aa on

various inicaors by imporan isaggregaions o

monior progress on inclusive grow.

W// d

conomies in eveloping Asia

Par II provies a glimpse of general rens in FIGI

inicaors wi a focus on e ispariies on accoun of

isaggregae saisics are available. I supplemens

e analysis in Par I, wic is mainly focuse on

improvemens in counry-level inicaors. Higligs

following e FIGI srucure are given below.

Poverty an Inequality Outcomes

W WWW

inernaional povery line ecline in almos all

economies of eveloping Asia, bringing own e

proporion of poor below e povery line from

sare of income or consumpion of e iges

quinile o lowes quinile worsene in 16 of e 33

economies for wic aa are available beween e

earlies an laes years in e las 2 ecaes. Tese

inclue four of e five mos populous economies

oal populaion.

In e PRC, Inia, an Inonesiawere aa on

PPP) povery are availablewie ruralurban

income gaps are evien. Laes rural povery raes

respecively, wile corresponing urban povery

respecively.

Faser progress as been noe for e average years

of oal scooling for young females compare o

young males in eveloping Asia beween 1990 an

2010reucing e aggregae gap o only 0.3 years

in 2010.

h

resience is a reason for unequal oucomes in

>

sugges a in 19 of 29 economies in eveloping

Asia, a cil in e poores quinile is a leas wice

as likely o be unerweig as a cil in e ricesquinile.

Similar ispariies are observe in uner-five

moraliy raes. In eig economies, cances of

uner-five eas for cilren in e poores

ouseols were a leas ree imes as ig as

ose from e rices ouseols.

Policy Pillar One: Growt an xpansion of

conomic Opportunity

'W WWW

d

impac of e economic slowown in e evelope

economies in recen years.

Large work force in economies of eveloping Asia

is employe as own-accoun an conribuing

family workers (or vulnerable employmen). Tere

as been a slow ecline in e sare of vulnerable

workers vis--vis wage an salarie workers.

However, women coninue o be more likely o be

in vulnerable jobs an men.

Houseol income or consumpion surveys

conuce mosly beween 1998 an 2012 also

sow a in 12 ou of 20 economies, average

annual per capia income or consumpion (in 2005

WWW

in e lowes quinile an among ouseols in

e iges quinile. Daa from similar surveys for

earlier years in e 1990s for 20 economies sowa in only six of em as e per capia income

or consumpion grown a a faser rae for lowes-

quinile ouseols.

ile elecriciy consumpion per capia a

more an riple from 1990 o aroun 2010, wie


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ighlights of the Framework of Inclusive Growth Indicators

ispariies exis across economies, as e elecriciy

consumpion per capia is as low as 64 kilowa-our

(k) in Afganisan bu as ig as 10,356 k in

Taipei,Cina. Cellular pone subscripions increase

o nearly 82 per 100 people in eveloping Asia, bu

were below 20 per 100 people in Kiribai, Myanmar,an e Marsall Islans.

Policy Pillar Two: Social Inclusion to nsure

qual Access to conomic Opportunity

Goo performance is noe for scool life

expecancy, an gener ispariies also narrowe

from 1.1 years in 1999 o 0.3 years in 2011. Te

pupileacer raio improve o 25 in 2011 from

a raio of 28 in 1990, oug in some economies

like Afganisan an Camboia, e raio worsene(increase in absolue value) ue o more suens

pace.

dW

slowly from

/

were a leas 1.3 imes e rural coverage raes

/

e Lao PDR (1.4), e Marsall Islans (3.2), an

Pakisan (1.3). Cilren in e rices quinile

PDR (2.0), Afganisan (1.9), e Marsall Islans

(1.9), an Inonesia (1.8)were more an 1.5

e poores quinile.

wiou access o elecriciy are in eveloping

Asia. ie ruralurban ispariies also exis. Te

raios of urban-o-rural access were 1.5 or more in

9 counries wi raios as ig as 3.1 (Myanmar), 4.1(Timor-Lese), an 5.7 (Camboia). Soli fuels are

e ominan source of cooking fuel in rural areas in

poorer economies an ou of e nearly 1.97 billion

populaion in eveloping Asia wo epen on soli

fuels for cooking, 1.79 billion are in rural areas.

progress in proviing eir populaions wi access

o safe rinking waer for bo urban an rural

areas, us briging e ruralurban gap. However,

eveloping Asia sill use unimprove saniaion

&

rural populaion a access o improve saniaion

2011, an ou of 1.67 billion people wiou access

o improve saniaion in eveloping Asia, nearly

1.24 billion live in rural areas.

Developing Asia a mae goo progress in

narrowing e gener gap in all levels of eucaion.

However, gener pariy in labor force paricipaionpersiss in mos economies an as worsene

over ime. Also, women coninue o be grossly

unerrepresene in poliics, paricularly in e

seas occupie by women.

Policy Pillar Tree: Social Safety Nets

Social proecion an labor raings in 2012 range

from very srong performance of 5.0 in Armenia


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PART I

A Progress Assessment of the 1990s and2000s in Developing Asia


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1. Introduction

Te Asia an Pacific region as experience e fases

grow in e worl in recen ecaes, espie e

However, is grow as been uneven across e region.

Many Asia an Pacific economies are experiencing

rising ispariies in income an nonincome oucomes,

an bo policy makers an evelopmen parners

are concerne abou susaine an inclusive grow

(uang an Ali 2010; ADB 2012a, ADB 2011b, ADB

2012c).

Inclusive grow, efine as economic grow

wi equaliy of opporuniy, is one of e ree

sraegic objecives of e Asian Developmen Bank(ADB) as explaine in is Sraegy 2020 (ADB 2008). Te

firs wo eiions of e Framework of Inclusive Growth

Indicators 2011 an 2012 (FIGI 2011 an FIGI 2012)

special supplemens o e Key Indicators (KI) for Asia

and the Pacific 2011 an 2012

a eaile srucure of inicaors of inclusive grow

(Table 1.1).

Te FIGI consiss of 35 inicaors. Te oucomes

of inclusive grow are measure by inicaors of

income an nonincome povery. Tese oucomes are

acieve roug ree policy pillars of (i) susaine

economic grow an evelopmen of proucive

jobs an economic opporuniies, (ii) social inclusion

o ensure equal access o economic opporuniy by

expaning uman capaciies, an (iii) social safey nes

o proec e cronically poor an o aress e risks

pillars is escribe by a se of quaniaive inicaors,

all of wic soul be suppore by goo governance

an insiuions, again measure by a se of inicaors.

FIGI 2012 sowe significan correlaions beween e

oucome inicaors an many inicaors of e policypillars.

Beginning 1990 unil 2010, e Asia an

Pacific region successfully acieve e Millennium

Developmen Goal (MDG) of reucing exreme povery

[PPP] erms) by alf, 5 years aea of e arge year

2015. Te average per capia income (consan 2005

WWW

an 2010. However, e 2 ecaes1990s an 2000salso saw big callenges for e region. In e early

1990s, economic grow ecline in mos counries

in Cenral an es Asia afer e collapse of e

former Sovie Union. In e laer par of e same

significan financial crisis a i grow in a number

of counries. In e 2000s, wo global recessionse

o-com recession in e early 2000s an a more severe

financial crisis owar e laer par of e ecae

aversely affece many exporing economies in Asia.

Nevereless, in aggregae, e economies of evelopingAsia recovere well from e crises of e 1990s an

ave performe beer an oer regions in e recen

perio of volailiy in e global economy.

