Can globalization help eliminate poverty ? How can the markets intervene and nudge Governments into making investments for this ? The Asian Development Bank has come up with a plan
Many Asian governments are cash-strapped and shackled by debt, thus not enough is spent on education, health care and other social services people in developed nations take for granted. Making less than $2 a day may put some food on the table, but it won’t go far to pay for school. In other words, large portions of Asia’s future workforces aren’t being adequately trained to compete in the age of globalization. Multinational companies are depending on rising Asian incomes to bolster consumer spending and spur demand for cars, electronics, travel and myriad other goods and services. At the moment, developing Asia’s growth is even helping Japan’s much larger economy shake a 14-year slumber.
The Manila-based ADB is working to put the risks of poverty squarely on investors’ radar screens. It’s an intriguing strategy to nudge governments to make sure economic growth reaches the poor. If investors and companies increasingly voice concerns about poverty, officials in Beijing, Jakarta, Manila, New Delhi and elsewhere will find it harder to ignore it.[Poverty Is a Growing Risk to Asian Markets]