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Closing Development Gaps: Challenges and Policy Options

Author

Listed:
  • Douglas H. Brooks

    (Asian Development Bank)

  • Rana Hasan

    (Asian Development Bank)

  • Jong-Wha Lee

    (Asian Development Bank)

  • Hyun H. Son

    (Asian Development Bank)

  • Juzhong Zhuang

    (Asian Development Bank)

Abstract

There are significant income and nonincome development gaps around the world. Closing these gaps will require not only increasing and sustaining economic growth in low-income regions, but also policies that close nonincome development gaps directly. Governments need to support private investment and entrepreneurship by investing in human capital and infrastructure; developing the financial sector; improving governance; and eliminating other impediments created by market, institutional, or policy failures. Policy makers should improve access to and quality of health, education, and other social services. This means better targeting and increased public spending on social services that directly benefit the poor; innovative delivery mechanisms informed by rigorous evaluation; and social protection systems. The experience of developing Asia and others has shown that external trade and finance—including foreign direct investment, remittances, and aid—play a critical role. It is therefore imperative that governments continue to promote globalization and regional integration.

Suggested Citation

  • Douglas H. Brooks & Rana Hasan & Jong-Wha Lee & Hyun H. Son & Juzhong Zhuang, 2010. "Closing Development Gaps: Challenges and Policy Options," Asian Development Review, Asian Development Bank, vol. 27(2), pages 1-28.
    • Handle: RePEc:ris:adbadr:2721
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • D60 - Microeconomics - - Welfare Economics - - - General
    • F10 - International Economics - - Trade - - - General
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F35 - International Economics - - International Finance - - - Foreign Aid
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • O20 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - General
    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy

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