Te series of crises as well as inernal facors an

policies ave impace social an economic progress

in e 2 ecaes in economies of eveloping Asia. FIGI

2013, a special supplemen o KI 2013, aemps o race

ow economies of eveloping Asia ave progresse in

eac of e 2 ecaes of 1990s an 2000s using selece

inicaors of FIGI. Tis is also parly inspire by e MDG

iniiaive a began in e early 2000swi counries

globally aoping e MDGs an arges o improve

eir social an economic coniions significanly by

2015. However, e FIGI is no an assessmen of e

performance of e counries owar eir MDG goals.

Tis caper is ivie ino six secions, incluing

e inroucory firs secion. Te secon secion

explains e meoology, aa use, an limiaions of

^

e comparaive analysis of e improvemens acieve

by economies of eveloping Asia in e ecaes of1990s an 2000s base on e improvemen inexes

calculae for selece inicaors across pillars of FIGI.

Secion 6 presens conclusions.


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4 Framework of Inclusive Grow Inicaors

Table 1.1 Framework of Inclusive Growth Indicators*

Poverty and Inequality

Good Governance and Institutions

Income

1 roportion of population living below the national poverty line

2 roportion of population living below $2 a day at 2005 $

atio of income or consumption of the highest quintile to lowest quintile

Nonincome

4 Average years of total schooling (youth and adults)

5 revalence of underweight children under five years of age

nder-five mortality rate per 1,000 live births

Pillar OneGrowth and Expansion of Economic

Opportunity

Economic Growth and Employment

7 rowth rate of per capita at

(constant 2005 $)

8 rowth rate of average per capita

income or consumption 2005 $

(lowest quintile, highest quintile, andtotal)

9 mployment-to-population ratio

10 per person engaged at constant

1990 $

11 Number of own-account and

contributing family workers per 100

wage and salaried workers

Key Infrastructure Endowments

12 er capita consumption of electricity

1 ercentage of paved roads

14 Number of cellular phone subscriptions

per 100 people

15 epositors with commercial banks per1,000 adults

Pillar TwoSocial Inclusion to Ensure Equal

Access to Economic Opportunity

Access and Inputs to Education and

Health

1 chool life expectancy (primary to

tertiary)

17 upilteacher ratio (primary)

18 iphtheria, tetanus toxoid, andpertussis (T) immunization

coverage among 1-year-olds

19 hysicians, nurses, and midwives per

10,000 population

20 overnment expenditure on education

as a percentage of total government

expenditure

21 overnment expenditure on health

as a percentage of total government

expenditure

Access to Basic Infrastructure Utilities

and Services

22 ercentage of population with accessto electricity

2 hare of population using solid fuels

for cooking

24 roportion of population using an

improved drinking water source

25 roportion of population using an

improved sanitation facility

Gender Equality and Opportunity

2 ender parity in primary, secondary,

and tertiary education

27 Antenatal care coverage (at least one

visit and at least four visits)

28 ender parity in labor force

participation

29 ercentage of seats held by women in

national parliament

Pillar ThreeSocial Safety Nets

0 ocial protection and labor rating

1 ocial security expenditure on health

as a percentage of government

expenditure on health

2 overnment expenditure on social

security and welfare as a percentageof total government expenditure

oice and accountability 4 overnment effectiveness 5 Control of corruption

= gross domestic product, kh = kilowatt-hours, = purchasing power parity.

* ndicators will be disaggregated by sex, ruralurban residence, and wealth quintiles where applicable and when data are available.ource: eveloped from the policy pillars of inclusive growth as adapted from huang and Ali (2010). Asian evelopment Bank.


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2. The Methodology

Tis caper assesses e progress of 45 economies

of eveloping Asia uring e 1990s an 2000s using

20 inicaors1 of FIGI. Te aim is o assess progress

in selece inicaors in eac of e 2 ecaes ancompare progress in economies of eveloping Asia.

>h> >h>h>

For e secon ype of inicaors, were a lower

value inicaes iger acievemen (e.g., uner-five

moraliy rae), e formula for acievemen inex is:

f(x, U, L) = ((Ln (U-L)- Ln (x-L))Ln (U-L)

were U is iges possible value an L is e lowes

possible value of inicaor, x is e value of e inicaor,

an Ln is e naural logarim.

1 Only 20 indicators among the 35 indicators of FIGI were used dueto incomplete data and disparities among the countries in termsof availability of data.

Ten e improvemen inex (or progress)

beween wo perios 1 an 2 is given by:

F(x1, x2, U, L) = (f(x2 h > 1, U, L))(2-1)

were x2 is e value of e inicaor in e en perio

2 an x1 is e value in e beginning perio 1.

A posiive improvemen inex for bo kins of

inicaors as calculae above enoes a real posiive

improvemen in e acievemen of e inicaor

beween wo poins in ime, an a negaive value

enoes a eerioraion. For eac inicaor, a iger

posiive number enoes a beer performance wile a

more negaive number means worse performance.

Daa for e FIGI inicaors are rawn from

sanar aabases of UN agencies, oer inernaional &

an inicaor, aa for ree yearsan earlies year

closes o 1990, a mile year closes o 2000, an a

ir year closes o 2010were use. Tus for eac

selece inicaor, only e counries wi ree vali

aa poins were inclue in e analysis. Tese ree

aa poins allowe e calculaion of e improvemen

inexes for eac selece inicaor for e 2 ecaes.

Limitations. Incomplee aa an ispariies

among e counries in erms of availabiliy of aa are

among e limiaions encounere in e suy. Tus,

only 20 inicaors among e 35 inicaors of FIGI were

inicaors selece across counries is also isparae.

Tus, some inicaors woul ave almos complee aa

for counries wile oers woul ave fewer counries

represene in e inicaors, wic may affec e

analysis an inerpreaion of resuls.

Anoer imporan limiaion is a since e

number of inicaors is limie only o 20 inicaors,

e picure is no complee. Te inicaors selecefor e pillars, for example, lack some vial inicaors.

i ese limiaions in min, e performance of e

economies of eveloping Asia in e 1990s an 2000s is

epice using e aforemenione meoology.

&

performance in eac inicaor coul no be sown,

wic woul oerwise be elpful in giving insigs ino

e iverse performances of e counries. Resuls for

Part I


24/102


improvemen inexes of e counries for eac inicaor,

an e performance of eac counry in e selece

in e following secions.

3. Performance of Economiesin the Selected Indicators

Te performance of economies on e selece

inicaors is observe base on e improvemen

inexes of e 2 ecaes. In is secion, some inicaors

are accompanie by graps a plo improvemen

inexes for e inicaor o epic counry performance.

d of economies of eveloping Asia base on e

improvemen inexes for e selece inicaors in e

1990s an 2000s. A posiive improvemen inex implies

progress in e performance of e inicaor beween

wo poins in ime, wile a negaive value implies a

eerioraion. To compare progress measure in erms

of improvemen inexes in e 2 ecaes, Table 1.2 also

or mainaine eir progress in e 2000s compare

wi progress uring e 1990s. An acceleraion in e

of improvemen inex in e 2000s from e 1990s. A

eceleraion is a ecline in e value of improvemen

W

if e value of improvemen inex of e 2000s is wiin

/

improvemen inex of e 1990s is negaive, a fall in is

acceleraion, an an increase in e negaive value (an

eceleraion.

Te nex subsecions iscuss e performance ofselece inicaors following e srucure of FIGI.

