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Closing Development Gaps: Challenges and Policy

  • H. Brooks, Douglas

    (Asian Development Bank)

  • Hasan, Rana

    (Asian Development Bank)

  • Lee, Jong-Wha

    (Asian Development Bank)

  • H. Son, Hyun

    (Asian Development Bank)

  • Zhuang, Juzhong

    (Asian Development Bank)

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

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Paper provided by Asian Development Bank in its series ADB Economics Working Paper Series with number 209.

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Length: 34 pages
Date of creation: Jul 2010
Date of revision:
Handle: RePEc:ris:adbewp:0209
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