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The middle class in Emerging Asia: Champions for more inclusive societies?

Author

Listed:
  • Antoine Bonnet
  • Alexandre Kolev

Abstract

As Asian societies continue to undergo rapid economic transformation, income distribution and social stratification are set to change radically. A primary characteristic of this evolution is the emergence of wealthier Asian middle-income classes. While middle-income classes are a heterogeneous group, they often come with new policy expectations, and the extent to which they will call for policy changes that are beneficial to more fragile segments of society remains unclear. This paper investigates the characteristics of different income classes in Asia in order to explore the extent to which the emergence of wealthier Asian middle-income classes could become a driver for more inclusive societies. From this perspective, we assess whether middle-income classes share common characteristics with the poor and the near-poor in six Asian countries, i.e. Cambodia, China, Indonesia, Thailand, Pakistan and Viet Nam. The paper finds that, in some aspects, middle-income classes share a number of similar characteristics with lower income classes. We discuss how this resemblance could result in support for policies that could benefit larger segments of society. We also underline the necessity to better integrate the needs of the poor and the near-poor in policy discussions, especially in areas where the interests of lower and upper income classes do not necessarily converge. La rapide transformation des économies émergentes d’Asie a radicalement modifié leur distribution du revenu et leur structure sociale. Cette évolution est notamment caractérisée par l’augmentation du revenu des classes moyennes. Quoique ces classes moyennes sont fortement hétérogènes, il est généralement admis que leur émergence s’accompagne de nouvelles préférences et demandes sur le plan des politiques publiques, et l’alignement de ses préférences avec celles de segments plus fragiles de la société reste à établir. Cet article évalue la mesure dans laquelle les classes moyennes sont différentes des populations pauvres et quasi-pauvres, et, sur cette base, si elles peuvent apparaître comme des moteurs de croissance inclusive, dans six pays asiatiques émergents : le Cambodge, la Chine, l’Indonésie, la Thaïlande, le Pakistan et le Viet Nam. L’article met en évidence une série de similarités entre leur classes moyennes respectives et des groupes au revenu moindre. Nous observons comment ces similarités peuvent soutenir des politiques bénéficiant à de larges pans de la société. Nous soulignons également la nécessité d’intégrer d’avantage les besoins spécifiques des foyers pauvres et quasi-pauvres dans l’établissement de politiques publiques, en particulier dans des domaines où leurs intérêts divergent de ceux des classes moyennes et supérieures.

Suggested Citation

  • Antoine Bonnet & Alexandre Kolev, 2021. "The middle class in Emerging Asia: Champions for more inclusive societies?," OECD Development Centre Working Papers 347, OECD Publishing.
  • Handle: RePEc:oec:devaaa:347-en
    DOI: 10.1787/93af380b-en
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    More about this item

    Keywords

    Asia; Income distribution; Inequalities; Social Classes;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • N35 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - Asia including Middle East
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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