3.1 Poverty an Inequality

Proportion of Population Living below $2-a-Day

at 2005 PPP$

As sown by posiive improvemen inexes, e

a 2005 PPP inernaional povery line sows a mos

counries improve uring e 2 ecaes of 1990s an

2000s, excep for e Cenral Asian economies uring

e 1990s, wic suffere severe economic ecline

following e issoluion of e former Sovie Union,

for Malaysia a suffere from financial crisis, an forPacific economies of e Feerae Saes of Micronesia

an Papua New Guinea in e 2000s. Te Cenral Asian

economies recovere in e 2000s an so i Malaysia.

Tus, espie e financial crises, a majoriy of e

counries in e Asia an Pacific region were able o

reuce povery in e 2 ecaes an furer accelerae

inclue for is inicaor, 18 were able o reuce

counries accelerae eir raes of povery reucion in

e 2000s from e 1990s, wile 5 ecelerae.

Figure 1.1 plos e improvemen inexes for

of ouliers, e counries are clusere in e mile, bu

mos of e counries in e firs quaran accelerae

eir povery reucion in e 2000s.

= purchasing power parity.

Note: ata points used are all consumption-based except for the ederatedtates of Micronesia and Malaysia, which are income-based. ata forthe eoples epublic of China, ndia, and ndonesia combine the urbanand rural distributions, weighted by share of rural and urban population

to total population. ata for the ederated tates of Micronesia refer tourban population.

ources: Authors calculations based on data from ovcalNet atabase nline(orld Bank), accessed 1 May 201; orld evelopment ndicators

nline (orld Bank), accessed 19 April 201.

igure 1.1 Improvement Indexes for the Proportion ofPopulation Living below $2 a day at 2005 PPP$, 1990s, 2000s

2000s

1990s

A

BAN

B

CAM

C

N

N

A

MA

M

M

NA

N

TA

TA

TM

0.01

0.00

0.01

0.02

0.0

0.04

0.05

0.0

0.07

0.0

5

0.0

4

0.0

3

0.0

2

0.0

1

0.0

0

0.0

1

0.0

2

0.0

3

0.0

4

0.0

5

0.0

6

0.0

7


25/102


26/102


Te economies wi e mos impressive

were Buan, e PRC, Fiji, Inonesia, Malaysia, e

d E

t W Z

(Lao PDR), Inonesia, an Papua New Guinea, a mus

evelop inclusive policies o ensure longer reenion of

pupils in scools an overcome inequaliy of access o

eucaion especially for e poor an e vulnerable

populaions.

ources: Authors calculations based on data from Barro and ee (201); HumanDevelopment Report 2013 (N 201).

igure 1. Improvement Indexes for

Average Years of Total Schooling for Adults, 1990s, 2000s

2000s

1990s

A

AM

BAN

B

CAM

N N A

A

MA

M

MN

MA

N

A

A

N

C

N

TA

TA

TA

TN

0.005

0.000

0.005

0.010

0.015

0.020

0.0

05

0.0

00

0.0

05

0.0

10

0.0

15

0.0

20

Note: ata points used are all consumption-based except for Taipei,China;which are income-based and defined as disposable household income.ata for the eople's epublic of China combine the urban and ruraldistributions, weighted by share of urban and rural population to totalpopulation.

ources: Authors calculations based on data from ovcalNet atabase nline(orld Bank), accessed 1 May 201; for Taipei,China: economy source.

igure 1.2 Improvement Indexes for the Ratio of Income orConsumption Share of Highest Quintile to Lowest Quintile,

1990s, 2000s

2000s

1990s

A

BAN

CN

A

MA

MN

A

TATA

0.04

0.02

0.00

0.02

0.04

0.0

0.08

0.10

0.12

0.0

4

0.0

2

0.0

0

0.0

2

0.0

4

0.0

6

0.0

8

0.1

0

0.1

2


27/102

Coninue improvemens in access o scooling

is an imporan resul an boes well for proucive

uman capaciy an fuure grow of e region. Figure

1.3 presens improvemen inexes for e average years

for Armenia, Fiji, e Malives, an Tajikisan, all oerslie in e firs quaran sowing posiive inexes in bo

ecaes. Te performances of e Republic of Korea;

Malaysia; Palau; Singapore; Sri Lanka an Taipei,Cina

ave been paricularly impressive in bo ecaes.

Under Five Mortality Rate per 1,000 live births

Uner is inicaor, all economies wi sufficien aa

were able o reuce moraliy for ose uner five

sufficien aa, 42 improve in bo ecaes an onlyone counry, Nauru, a no improvemen (Figure 1.4).

Improvemen inexes for 16 counries accelerae in

e 2000s, 18 mainaine eir progress raes, an 9

ecelerae. Te economies wi eceleraion in e

2000s inclue ose wi alreay low cil moraliy

raes like e Republic of Korea, Malaysia, Singapore,

an Tailan, bu also inclue ose wi ig raes

like Afganisan, e Marsall Islans, an PNG. Tis

inicaor is also a measure for e MDG arge of cuing

e uner-five moraliy raes by wo-irs from e

1990 levels an consisen progress in e las 2 ecaes

is no enoug for many counries o acieve is arge.

(ADB 2012b).

Figure 1.4 also sows e improvemen inexes

for is inicaor for e 2 ecaes, were counries

cluser aroun e 45-egree line in e firs quaran.

Many low-income economies like Banglaes, e Lao

PDR, e Malives, Mongolia, an Timor-Lese sow

ig reucions in cil moraliy raes.

Tese posiive avances augur well for aving

ealier cilren an a proucive labor force for

fuure benefis o iniviuals, sociey, an e economy.

Te four oucome inicaors of FIGI iscusse

above inicae goo progress in povery reucion

an in eal an eucaion oucomes in eveloping

Asia. However, income isribuion is a callenge for

many economies of eveloping Asiawic coul be

a resul of grow concenrae only in cerain regionsof a counry. Tis income inequaliy may wien regional

ispariies, ispariies beween an wiin urban an

rural areas, an among ifferen classes of sociey.

Acieving inclusive grow erefore requires greaer

aenion.

3.2 Pillar One: Growt an xpansion

of conomic Opportunity

3.2.1 conomic Growt an mployment

Gross Domestic Product per Capita at PPP (constant

2005 PPP$)

d

for annual exponenial grow raes of gross omesic

'WWWW2

of 36 economies, 24 economies exibie posiive

inexes in e 1990s, wile grow in 12 economies was

negaive. Te economies wi negaive grow were

from e Cenral an es Asia, Brunei Darussalam,

Mongolia, Palau, an Solomon Islans. In e 2000s,33 ou of 36 economies a posiive grow an

improvemen inexes, as 24 economies accelerae,

annual grow level, an 10 counries ecelerae.

2 Huge differences in the per capita incomes between the poorestand the richest countries yielded some unusual indexes using theKakwani method. Hence, the exponential growth formula was usedfor this indicator. The formula for the exponential annual growth rateis (Ln(x(T))-Ln(x(t)))/(T-t), where x is the GDP per capita in constant2005 PPP$, T is the end year, and t the starting year.

