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East Asia should strive to ensure growth helps the poor

By Axel Van Trotsenburg | China Daily | Updated: 2015-09-11 07:40

Unprecedented economic growth over the last three decades turned East Asia into an economic powerhouse responsible for a quarter of the world's economy. Hundreds of millions of people across the region, including in China, Indonesia, Malaysia, Thailand and Vietnam, lifted themselves out of extreme poverty and enjoyed greater prosperity, largely because of more labor-intensive and inclusive growth.

But the success didn't come without challenges. As of last year, 100 million people in East Asia were still living on $1.25 a day and about 260 million on $2 a day or less. They could fall back into poverty if the global economy takes a turn for the worse or if they face health, food and other shocks at home. Their uncertain future shows the increasing inequality of East Asia's galloping growth.

The income divide was exacerbated by the 2008 global financial crisis. Income inequality has worsened in China and Indonesia, and stagnated at high levels in countries such as Singapore, Malaysia and the Philippines.

East Asia should strive to ensure growth helps the poor

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