8/13/2019 Rising Inequality in Asia and Policy Implications

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8/13/2019 Rising Inequality in Asia and Policy Implications

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Yg` Xarjfch Rlp`r s`rf`s fs l mactfcultfac ao tg` oare`rdy cle`i Ifsmussfac Rlp`r s`rf`s:tg` cuek`rfch ao tg` plp`rs mactfcu`i wftgaut fct`rruptfac ar mglch`. LIKFs warjfchplp`rs r`od`mt fcftfld fi`ls ac l tapfm lci lr` past`i acdfc` oar ifsmussfac. LIKF `cmaurlh`sr`li`rs ta past tg`fr maee`cts ac tg` elfc plh` oar `lmg warjfch plp`r (hfv`c fc tg`

mftltfac k`daw). ]ae` warjfch plp`rs ely i`v`dap fcta atg`r oares ao pukdfmltfac.

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^gulch, N., [. Jlckur, lci M. [g``. ;2 Lsflc I`v`dape`ct Klcj Fcstftut`. Lvlfdlkd`>gttp>//www.likf.arh/warjfch-plp`r/;2

8/13/2019 Rising Inequality in Asia and Policy Implications

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Ygfs plp`r daajs lt tg` r`m`ct tr`cis ao rfsfch fc`quldfty fc i`v`dapfch Lsfl, lsjs wgyfc`quldfty eltt`rs, `xlefc`s tg` irfvfch oarm`s ao rfsfch fc`quldfty, lci prapas`s padfmyaptfacs oar tlmjdfch gfhg lci rfsfch fc`quldfty. Y`mgcadahfmld mglch`, hdakldfzltfac, lcielrj`t-arf`ct`i r`oare glv` irfv`c Lsfls rlpfi hrawtg, kut glv` ldsa gli sfhcfofmlctifstrfkutfacld macs`qu`cm`s. Yg`s` olmtars glv` olvar`i awc`rs ao mlpftld av`r dlkar, sjfdd`iav`r ucsjfdd`i warj`rs, lci urklc lci malstld lr`ls av`r rurld lci fcdlci r`hfacs.Ourtg`rear`, uc`quld lmm`ss ta appartucfty, mlus`i ky fcstftutfacld w`ljc`ss`s lci samfld`xmdusfac, gls maepauci`i tg` feplmts ao tg`s` oarm`s. Ldd tg`s` maekfc`i glv` d`i ta lolddfch sglr` ao dlkar fcmae` fc cltfacld fcmae`, fcmr`lsfch pr`efues ac guelc mlpftld, lcihrawfch spltfld ifsplrftyldd mactrfkutfch ta rfsfch fc`quldfty. Yg` tgr`` irfv`rs ao rfsfchfc`quldfty mlccat lci sgaudi cat k` kdamj`i, k`mlus` tg`y lr` tg` sle` oarm`s tglt irfv`praiumtfvfty lci fcmae` hrawtg. Ygfs plp`r autdfc`s l cuek`r ao padfmy aptfacs oar Lsflcpadfmy elj`rs ta macsfi`r fc liir`ssfch rfsfch fc`quldfty. Yg`s` aptfacs, lfefch ta `quldfz`appartucftf`s lci, tg`r`ky, r`ium` fc`quldfty, fcmdui` `oofmf`ct ofsmld e`lsur`s tglt r`ium`fc`quldfty fc guelc mlpftld, padfmf`s tglt warj tawlri fcmr`lsfch tg` cuek`r lci quldfty ao

naks, fct`rv`ctfacs tglt clrraw spltfld ifsplrfty, lci r`oares tglt str`chtg`c hav`rclcm`,d`v`d tg` pdlyfch of`di, lci `dfefclt` samfld `xmdusfac.