Part I

ource: Authors calculations based on data from Millennium ndicators

atabase nline (N), accessed uly 201.

igure 1.4 Improvement Indexes forUnder-Five Mortality Rate per 1,000 Live Births, 1990s, 2000s

2000s

1990s

A

AM

A

BAN

B

B

CAM C

C

N

NA

A

MA

M

M

M

MN

MA

NA

N

AA

N

AM

N

TA

TA

TM

TNTM

TB

AN

0.000

0.005

0.010

0.015

0.020

0.025

0.00

0.0

00

0.0

05

0.0

10

0.0

15

0.0

20

0.0

25

0.0

30


28/102


Figure 1.5 sows e scaer plo of improvemen

inexes of e exponenial annual grow rae of GDP

per capia for e 36 economies for e 1990s an 2000s.

Te Cenral an es Asian economies of Armenia,

'

Number of Own-Account and Contributing Family

orkers Per 100 age and Salaried orkers

Tis inicaor sows e exen of low qualiy an

vulnerable jobs in an economy. Comparaive aa for e

ese, 7 economies in e 1990s an 8 in e 2000s a

posiive improvemen inexes implying movemen from

low-paying informal jobs o formal jobs, wic usually

enail more permanency an iger pay (ADB 2011a).

Hong Kong, Cina an Singapore bo sowe ecline

in e 1990s, wi Hong Kong, Cina furer eclining in

e 2000s. However, ese economies alreay ave very

low levels of vulnerable employmen. Improvemen

inexes for five economies (incluing Inia an Sri Lanka)

also accelerae in e 2000s wile for four (incluing

Pakisan an Tailan), ey ecelerae.

3.2.2. Key Infrastructure nowments

Per Capita Consumption of Electricity

Te improvemen inexes of mos counries sow

increase in per capia elecriciy consumpion, le by

e iger-income counries in bo e 1990s an e

2000s. For e lower-income counries, e increase inper capia elecriciy consumpion is muc lower an

a of e iger-income counries. Mos Cenral an

es Asian economies suffere eclines in elecriciy

consumpion in e 1990s ue o eir recession, an

in some, per capia consumpion furer ecline in

e 2000s, espie significan economic recovery. Tis

may be ue o e lack of mainenance of elecriciy

infrasrucure uring e ecae of ecline or ue o

significan improvemens in energy efficiency.

= gross domestic product, = purchasing power parity.

ource: Authors calculations based on data from orld evelopment ndicatorsnline (orld Bank), accessed 1 uly 201.

igure 1.5 Improvement Indexes for Growth Ratein GDP Per Capita at Constant 2005 PPP$, 1990s, 2000s

2000s

1990s

AM

A

BAN

B

B

CAM

C

N

N

A

A

MA

M

MN

NA

A

NAM

N

TA

TA

TN

TMB

AN

0.02

0.00

0.02

0.04

0.0

0.08

0.10

0.12

0.14

0.12

0.10

0.08

0.06

0.04

0.02

0.0

0

0.0

2

0.0

4

0.0

6

0.0

8

0.1

0

0.1

2


29/102

consumpion in e 1990s wile 10 saw a ecline, wic

inclue 8 economies of e Cenral an es Asia.

In e 2000s, is became 31 improvemens, wi 5

winessing a ecline, 4 of wic were Cenral an es

accelerae eir per capia elecriciy usage, 1

mainaine i, an 9 ecelerae in e 2000s compare

wi e 1990s.

Te general increase in elecriciy usage is

common o growing economies, wic owever,

also enails environmenal repercussions as mos of

ese economies epen on elecriciy generae by

/

impore fuels.

Per Capita Cellular Phone Subscriptions

Cellular pone subscripions were almos non-exisen

uring e early 1990s, excep for a few ric economies.

During e 2000s, subscripions of cellular pones

grew exponenially. Tus, wile uring e 1990s only

e ricer economies increase ownersip of cellular

pones, mos economies increase cellular pone

subscripions significanly in e following ecae

incluing many of e lower-income counries. However,

many of e Pacific islan economies an Myanmar

increase eir cellular pone ownersip in e 2000s a

a muc slower pace an oer eveloping economies.

Improvemen inexes for 42 economies sow a

38 increase eir per capia cellular pone subscripion

in e 1990s. In e 2000s, all 42 economies increase

eir per capia subscripions an 41 economies

accelerae eir per capia subscripion raes. Te

only economy were e improvemen inex in e

2000s ecelerae in comparison wi e 1990s was

Taipei,Cina, wic alreay a a ig subscripion levelin e 2000s, an were subscripions mig be reacing

a sauraion poin.

Cellular pones ave become par of e lives of

people in all economies of eveloping Asia, incluing

e low-income economies. Tey ave ransforme e

ways in wic people communicae, access informaion

as well as financial an oer services, inerac wi

e governmen, increase economic opporuniies, an

expan eir business. Tey ave immense benefis for

low-income groups an remoely-locae populaions.

Tus, programs a can empower e poor an

soul be suppore.

In general e improvemen inexes for e

inicaors of pillar 1excep for e you employmen-o-populaion raioemonsrae posiive resuls

especially accelerae in e 2000s an consumpion

of elecriciy increase along wi increasing economic

grow. Limie aa sugges some eclining ren in

e proporion of informal an vulnerable jobs in poor

economies. A e same ime, significan avances

in e use of cellular pones are an inicaion of e

progress mae in e informaion an communicaion

ecnology (ICT) infrasrucure in e region.

3.3 Pillar Two: Social Inclusion to

nsure qual Access to conomic

Opportunity

3.3.1. Access an Inputs to ucation an Healt

School Life Expectancy

Scool life expecancy from primary o eriary

improve for mos counries in e 1990s an 2000s.

Improvemen inexes sow a ou of 20 economies,

12 improve in e 1990s wile 8 economies, wic

inclue 7 economies from e Cenral an es Asia

plus Mongolia, observe a ecline. In e 2000s, all

excep e Pilippines winesse an improvemen. In

e 2000s e improvemen inexes for 16 economies

accelerae, 1 mainaine is level, wile 3 ecelerae

compare wi inexes for e 1990s. Among e ree

were progress in e 2000s slowe was e Republic

of Korea, wic alreay as e iges scool life

expecancy in eveloping Asia.

Figure 1.6 isplays improvemen inexes for e

20 economies a ave sufficien aa for is inicaor.

Cenral an es Asian economies a eerioraions

in e 1990s ue o eir severe recession. Afganisan

an Mongolia also eeriorae. Among e bes

performers are Brunei Darussalam, e Republic of

Korea, an Tailan. Afganisan, Camboia, Inonesia,


30/102


Tese resuls, especially for Cenral Asian

economies, inicae a scooling, like elecriciy

consumpion, also epen igly on economic grow.

en ere is a recession, cilren an e you

may rop ou of scool if ey ave o elp e family

financially.

PupilTeacher Ratio in Primary Schools

Te pupileacer raio is an imporan proxy inicaor

of eucaion qualiy. In e 1990s, e improvemen

inexes for a significan number of counries

eacer recruimen i no keep pace wi increase

improvemen in is inicaor in e 1990s an 11

experience ecline. In e 2000s, 24 counries improve

an, ese nine economies inclue Afganisan an

W

ave worsene over ime peraps ue o e increasing

ey inclue economies like Taipei,Cina a a

progresse a a fas rae in e 1990s an a alreay

reace a low raio.

Te sorage of eacers as a irec implicaion

on e qualiy of eucaion an ereby on reenion

eacer raios are also seen o ave large ropou raes

hE^ /

ese sorages are in remoe an rural areas, an

erefore as governmens make effors o acieve e

MDG of universal primary eucaion, along wi arges

o enrol all cilren, ey also nee o ave policies

in place o provie aequae number of qualifie anraine eacers.

