(22/03/2013)
Growth forecasts for Cambodia, Lao PDR,
Myanmar and Viet Nam (CLMV) over the medium term is expected to be
between 6-7%, outperforming economies of the ASEAN-6 countries according
to the OECD Southeast Asian Outlook 2013: Narrowing the Development
Gap. Growth momentum remains robust and should pave the way for the CLMV
countries to pull within the ranks of the other Member States.
At the inaugural NDG (Narrowing the
development gap) Lecture Series, organised at the ASEAN Secretariat in
collaboration with the OECD Development Centre, speakers from the OECD
Development Centre, the Economic Research Institute for ASEAN and East
Asia and the ASEAN Secretariat tackled policy issues facing growth in
the CLMV countries.
“Disparities need to be examined beyond
income level differences and also directed towards areas where gaps are
largest, such as poverty and human capital development", says Kensuke
Tanaka, Head of Asia Desk, OECD Development Centre based on the latest
report of the Southeast Asian Economic Outlook 2013.
According to the Narrowing the
Development Gap Indicators (NDGIs) recently created by the OECD
Development Centre and the ASEAN Secretariat, in an index scale of 0 to
10 - where 0 denotes no gap and 10 the widest gap - the gap between CLMV
and ASEAN-6 are widest at 4.4 and 4.0 in poverty and human resource
development indicators, respectively. Gaps in other indices are at 3.5
in infrastructure, 3.1 in trade and investment, 2.9 in ICT, and 1.5 in
tourism.
"Evidence suggests that welfare gains
from the AEC can reduce economic disparities in the region", says Dr
Aladdin Rillo, Head of the ASEAN Integration Monitoring Office (AIMO) at
the ASEAN Secretariat. "To this end, Member States must pursue with
vigour its implementation of the programmes in the AEC Blueprint as a
strategy for sustained growth in the region."
ASEAN's launch of the Initiative for
ASEAN Integration (IAI) in 2000 was specifically meant to deal with
issues on narrowing the divide where equitable and inclusive development
will be a defining feature of ASEAN's integration efforts. The IAI Work
Plan II (2009-2015) serves as the main tool to remove obstacles
standing in the way of an equitable growth path in key sectors such as
trade, investment and tourism.
Implementing structural policies
necessary for enhancing productivity is equally critical to the success
of the CLMV countries and ASEAN as a whole, contends Dr Sothea Oum of
the Economic Research Institute for ASEAN and East Asia. Higher
investment in social infrastructure, especially in education and health
is of particular importance.
Dr Pitchaya Sirivunnabood, Senior
Economist of AIMO, stressed that promoting productivity among CLMV
officials is also necessary because limited capacity at the national
level will mean less effective integration at the regional level.
The journey of building an ASEAN
Community by 2015 requires countries, including the newer members, to
not only stay on the same track but to also keep pace. Narrowing the
Development Gap, thus, remains essential to the ASEAN integration
process.
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