Sustaining Asias Economic Recovery in the 21 st Century 7 th Asia Economic Forum Phnom Penh, Cambodia 31 July 2011 Dr Thein Swe 1: Developing countries are contributing more to global growth Source: World Bank, World Development Indicators 2011. 2. Challenges to sustain Asias economic recovery Poverty and inequalities Gap between surging economies & poverty Competition for natural resources Economic and social disparities Environmental challenges Transparency, Accountability & governance The middle income trap 3: Three types of economies in Asia Low income/growth economies (LGE) High growth middle income economies (MIE) High-income developed economies (HIDE) 4: Low Income Economies market share in global market Source: 2011 World Development Indicators, World Bank. 5: Inequality is increasing in Asian Countries G i n i C o e f f i c i e n t Change Country Initial Year Final Year ( % ) Source: World Bank, World Development Indicators, 2011. 6. Primary Commodity Prices started to rise again from Source: World Bank Commodity Price Data 7: Avoiding the middle income trap Source: IMF World Economic Outlook, October 2010. 8: Stages of Industrialization 9: Firms in East Asia and South Asia have the lowest tax rate Source: World Bank, Doing Business 2011 10: Rankings on Ease of Doing Business Singapore11 Thailand1916 Malaysia2123 Viet Nam7888 Indonesia Cambodia Philippines Lao PDR Source: World Bank, Doing Business 2011, November 4, 2010. The End