Diphtheria, Tetanus Toxoid, and Pertussis (DTP3)

Immunization Coverage Among 1-Year-Olds

Performance in is inicaor sows a mixe picure.

Aloug e majoriy of economies exibie

improvemens in eir inexes in e 1990s an 2000s,

a number of em also exibie a ecline beween

e saring an en poins. Tose a eeriorae

inclue economies from all income levels.

bu 16 eeriorae. Tis worsene a bi in e 2000s

wi 23 sowing improvemens an e remaining 19

wi no improvemen or eerioraing coverage raes.

Improvemen inexes for 21 economies accelerae

in e 2000s, ecelerae for anoer 20, an was

mainaine in 1.

Figure 1.7 sows e improvemen inexes for is

inicaor. Te PRC an Inia are among e economies

a saw eclines in eir inexes in e 1990s, along

ource: Authors calculations based on data from nstitute for tatistics ataCentre (NC), accessed 0 May 201.

igure 1. Improvement Indexes forSchool Life Expectancy, 1990s, 2000s

2000s

1990s

A

AB

CAM

C

NN

A

A

MN

MA

TA TA

B

0.010

0.005

0.000

0.005

0.010

0.015

0.020

0.0

10

0.0

05

0.0

00

0.0

05

0.0

10

0.0

15

0.0

20

ource: Authors calculations based on data from lobal ealth bservatoryata epository (), accessed 17 May 201.

igure 1.7 Improvement Indexes for Diphtheria,Tetanus Toxoid, and Pertussis (DTP3)

Immunization Coverage Among 1-Year-Olds, 1990s, 2000s

2

000s

1990s

A

AMA

BAN

B

B

CAM

C

C

N

N

A

A MA

M

M

MMN

MA

NA

N

A

A

N

AM

N

TATA

TN

TM

T

BAN

0.08

0.0

0.04

0.02

0.00

0.02

0.04

0.0

0.08

0.10

0.0

8

0.0

6

0.0

4

0.0

2

0.0

0

0.0

2

0.0

4

0.0

6

0.0

8

0.1

0


31/102

wi Afganisan, Buan, Myanmar, e Pilippines,

an some Pacific economies. Te grap also sows a

many of ese counries improve eir performance in

e 2000s, noably e PRC, e Cook Islans, Fiji, e

Marsall Islans, Myanmar, an Nauru. Te eclines in

some economies may no be alarming. However, every

e lives of a large number of cilren a risk from ese

reucing cil moraliy.

3.3.2 Access to Basic Infrastructure Utilities an

Services

Proportion of Population Using an Improved Drinking

ater Source

Te percenage of e populaion using an improve

rinking waer source is one of e MDG inicaors a

as seen remenous progress in mos economies in

bo ecaes, increasing access for millions of people.

rinking waer faciliies a e beginning of 1990 an

a also mainaine i roug e 2 ecaes were no

inclue so as no o bias e number of counries a

i no improve.

Improvemen inexes of 36 economies, sow a

31 improve in e 1990s an 32 improve in e 2000s.

Tiry accelerae e improvemen in e 2000s over

e 1990s, four ecelerae, an wo mainaine eir

saus.

Figure 1.8 sows e improvemen inexes for

well in bo ecaes inclue e PRC, Fiji, Inia, e

Z

Edd

ecline in bo ecaes. Marginal eclines in e

improvemen inexes for bo ecaes are seen in e&^ h

t

ese economies generally ave coverage of more

waer soul be reverse. Te 2 ecaes of effors o

an improve access o safe rinking waer as le o e

acievemen of e MDG arge of reucing by alf e

populaion wiou access in mos economies of e

region (ADB 2012b).

Proportion of Population Using an Improved Sanitation

Facility

Te proporion of populaion using an improve

saniaion faciliy is also an MDG inicaor. Similar o

access o rinking waer, mos economies improve

in e 1990s an 2000s an furer accelerae eir

improvemens in e 2000s, aloug compare o

improve rinking waer sources, e progress as no

e en were omie in e analysis.

30 improve in e 2000s. In e 2000s, 30 economies

accelerae eir improvemens, 6 ecelerae an 2

mainaine eir 1990s saus. Figure 1.9 sows a

Georgia an Tonga eeriorae in bo ecaes, wile

ig improvemen inexes were observe in Palau an

h

eveloping Asia as improve is recor on access o

improve saniaion faciliies since e 1990s, many

economies are far from acieving e MDG arge of

cuing by alf e proporion of populaion wiou

access (ADB 2012b).



igure 1.8 Improvement Indexes for Proportion of PopulationUsing an Improved Drinking Water Source, 1990s, 2000s

2000s

1990s

A

AM

ABAN

CAM

C

N

N

A

A

MA

M

M

M

MN

MAN

AA

N

AM

TA

TATM

TM

T

B

AN

0.015

0.010

0.005

0.000

0.005

0.010

0.015

0.020

0.025

0.00

0.0

10

0.0

05

0.0

00

0.0

05

0.0

10

0.0

15

0.0

20

0.0

25

0.0

30

Part I


32/102


3.3.3 Gener quality an Opportunity

Gender Parity in Primary Education

Improvemen inexes for e 1990s an 2000s for

is inicaor sowe a a majoriy of counries a

improve gener pariy in primary eucaion in bo

ecaes, an many also accelerae eir improvemens

in e 2000s.

Again, exclue from e analysis are some

counries a a alreay acieve full gener

economies, 15 improve in e 1990s an 21 improve

in e 2000s. Tweny economies accelerae eir

improvemens in e 2000s an improvemen inexes

for 6 ecelerae, wic inclue Myanmar an Samoa

a ave alreay acieve gener pariy in primary

scooling in 2010.

Te ecline an eceleraion ere may no becriical since many counries ave acieve or are close

o gener pariy in primary eucaion. Tose a are

'

access o primary scooling in eveloping Asia vis-a-vis

boys as improve consierably in e las 2 ecaes.

Gender Parity in Labor Force Participation

More economies a improve gener pariy in labor

of 40 economies, 31 improve in e 1990s an 9 i

no. Tis worsene consierably in e 2000s were 23

counries improve an 17 i no. Nineeen counries

accelerae eir improvemens in e 2000s wile 21

ecelerae.

Te eerioraion of gener pariy in labor force

paricipaion espie improvemens in gener pariy in

eucaion reaens o isor e composiion of e

labor force an inclusiveness of grow by reucing

t

more an more women being eucae, i is a goo

opporuniy o aress ese inequaliies an inrouce

innovaive approaces owar employmen policies

e economy.

Percentage of Seats held by omen in National

Parliament

Tere are slig improvemens for a majoriy of counries

an slig eerioraion for a few in is inicaor in

1990s wile 15 i no. In e 2000s, is became beer

wi 18 improvemens. In e 2000s, 18 accelerae

eir improvemens wile 10 ecelerae.

Tere is muc room for improvemen in e

inclusion of women in e poliical process, wic coul

sociey an e economy.

Base on ese inicaors, eveloping Asia overall

is no performing oo well on gener pariy. Aloug

poliical process require more aenion.