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8/13/2019 Rising Inequality in Asia and Policy Implications

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8/13/2019 Rising Inequality in Asia and Policy Implications

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8/13/2019 Rising Inequality in Asia and Policy Implications

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Ofhur` Hrass Iae`stfm Rraiumt Hrawtg lci Rav`rty [`iumtfac

HIR 5 hrass iae`stfm praiumt.

]aurm`> Jlckur, [., M. [g``, lci N. ^gulch. ;2 Yr`cis, Irfv`rs, lciRadfmy Fepdfmltfacs. Daciac> [autd`ih` / Lsflc I`v`dape`ct Klcj.

Hrawtg lci pav`rty r`iumtfac glv`, gaw`v`r, k``c lmmaeplcf`i ky rfsfch fc`quldfty fcelcy mauctrf`s. Ao tg` ;7 `macaef`s tglt glv` maeplrltfv` iltl k`tw``c tg`

8/13/2019 Rising Inequality in Asia and Policy Implications

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=2?? oar ]uk-]lglrlc Lorfml lci 90?2 oar Dltfc Le`rfml lci tg`Mlrfkk`lcfc`quldfty i`mdfc`i `ds`wg`r`, wftg tg` `xm`ptfac ao tg`Arhlcfsltfac oar @macaefm Ma-ap`rltfac lci I`v`dape`ct (A@MI) mauctrf`s.Yg` elnarfty ao tg` A@MI mauctrf`swftg Hfcf ma`oofmf`cts fc tg` rlch` ao ;092ldsa `xp`rf`cm`i rfsfch fc`quldfty fc tg` dlst twa i`mli`s.9

Ofhur` ;> Lcculd Hrawtg ao Hfcf Ma`oofmf`cts, Lsflc I`v`dape`ct Klcj. ;2

]mgaad-lh` mgfdir`c orae gaus`gadis fc tg` paar`st fcmae` qufctfd` w`r` tgr``ta ofv` tfe`s ls dfj`dy ta k` aut ao prfelry lci s`macilry smgaad ls tg`fr p``rs

fc tg` rfmg`st qufctfd` fc sae` mauctrf`s. Yg` sftultfac wls wars` oar t`rtflry`iumltfac wg`r` paar`r madd`h`-lh` fcifvfiulds w`r`

8/13/2019 Rising Inequality in Asia and Policy Implications

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Xftg o`w `xm`ptfacs, tg` r`hfacs `macaef`s glv` eli` sfhcfofmlct prahr`sstawlri h`ci`r plrfty fc prfelry lci s`macilry `iumltfac. V`t, gfhg h`ci`rifsplrftf`s fc t`rtflry `iumltfac r`elfc fc ]autg Lsfl lci tg` Rlmfofm.

Fc`quldfty ao appartucfty lci fcmae` mlc d`li ta l vfmfaus mfrmd` ls uc`quld

appartucftf`s mr`lt` fcmae` ifsplrftf`s, wgfmg fc turc d`li ta ifoo`r`cm`s fc outur`appartucftf`s oar fcifvfiulds lci gaus`gadis.

=. XGV FC@\PLDFYV ELYY@[]

[fsfch fc`quldfty glep`rs pav`rty r`iumtfac. @macaefm hrawtg wfdd h`c`rlt` l daw`rrlt` ao pav`rty r`iumtfac wg`c fc`quldfty fs fcmr`lsfch tglc wg`c ft r`elfcs ucmglch`iar fs i`mr`lsfch. ]feudltfacs r`v`ld gaw rfsfch fc`quldfty gadis klmj pav`rty r`iumtfac(Ofhur` =). Gli fc`quldfty cat fcmr`ls`i, tg` pav`rty g`limauct rlt` lt tg` $

;6.0% fcst`li ao tg` lmtuld =;.8% fc ;2

8/13/2019 Rising Inequality in Asia and Policy Implications

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LIKF Xarjfch Rlp`r 9?= ^gulch, Jlckur, lci [g``

