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January 17, 2021
Business News

Despite Economic Growth in Asia-Pacific, Inequality Has Increased

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By Vasinatta Yama – EM TV, Port Moresby 

A recent survey report by the United Nation’s on the economic and social survey of Asia and the Pacific reveals that although there has been improvement in economic growth, income inequality has increased.

The exporting of mineral production has pushed the growth of PNG to 15 per cent this year. The report was officially launched by the Governor of the Bank of PNG, Loi Bakani, yesterday.

The 15 per cent increase in the economic growth of PNG has increased the growth of other Pacific Island countries to 9.7 per cent. This is the fastest pace in the Asia-Pacific region which has resulted in the decline of the inflation rate.

However, the survey report showed that the economic growth in the developing Asia-Pacific region was held back because of infrastructure shortages and commodity dependence.

Urban infrastructure was growing, while rural communities lacked basic infrastructure.

To address these issues, recommendations were set for countries in the region to have better fishery and forestry sectors to support the livelihood of people.

Even though the rates of extreme poverty have declined, Mr Naidu said, the presence of economic growth is not felt across the regions.

There has been increase in the main income, but it has not been shared equally. There is also a significant difference between rural and urban sectors, and gender inequality.

The three main recommendations from the report suggest that if the government wants to address the neglect of the rural sector, they must increase agriculture productivity, and develop tourism.

They must also foster financial inclusion and small and medium enterprises.                

Meanwhile, the policy from the survey report recommends the strengthening of the macro-economic policy by reducing non-development expenditure like defence and energy subsidies.

Furthermore, the report also recommends for the increase of access to affordable health systems, and expanded investments in education.

 

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