3.4 Pillar Tree: Social Safety Nets

Social Security Expenditure on Health as a Percentage

of Government Expenditure on Health

Tere are some improvemens in a majoriy of e

few economies wi sufficien aa for bo ecaes.

an e 2000s. Furer, in e 2000s, nine economies

accelerae eir improvemens wile anoer nine

ecelerae.



igure 1.9 Improvement Indexes for Proportion of PopulationUsing an Improved Sanitation Facility, 1990s, 2000s

2000s

1990s

A

AM

A

BAN

CAM

C

C

NN

A

A

MA

M

M MMN

MANAN

A

A

N

AM

TA

TM

TN

TM

T

B

AN

0.04

0.0

0.02

0.01

0.00

0.01

0.020.0

0.04

0.05

0.0

0.0

1

0.0

0

0.0

1

0.0

2

0.0

3

0.0

4

0.0

5

0.0

6


33/102

d

expeniures on social securiy scemes an oer

scemes of compulsory eal insurance especially

o cover e poor an vulnerable secions of e

populaions improves inclusiveness of grow. If e

18 economies are a represenaive group, i can be saia governmens in eveloping Asia are making some

progress in expaning social securiy in eal. Counries

nee o promoe pro-poor eal financing policies for

beer safey nes, especially for e poor.

3.5 Goo Governance an Institutions

Voice and Accountability

accounabiliy in e 1990s wile 32 i no. In e 2000s,

20 improve an 24 accelerae eir improvemens in

e 2000s wile 19 ecelerae.

Ta many counries (almos alf in e 2000s)

i no improve in is inicaor sows a poliical

inclusion is no keeping pace wi economic an social

evelopmen.

Government Effectiveness

A significan number of counries ave negaive or

of 40 economies, 19 improve in e 1990s wile

21 i no. In e 2000s, 23 improve wile 17 i

no. Tweny-one accelerae in e improvemens in

e 2000s, 1 mainaine is 1990s posiion, wile 18

ecelerae. Governmen effeciveness seems o be

anoer weakness owar acieving goo governance

in eveloping Asia.

Figure 1.10 sows e improvemen inexes

of governmen effeciveness. Mos counries arein e secon, ir, or four quaran, inicaing

eerioraion uring e 1990s or e 2000s or bo.

effeciveness in bo ecaes, wic inclue 4

t

3 in Soueas Asia.

Tus, economies of eveloping Asia nee

improve governance an ransparen an accounable

insiuions o provie a sronger suppor for e pillars

of inclusive grow. Tis mig be one of e mos

persisen callenges owar more inclusive grow in

e region.

d/Z

Growt Process

Te improvemen inexes of e inicaors for access

o improve rinking waer sources an improve

saniaion faciliies isaggregae by rural an

urban areas for wic sufficien aa are available

for eveloping Asia ave also been compare. For

improve rinking waer sources, ou of 36 economies,

23 a larger improvemen inexes for rural areas an

for urban areas in e 1990s. Tis furer increase o

25 in e 2000s, sowing larger effors o brige e

&

an 1.11.2 sow e improvemen inexes for access

o improve rinking waer sources for rural an urban

areas. Access in rural areas o improve rinking waersources accelerae in 32 economies in e 2000s

compare wi e 1990s, an in 21 economies in urban

areas.

For e saniaion inicaor, ou of 37 economies,

15 a larger improvemen inexes for rural areas an

for urban areas in e 1990s. Tis increase o 21 in

urban gap in saniaion in e 2000s. Figures 1.11.3 an

ource: Authors calculations based on data from orldwide overnancendicators (orld Bank) available at http://info.worldbank.org/governance/wgi/index.asp, accessed 18 April 201.

igure 1.10 Improvement Indexes forGovernment Effectiveness, 1990s, 2000s

2000s

1990s

AAM

ABAN

B

B CAMC

NN

A

A

MA

MMM

MNMA

N AN

AM

N

TA

TA

TA

TN

TM

BAN

0.04

0.02

0.00

0.02

0.04

0.0

0.08

0.08

0.06

0.04

0.02

0.00

0.02

0.04

0.06

0.08

Part I


34/102


1.11.4 presen e improvemen inexes for access o

improve saniaion faciliies in e 1990s an 2000s for

rural an urban, respecively. Similar o rinking waer,

many economies exibi acceleraions in bo rural an

urban areas in e 2000s, oug improvemen inexes

are muc lower an e inexes for rinking waer.

Tus, wile muc more nees o be one o brige

services, i oes inicae improvemens in e rural

areas vis--vis e urban areas in e las 2 ecaes.

Te inclusion of rural areas in evelopmen is

criical for inclusive grow. Rural areas usually are

more remoe an ofen lack basic infrasrucure, anwere lower prouciviy (an erefore lower wage)

employmen ens o be concenrae. Improving

infrasrucure in e rural areas will promoe grow

wi inclusion in eveloping Asia.

ource: Authors calculations based on data from Millennium ndicatorsatabase nline (N), accessed uly 201.

igure 1.11.1 Improvement Indexes for Proportion of Rural PopulationUsing an Improved Drinking Water Source, 1990s, 2000s

2000s

1990s

A

AM

ABAN

CAM

C

N

N

A

A

MA

M

M

M

MN

MAN

AA

N

AM

TA

TA

TM

TM

T

B

AN

0.015

0.010

0.005

0.000

0.005

0.010

0.015

0.020

0.025

0.00

0.05

0.0

15

0.0

10

0.0

05

0.0

00

0.0

05

0.0

10

0.0

15

0.0

20

0.0

25

0.0

30

0.0

35


igure 1.11.2 Improvement Indexes for Proportion of Urban PopulationUsing an Improved Drinking Water Source, 1990s, 2000s

2

000s

1990s

A

AM

A

BAN

B

CAM

C

N

N

A

AMA

M

M

M

MN

MA

NA

A

N

AM

TA TA

TM

TM

T

B

AN

0.00

0.020

0.010

0.000

0.010

0.020

0.00

0.040

0.050

0.0

30

0.0

20

0.0

10

0.0

00

0.0

10

0.0

20

0.0

30

0.0

40

0.0

50



igure 1.11. Improvement Indexes for Proportion of Rural PopulationUsing an Improved Sanitation Facility, 1990s, 2000s

2000s

1990s

A

AM

A

BANCAMC

C

N

N

A

AMA

M

M

M

MN

MA

N

A

A

N

AM

TA

TATM

TN

TMT

B

AN

0.00

0.020

0.010

0.000

0.010

0.020

0.00

0.040

0.050

0.00

0.070

0.0

30

0.0

20

0.0

10

0.0

00

0.0

10

0.0

20

0.0

30

0.0

40

0.0

50

0.0

60

0.0

70


igure 1.11.4 Improvement Indexes for Proportion of Urban PopulationUsing an Improved Sanitation Facility, 1990s, 2000s

2

000s

1990s

A

AM

A

BAN

CAM

C

C

NN

A

A

MA

M

M

M

MN

MA

NA

N

A

A

N

AM

TATA TM

TN

TM

T

B

AN

0.00

0.015

0.000

0.015

0.00

0.045

0.0

30

0.0

15

0.0

00

0.0

15

0.0

30

0.0

45


35/102

3.7 Summary

In summary, analysis of a number of FIGI inicaors

sow a economies of eveloping Asia ave mae

improvemens in e las 2 ecaes, wi more counries

improving in larger number of inicaors in e 2000s.Many economies also sow acceleraions in a number

of inicaors in e 2000s inicaing increasing pace of

improvemen in e policy pillars of inclusive grow

an is oucomes. Tus, oucome inicaors of povery

rae, uner-five moraliy rae, an average years of

scooling ave seen goo progress. However, limie

aa on raio of income or consumpion sare of iges

quinile o e lowes quinile sugges worsening of

e gap beween e ric an e poor in many of e

economies.