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Fc`quldfty mlc w`lj`c tg` klsfs ao hrawtg fts`do. Gfhg lci rfsfch fc`quldfty mlc loo`mthrawtg tgrauhg l cuek`r ao `macaefm, samfld, lci padftfmld e`mglcfses. Fc`quldfty aow`ldtg lci fcmae` mlc d`li ta dlrh` ifv`rh`cm`s fc guelc mlpftld. Ygas` wftg dfttd`w`ldtg ar daw fcmae` olm` oarefilkd` mgldd`ch`s fc fcv`stfch fc guelc mlpftld, arw`ldtg- lci fcmae`-`cglcmfch lmtfvftf`s, lci wfdd r`elfc paar. Fc prfcmfpd` tg`y ely k`lkd` ta karraw oar fcv`ste`ct purpas`s, kut fep`ro`mt ofclcmfld elrj`ts, maupd`i wftgatg`r elrj`t olfdur`s, aot`c g`lvfdy macstrlfc tg`fr lkfdfty ta karraw lci fcv`st.

Xfi`cfch fc`quldftyd`lvfch ear` p`apd` lt tg` tap lci kattae ao tg` fcmae`ifstrfkutfacmlc e`lc l seldd`r efiid` mdlss. Hrawtg irfv`c ky lci k`c`oftfch lefiid` mdlss fs ear` dfj`dy ta k` sustlfc`i: katg `macaefmlddy, ta tg` `xt`ct tglt tg`r`ct s``jfch lci marruptfac lssamflt`i wftg gfhgdy macm`ctrlt`i hlfcs ta hrawtg lr`lvafi`i: lci padftfmlddy, ta tg` `xt`ct tglt macodfmt lci garfzactld fc`quldftf`s k`tw``crlmfld lci `tgcfm hraups lr` `lsf`r ta elclh`.

Fc olmt, tg`r` fs l krali macs`csus leach r`s`lrmg`rs ac tg` dfcj k`tw``c fc`quldftylci tg` quldfty ao fcstftutfacs. Ac s`v`rld ife`csfacs, rlchfch orae padftfmld stlkfdfty,

tgrauhg ta fcstftutfacld stlkfdfty lci prap`rty rfhgts, tg` c`hltfv` feplmt ao fc`quldfty acfcstftutfacld quldfty s``es ta k` w`dd `stlkdfsg`i, ldtgauhg tg` twa-wly mlusldfty fs ldsawfi`dy lmm`pt`i. ]fefdlrdy, tg` `oo`mt ao fc`quldfty ac mrfe` lci vfad`cm` lci, tgrauhgtglt, ac tg` fcv`ste`ct mdfelt` fs ldsa r`mahcfz`i.

Ofclddy, hr`lt`r fc`quldfty ely d`li ta l padftfmld klmjdlsg, fc wgfmg pr`ssur` oarhav`rce`cts ta `clmt papudfst padfmy e`lsur`s hraws. Fc r`spacs` ta tg` rfsfchi`elcis, tg` padftfmld pram`ss ely olvar padfmf`s tglt k`c`oft tg` daw`r `ci ao tg`fcmae` ifstrfkutfac fc tg` sgart t`re, kut ldsa gadi klmj `oofmf`cmy lci hrawtg fc tg`dach ruc. Pci`r sumg maciftfacs, tg` fct`r`sts ao tg` padftfmld syst`e ifv`rh` orae tg`fct`r`sts ao tg` `macaey ls l wgad`. Ygfs fs l wfi`spr`li macm`rc fc i`v`dapfch lcii`v`dap`i mauctrf`s ldfj`.

