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Im a development worker

PUBLISHER

Ann Quon

MANAGING EDITOR

Andrew Perrin

SENIOR EDITOR

John Larkin

EDITORIAL ADVISOR

Juzhong Zhuang

ASSOCIATE EDITOR

Jenina Alli

PRODUCTION MANAGER

Miguel Paulino

COPY EDITORS

Ma. Priscila del Rosario

Tuesday Soriano

DESIGN

Cleone Baradas

Development Asia features development issues important to Asia and the Pacific. It is published twice a year by the Asian Development Bank (ADB). The views expressed in this magazine are those of the authors and do not reflect the views and policies of ADB. Use of the term country does not imply any judgment by the authors or ADB as to the legal or other status of any territorial entity.

Advertising of any specific commercial product, process, service by trade name, trademark, manufacturer, or otherwise, in this publication does not constitute or imply ADBs endorsement, recommendation, or favoring of any of the product or the entity thereof.

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Material published in Development Asia and on . Photographs not owned by ADB require permission from the copyright holder for reprinting.

Development Asia

Department of External Relations

Asian Development Bank

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1550 Metro Manila, Philippines

www.adb.org

Note: In this publication, $ refers to US dollars

2013 Asian Development Bank ISSN 1998-7528

Inside

SPECIAL REPORT: INEQUALITY

The Wealth Gap

Inequality is hitting alarming highs in Asia as the fruits of growth skew to the rich

Cover Illustration: Otto Dettmer

Defining Inequality Settling on a definition has clarified the issues at stake

Striking A Balance A little incentive can go a long way

Inequality in Asia Illustrating the inequality challenge

Q&A: The Reformer Indias top finance official P. Chidambaram discusses progress on curbing inequality

The Growth Conundrum The economies of the Peoples Republic of China, India, and Indonesia are growing. But so is inequality

Profiles of Inequality Shanghai. Bengaluru. Jakarta

Opinion: Justin Yifu Lin Sweeping market reforms would help Beijing narrow wealth gaps

Less Unequal Than Others Some Asian countries have grown without leaving anyone behind

Raising Cambodia Cambodia is winning its battle against child mortality

In Search Of A Cure Solutions aplenty, but common ground is rare

Slums Reconsidered Slums may be eyesores, but they can also be dynamic economies

Digital Dollars Thousands of people in developing countries are earning real money working in virtual worlds

Results First An innovative development aid model focuses on outcomes over inputs

DEPARTMENTS

Situation Report

On The Record

On The Web

Review

Development Agenda

Black & White

PUBLISHERS

NOTE

ASIAS INEQUALITY CHALLENGE

BENEATH THE GLOSS of Asias newfound prosperity lies an unsettling reality. Rising inequality has denied the benefits of Asias economic growth to many millions of its citizens. The problem is worsening as the regions rich get richer much faster than the poor, who miss out on the income, education, and health care they need to lead fulfilling lives.

In this issues Special Report, Development Asia examines Asias widening inequality from many different perspectives. We look at the role of globalization in producing inequality, and consider the disputed relationship between inequality and economic growth.

Asia isnt the only region suffering from a wealth gap, but unlike others it has failed so far to narrow the divide. Most of its large economies have shown rising income inequality since the 1990s, and rural poverty is outpacing urban poverty across much of the continent. If left unchecked, the consequences of this trend could be dire.

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