Among e inicaors of pillar one (grow an

expansion of economic opporuniy), per capia GDP

grow rae, elecriciy consumpion, an cellular

pone subscripions sow muc success. Available aa

on vulnerable employmen sow some canges wi a

slow rise in e sare of wage an salary employmen,

bu you employmen-o-populaion raios ave been

eclining in mos economies.

Among e inicaors of pillar wo (social inclusion

o ensure equal access o economic opporuniy),

eveloping Asia as mae gains in enroling cilren in

scools as epice by improving scool life expecancy.

d

economies excep in some were increase scool

enrollmens may ave oupace eacer recruimens.

DTP3 coverage sows eerioraion in many counries.

Gener pariy as been a remarkable success in primary

eucaion, bu e progress is no encouraging in labor

poliical process. For basic faciliies suc as improve

rinking waer sources, remarkable progress as been

mae bo in e rural an urban areas. Use of improvesaniaion faciliies as also consisenly improve in

rural an urban areas, oug a a muc slower pace

an rinking waer. Te improvemen in e rural

areas for rinking waer sources an saniaion faciliies

augurs well for e inclusion of rural areas in grow.

Te lone inicaor on social safey nes suggess some

increases in social securiy expeniures on eal by

governmens. Finally, goo governance appears weak in

many economies of eveloping Asia.

4. Performance on Indicatorsby Economy

Table 1.3 presens an aggregae picure of eperformance of 45 economies base on e improvemen

inexes for e 1990s an 2000s on e selece

inicaors for wic sufficien aa are available. Te

able sows a ere is ispariy in availabiliy of aa

across counries. ile Tailan as e larges number

of inicaors (19) wi sufficien aa, Timor-Lese as

e lowes (5). Te performance of counries uring e

2 ecaes is generally posiive.

More improvemens an eerioraions in

inicaors occurre in bo e 1990s an 2000s. Duringe 1990s, five economies a more inicaors sowing

'


36/102


Table 1. Improvement Indexes, 1990s and 2000s, by Economy: A Summarya

Economies by regions indeveloping Asia

No. ofindicators

included per

economy

1990s 2000s No. of indicators with progress in the 2000s

No. ofindicators with

positive index


negative or

zero index


positive index


negative or

zero index Accelerated Maintained Decelerated

Central and West Asia

Afghanistan 12 7 5 11 1 8 4Armeniab 1 9 4 10 8 5

Azerbaijan 15 9 12 1 2

eorgia 15 9 14 1 14 1

azakhstanb 1 8 5 10 8 5

yrgyz epublic 1 10 10 9 2 5

akistan 18 1 2 15 12 1 5

Tajikistan 15 8 7 10 5 11 4

Turkmenistan 11 4 7 5 1 4

zbekistan 1 7 7 8 1 4

East Asia

China, eoples ep. ofb 17 12 5 1 4 1 4

ong ong, China 10 7 9 1 8 2

orea, ep. ofb, c 15 14 1 14 1 7 2

Mongolia 17 9 8 11 10 7

Taipei,Chinab 9 8 1 7 2 5 4

South AsiaBangladesh 14 10 4 1 1 1 1

Bhutan 11 5 9 2 10 1

ndia 17 14 1 1 14

Maldivesb 12 8 4 10 2 11 1

Nepal 14 11 1 1 9 2

ri anka 18 1 2 1 5 10 1 7

Southeast Asia

Brunei arussalam 12 9 10 2 1 5

Cambodia 15 14 1 1 2 11 4

ndonesia 18 14 4 1 2 12 2 4

ao 17 1 4 15 2 12 1 4

Malaysia 17 14 15 2 9 8

Myanmar 14 11 11 9 1 4

hilippines 18 14 4 14 4 9

ingaporec, d 12 8 4 10 2

Thailand 19 14 5 1 12 7

iet Nam 1 15 1 1 9 2 5

The Pacific

Cook slandsd 7 5 2 1 4

iji 1 10 9 4 7

iribati 1 8 5 9 4 5 1 7

Marshall slands 7 4 4 4

Micronesia, ed. tates ofe 11 5 5 5 2 4

Nauru 1 5 4 2

alau 7 4 5 2 4 2 1

apua New uinea 14 9 5 8 7 7

amoa 14 11 7 7 8

olomon slands 12 8 4 7 1 4

Timor-este 5 2 5 4 1

Tongad 1 8 5 11 2 7 1 5

Tuvalu 7 4 5 2 1anuatu 1 8 5 9 4 7 1 5

a mployment-to-population ratio aged 1524 years is not included in this table.b ender parity in primary education was not included since these economies had achieved gender parity early on. Thus, the improvement index would be zero

and bias the economys performance negatively.

c roportion of population with an improved sanitation facility was not included since the economy had achieved 100% access to sanitation facility early on,and zero improvement index may bias the economys performance negatively.

d roportion of population with an improved drinking water source was not included since the economy had achieved at least 99% accessto improved drinking sources early on, and 0% improvement may bias the economys performance negatively.

e ata used for proportion of population living below $2-a-day poverty at 2005 $ refers to urban population only.Note: Accelerated, maintained, and decelerated refer to progress of economies in terms of improvement indexes in the 2000s compared to the 1990s as

explained in section .ource: Authors calculations based on available data.


37/102

low-income counries of 1990 (wi a leas ree-

fours of inicaors acceleraing in e 2000s) were

Banglaes, Buan, e PRC, Inia, Inonesia, e Lao

PDR, e Malives, Nepal, an Timor-Lese. Among

'


38/102


39/102


40/102


consumpion sare of iges quinile o lowes quinile

sugges a worsening of e gap beween e ric an

e poor in many economies.

Among e inicaors of policy pillar one,

improvemens in per capia GDP grow rae, elecriciyconsumpion, an cellular pone subscripions

ave been remarkable. Tere ave been slow bu

posiive canges in e reucions in own accoun

an conribuing family workers wi an increasing

sare of salary an wage workers, bu eclining you

employmen-o-populaion raios can be cause of

concern in some economies.

Among e inicaors of policy pillar wo,

significan gains ave been mae over e 2 ecaes in

improving scool life expecancy an mos economies

raios. Gener pariy in primary eucaion as improve

significanly in e 2 ecaes, bu gener pariy in labor

force paricipaion as eeriorae in many economies.

dW

sows eclines in many counries. Progress as been

noewory in improving access o clean rinking

waer sources, incluing in rural areas, an in access o

improve saniaion faciliies oug a a muc slower

pace an rinking waer. Te lone inicaor on social

safey nes suggess some improvemens in social

securiy expeniures on eal by governmens. Goo

governance an soun insiuions come ou o be

weak in many economies as inicae by eclines in e

inicaors of voice an accounabiliy an governmen

effeciveness.

consumpion, an scool life expecancy appear o move

ogeer; an improvemens in eal (as inicae by

consisen reucions in e cil moraliy raes) an

infrasrucure of saniaion an rinking waer appear

o ave aken place irrespecive of pace of economicgrow. Tis was evien mosly in many Cenral an

es Asian economies wen ese counries face

recession in e 1990s an recovere in e 2000s.