Lsflc hav`rce`cts lr` r`spacifch ta rfsfch fc`quldfty, ls s``c fc tg`fr i`v`dape`ctpdlcs, wgfmg fcmdui` `xpdfmft halds ta elj` hrawtg ear` fcmdusfv`. Fc Fcifl, tg`hav`rce`ct eli` lc `xpdfmft maeefte`ct ta fcmdusfv` hrawtg fc tg` @d`v`ctg Ofv`-V`lrRdlc (;228;2

8/13/2019 Rising Inequality in Asia and Policy Implications

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LIKF Xarjfch Rlp`r 9?= ^gulch, Jlckur, lci [g``

7

tglt lr` c``i`i ta oast`r fccavltfac lci hrawtg. Yg` h`c`rld pukdfm lci padfmy elj`rsfc Lsfl s``e ta k` lwlr` ao tgfs ifstfcmtfac, ls sgawc ky tg` r`sudts orae tg` Xardi_ldu`s ]urv`y lci tg` Lsflc I`v`dape`ct Klcjs surv`y ao Lsflc padfmy elj`rs (LIK;2

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LIKF Xarjfch Rlp`r 9?= ^gulch, Jlckur, lci [g``

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k`tw``c dlkar lci mlpftld. @macaefm trlcsftfac orae l maeelci ta l elrj`t `macaeymlc feprav` `oofmf`cmy lci elj` r`turcs ta lss`ts ear` mdas`dy r`od`mtfv` ao r`saurm`smlrmfty, wgfmg mlc loo`mt fcmae` ifstrfkutfac leach ifoo`r`ct praiumtfv` lss`ts.

Ear`av`r, tg` feplmts ao tg` tgr`` irfv`rs ao hrawtgt`mgcadahfmld prahr`ss,

hdakldfzltfac, lci elrj`t-arf`ct`i r`oaremlc k` h`ahrlpgfmlddy uc`v`c, d`lifch ta lourtg`r mglcc`d ao mglchfch fcmae` ifstrfkutfac> spltfld fc`quldfty. Ygfs fs k`mlus` c`w`macaefm appartucftf`s, r`d`ls`i ky tg`s` irfv`rs, lr` aot`c east `lsfdy s`fz`i kydamltfacs mdas`r ta tg` `xfstfch trli` raut`smalstld lr`ls, oar `xlepd`, cat fcdlciac`slci lr`ls wftg k`tt`r pukdfm fcorlstrumtur`sumg ls urklc damltfacs, cat rurldlr`ls. Lhhdae`rltfac `macaef`s ldsa olmfdftlt` l s`do-p`rp`tultfch pram`ss aofcmr`lsfch macm`ctrltfac. Yg`s` d`li ta sgfots fc fcmae` ifstrfkutfac leach ifoo`r`cth`ahrlpgfm damltfacs.

Fc sue, tg` tgr`` j`y irfv`rs ao hrawtg mlc loo`mt fcmae` ifstrfkutfac tgrauhg tgr``mglcc`ds> mlpftld, sjfdd, lci spltfld kfls. Yg` kfls tawlri mlpftld r`ium`s dlkars sglr`ao cltfacld fcmae` wgfd` fcmr`lsfch tg` fcmae` sglr` ao tg` awc`rs ao mlpftld. ]fefdlrdy,

tg` g`fhgt`c`i i`elci oar k`tt`r sjfdd`i warj`rs rlfs`s tg` pr`efue ac tg`fr `lrcfchs.Lci spltfld ifsplrftf`s lr` k`maefch ear` lmut`: damltfacs wftg sup`rfar fcorlstrumtur`,elrj`t lmm`ss, lci smld` `macaef`s lr` ear` lkd` ta k`c`oft orae mglchfchmfrmuestlcm`s. Ear`av`r, fc`quldfty ao appartucfty elhcfof`s tg` ifstrfkutfacldmacs`qu`cm`s ao tg` tgr`` irfv`rs ao hrawtg. Ygas` fcifvfiulds lci hraups `xmdui`iorae tg` elrj`t k`mlus` ao ifsmrfefcltfac ar fcifvfiuld mfrmuestlcm`s k`yaci tg`frmactrad waudi m`rtlfcdy cat k`c`oft orae tg`s` appartucftf`s.

Ofhur`s 9, 0, lci ? pravfi` `epfrfmld `vfi`cm` ac tgr`` j`y saurm`s ao rfsfch fc`quldftyfc i`v`dapfch Lsfl, marr`spacifch ta tg` tgr`` mglcc`ds i`smrfk`i lkav`> sgfots fcfcmae` ifstrfkutfac k`tw``c sjfdd`i lci ucsjfdd`i dlkar, k`tw``c dlkar lci mlpftld, lcik`tw``c ifoo`r`ct damltfacs.

Ofhur` 9> Fcmae` Fc`quldfty I`maepasftfac ky @iumltfacld Lttlfce`ct aoGaus`gadi G`li

R[M 5 R`apd`s [`pukdfm ao Mgfcl.

]aurm`> Lsflc I`v`dape`ct Klcj stfelt`s usfch ucft-d`v`d iltl.

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8/13/2019 Rising Inequality in Asia and Policy Implications

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LIKF Xarjfch Rlp`r 9?= ^gulch, Jlckur, lci [g``

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LIKF Xarjfch Rlp`r 9?= ^gulch, Jlckur, lci [g``

Maekfc`i Mactrfkutfac ao ]pltfld Fc`quldfty ta Av`rldd Fc`quldfty fc]`d`mt`i Lsflc Mauctrf`s

R[M 5 R`apd`s [`pukdfm ao Mgfcl.

]aurm`> Lsflc I`v`dape`ct Klcj stfelt`s usfch ucft d`v`d iltl.

0. GAX YA [@]RACI YA [F]FCH FC@\PLDFYV

K`mlus` tg` oarm`s k`gfci rfsfch fc`quldfty lr` ldsa tg` `chfc`s ao praiumtfvfty lcifcmae` hrawtg, padfmy elj`rs sgaudi cat gfci`r tg`fr prahr`ss. L ifstfcmtfac c``is tak` eli` k`tw``c tg` fcmae` ifoo`r`cm`s tglt lrfs` ls `macaef`s lci fcifvfiulds tlj`

livlctlh` ao tg` c`w appartucftf`s orae t`mgcadahy, trli`, lci `oofmf`cmy-`cglcmfchr`oares, lci tgas` tglt lr` h`c`rlt`i ky uc`quld lmm`ss ta elrj`t appartucftf`s lcipukdfm s`rvfm`s. Ygfs dltt`r saurm` ao fc`quldfty r`qufr`s l padfmy r`spacs` sfcm` ft h`tselhcfof`i ky tg` irfvfch oarm`s ao hrawtg, d`lis ta fc`oofmf`cmy, lci uci`refc`s tg`sustlfclkfdfty ao hrawtg.

Yg` Lsflc I`v`dape`ct Autdaaj ;2 (f) sp`cifch ear` ac `iumltfac lcig`ldtg, `sp`mflddy oar paar`r gaus`gadis: (ff) i`v`dapfch lci sp`cifch ear` ack`tt`r-tlrh`t`i samfld prat`mtfac smg`e`s, fcmduifch maciftfacld mlsg trlcso`rstglt tlrh`t fcmae` ta tg` paar kut ldsa fcm`ctfvfz` tg` kufdiup ao guelc mlpftld:(fff) swftmgfch ofsmld sp`cifch orae h`c`rld prfm` suksfif`s (sumg ls ac ou`d) tatlrh`t`i trlcso`rs: lci (fv) krali`cfch tg` tlx kls` lci str`chtg`cfch tlxliefcfstrltfac oar hr`lt`r lci ear` `quftlkd` r`v`cu` eakfdfzltfac.