Counries a ave successfully reuce povery

bu ave winesse increasing income inequaliy will

nee o esign policies o expan job opporuniies an

access o social services an infrasrucure in regions

an populaions a are lef bein for em o acieve

inclusive grow. Furer, for an economic grow

a provies equaliy of opporuniy o all, innovaivepolicies an approaces will be neee. For example,

cellular pones ave immense benefis for low-income

d

populaions roug use of mobile pone ecnology

can be aope. omen an you consiue a large

sare of proucive uman resources. Falling you

labor force paricipaion are areas of concerns an

require

e proucive poenial of women an you o susain

economic grow an reuce income inequaliy. To

implemen inclusive policies successfully an acieve

eir inene objecives, governmen effeciveness

an insiuions will ave o be srengene in mos

economies of eveloping Asia. Finally, significan effors

are neee o give ig prioriy o improving availabiliy

of imely aa on various inicaors by imporan

isaggregaions o monior progress on inclusive grow.


41/102

Part I

Z

Asian Developmen Bank (ADB). 2008. Strategy 2020:

The Long-Term Strategic Framework of the Asian

Development Bank 20082020. Manila.

______. 2012a. Asian Development Outlook 2012:Confronting Rising Inequality in Asia. Manila.

______. 2012b. Key Indicators for Asia and the Pacific

2012. Manila.

______. 2012c. Framework of Inclusive Growth

Indicators: Key Indicators for Asia and the Pacific

2012 Special Supplement. Manila.

______. 2011a. Key Indicators for Asia and the Pacific

2011. Manila

______. 2011b. Framework of Inclusive Growth

Indicators: Key Indicators for Asia and the Pacific

2011 Special Supplement. Manila.Fukua-Parr, Sakiko an Josua Greensein. 2010. How

Soul MDG Implemenaion Be Measure:

Faser Progress or Meeing Targes? International

Policy Centre for Inclusive Growthorking Paper

E

hEW

Hailu, Degol an Raquel Tsukua. 2011. Acieving e

Millennium Developmen Goals: A Measure of

Progress. International Policy Centre for Inclusive

Growth, orking PaperE

hEW

/ > />

International Labour Conference, 101st Session,2012, Report V, The youth employment crisis:

Time for action:Fifth item on the agenda. Geneva.

p : w w w . i l o . o r g w c m s p 5 g r o u p s

public@e_norm@relconfocumens

meeingocumenwcms_175421.pf

Kakwani, N. 1993. Performance in Living Sanars:

An Inernaional Comparison. Journal of

Development Economics

^ '

How Asia Has Fare?Journal of Reviews on Global

Economics (forcoming).hE^ Education for All Monitoring Report

2005: The Quality ImperativehE^W

uang, J. an I. Ali. 2010. Povery, Inequaliy, an

Inclusive Grow in Asia in J. uang, e. Poverty,

Inequality, and Inclusive Growth: Measurement,

Policy Issues, and Country Studies. Lonon:

Anem Press an Manila: ADB.


42/102


43/102

PART II

Trends and Disparities Within Economiesin Developing Asia

Statistical Tables


44/102


45/102

Poverty and Inequality: Income Poverty

Te Inicators

Tree inicaors are inclue uner income povery

an inequaliy:

W

W

WWW

2005 prices, an

Z

Trens in conomies

E

an evaluae programs an policies aime a reucing

d

PPP) povery line provies a comparable measure

'W

eveloping Asia in e las 2 ecaes ave conribue

d

poor eclining from 2.20 billion in 1990 o 1.63 billion

t

PovCalNe povery aabase. ile e number of poor

WZWZ

961 million in 1990 o 359 million in 2010, e number

of poor in Inia increase from 722 million o 842 million

uring e same perio.

Base on e earlies an laes availableouseol survey aa beween 1990 an 2012, e

eveloping Asia excep for Georgia, were i increase

&

Z

(37.0), e PRC (57.4), Inonesia (38.5), Nepal (31.7),

dd

E


46/102

rural areas are more likely o be poor, wi 24 ou of

26 economies aving muc iger rural povery raes

&

d

Tuvalu were rural povery raes were sligly lower

an urban povery raes. In all counries for wic aa

povery raes ecline, excep for Fiji, Georgia, an

Tuvalu were oug urban povery raes a ecline

rural povery raes a gone up. In Afganisan an

Timor-Lese, bo rural an urban povery worsene

beween earlies an laes years.

Z

are only available for e PRC, Inia, an Inonesia.

>

^

urban povery in e mos populous counries of Asia

unerline e nee for policies a will improve

may no be sricly comparable because of canges

igure 2. National Rural and Urban Poverty Rates, Latest Year (%)

ao = ao eople's emocratic epublic, C = eople's epublic of China.

ource: Table 2.1.

0

10

20

0

40

50

0

Timor-Leste

Tajikistan

Fiji

KyrgyzRepublic

Afghanistan

Mongolia

Bangladesh

Armenia

Cambodia

India

LaoPDR

Myanmar

Palau

Nepal

Pakistan

VietNam

Georgia

Uzbekistan

Tuvalu

Azerbaijan

Bhutan

Thailand

Indonesia

PRC

SriLanka

Kazakhstan

Malaysia

Percen

t

ural rban

C = eople's epublic of China.ource: Table 2.1.

igure 2.2 Ratio of Income or Consumption Share of the Highest to Lowest Quintiles, Earliest and Latest Years

Ratio

0

5

10

15

20

25

0

5

40

45

50

Singapo

re

Malaysia

PR

C

Georg

ia

Philippines

Fiji

Samoa

Thailand

Bhutan

Maldives

Mongo

lia

Taipei,China

Tuva

lu

Uzbekistan

Japan

LaoPD

R

VietNa

m

SriLanka

Indonesia

Cambod

ia

Korea,

Rep.

of

Austra

lia

KyrgyzRepub

lic

NewZealand

Azerbaijan

Nep

al

Ind

ia

Tajikistan

Bangladesh

Timor-Les

te

Armen

ia

Kazakhstan

Pakistan

arliest ear atest ear



47/102

Poverty and Inequality: NonincomePoverty

Te Inicators

Te ree inicaors in is group are:

Average years of oal scooling (you an

aul),

W

years of age, an

h

Trens in conomies

Te average number of years of scooling from primary

inicaor for bo you an auls sow improvemens

in all e economies of eveloping Asia, excep for e

Cenral an es Asian economies of Armenia, e


48/102

/EW

Te average years of oal scooling for young an aul

males an females increase beween 1990 an 2010

for eveloping Asia an e gap in e average number

of years of scooling beween young males an femalesbecame smaller, from 0.6 year in 1990 o 0.3 year in

2010. In 20 ou of 29 economies, young females enjoye

more years of scooling an males (Figure 2.4). In

^E

yous now enjoy an average of 1.7 an 1.5 more years in

Afganisan a e larges gap of 3.6 years in 2010

wic was an increase from 3.3 years in 1990. Inia an

Pakisan, wic a a gap of 2.0 or more years, reuce

i from 2.0 o 1.1 years an from 2.4 years o 1.0 year,

daul males an females remaine a 1.5 years beween

economies ave females wi a iger average number

of years in scool. Tis implies a in e las 2 ecaes,

economies in eveloping Asia ave pai consierable


49/102

ao = ao eople's emocratic epublic.ource: Table 2.2.

igure 2.5 Prevalence of Underweight Children under Five Years of Age, Total, Lowest and Highest Wealth Quintiles, Latest Year (%)

0

10

20

0

40

50

0

Timor-Leste

India

Bangladesh

LaoPDR

Afghanistan

Nepal

Cambodia

Myanmar

SriLanka

Indonesia

Mald

framework of inclusive growth indicators 2013: key indicators for asia and the pacific

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