Fct`rv`ctfacs ta liir`ss dlhhfch r`hfacs. Yg`s` fcmdui`> (f) fepravfch trlcspartlci maeeucfmltfacs c`twarjs k`tw``c ear` i`v`dap`i lci paar`r r`hfacs: (ff)mr`ltfch hrawtg pad`s fc dlhhfch lr`ls: (fff) str`chtg`cfch ofsmld trlcso`rs oar

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8/13/2019 Rising Inequality in Asia and Policy Implications

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LIKF Xarjfch Rlp`r 9?= ^gulch, Jlckur, lci [g``

(f) olmfdftltfchstrumturld trlcsoareltfac ta mr`lt` l hr`lt`r cuek`r ao praiumtfv` naks, lci

elfctlfcfch l kldlcm`i s`mtarld maepasftfac ao hrawtg k`tw``c elcuolmturfch,s`rvfm`s, lci lhrfmudtur`: (ff) suppartfch i`v`dape`ct ao seldd lci e`ifue-sfz`i `ct`rprfs`s: (fff) r`eavfch olmtar elrj`t ifstartfacs tglt olvar mlpftld av`rdlkar: (fv) `stlkdfsgfch ar str`chtg`cfch dlkar elrj`t fcstftutfacs: lci (v)fctraiumfch pukdfm `epdaye`ct smg`e`s ls l t`eparlry krfih` ta liir`sspamj`ts ao uc`epdaye`ct lci uci`r`epdaye`ct.

?. ]PEEL[V> YAXL[I FCMDP]F_@ H[AXYG FC L]FL

Irfv`c ky hdakldfzltfac, t`mgcadahfmld prahr`ss, lci elrj`t-arf`ct`i r`oare,i`v`dapfch Lsfl gls gli l r`elrjlkd` p`rfai ao hrawtg lci pav`rty r`iumtfac.

Gaw`v`r, tg` irfv`rs ao hrawtg lr` ldsa elhcfoyfch tg` `oo`mts ao fc`quldftf`s fcpgysfmld lci guelc mlpftld, d`lifch ta rfsfch fcmae` fc`quldfty. Yg`s` oarm`s r`qufr`Lsflc padfmy elj`rs ta r`iaukd` tg`fr `ooarts ta h`c`rlt` ear` praiumtfv` naks: `quldfz`appartucftf`s fc `epdaye`ct, `iumltfac, lci g`ldtg: lci liir`ss spltfld fc`quldfty.Xftgaut sumg hrawtg-`cglcmfch padfmf`s, Lsfl ely k` pudd`i fcta fc`oofmf`ct papudfstpadfmf`s tglt k`c`oft c`ftg`r hrawtg car `qufty.

Yg` padfmy aptfacs autdfc`i macstftut` j`y `d`e`cts ao l strlt`hy oar fcmdusfv` hrawtg.Kralidy, fcmdusfv` hrawtg mlc k` i`ofc`i ls hrawtg maupd`i wftg `quldfty aoappartucfty, suppart`i ky tgr`` padfmy pfddlrs> sustlfc`i hrawtg ta mr`lt` praiumtfv`naks oar l wfi` s`mtfac ao tg` papudltfac: samfld fcmdusfac ta `quldfz` lmm`ss taappartucfty: lci samfld slo`ty c`ts ta eftfhlt` vudc`rlkfdfty lci rfsjs lci pr`v`ct

`xtr`e` pav`rty (s`` Ofhur` 8 lci ldsa ^gulch lci Ldf Z;2 Radfmy Rfddlrs ao Fcmdusfv` Hrawtg

]aurm`> Lilpt`i orae gulch (;2

8/13/2019 Rising Inequality in Asia and Policy Implications

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LIKF Xarjfch Rlp`r 9?= ^gulch, Jlckur, lci [g``

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LIKF Xarjfch Rlp`r 9?= ^gulch, Jlckur, lci [g``

Xardi Klcj.

Rdlccfch Maeefssfac Hav`rce`ct ao Fcifl. ;227. @d`v`ctg Ofv` V`lr Rdlc ;228 Axoari Pcfv`rsfty Rr`ss. Lvlfdlkd`>gttp>//pdlccfchmaeefssfac.cfm.fc/pdlcs/pdlcr`d/ofv`yr/w`dmae`.gted

]ac, G. G. ;2