Closing Development Gaps: Challenges and Policy Options

34 Pages Posted: 23 Aug 2010

See all articles by Douglas Brooks

Douglas Brooks

Asian Development Bank

Rana Hasan

Asian Development Bank; University of Maryland - Department of Economics

Jong-Wha Lee

Korea University

Hyun H. Son

Asian Development Bank

Multiple version iconThere are 2 versions of this paper

Date Written: July 2010

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.

Keywords: Development gaps, economic growth, human capital, infrastructure, governance, social protection, health, education, trade, finance

JEL Classification: O10, O15, O16, O20, O24, D60, F10, F21, F35, I00

Suggested Citation

Brooks, Douglas and Hasan, Rana and Lee, Jong-Wha and Son, Hyun H., Closing Development Gaps: Challenges and Policy Options (July 2010). Asian Development Bank Economics Working Paper Series No. 209. Available at SSRN: https://ssrn.com/abstract=1663440 or http://dx.doi.org/10.2139/ssrn.1663440

Douglas Brooks (Contact Author)

Asian Development Bank ( email )

6 ADB Avenue, Mandaluyong City 1550
Metro Manila
Philippines

Rana Hasan

Asian Development Bank ( email )

6 ADB Avenue, Mandaluyong City 1550
Metro Manila
Philippines

University of Maryland - Department of Economics ( email )

College Park, MD 20742
United States
808-944-7590 (Phone)
808-944-7399 (Fax)

Jong-Wha Lee

Korea University ( email )

Anam-dong, Sungbuk-Ku
Dept. of Economics
Seoul, 136-701
82-2-3290-2216 (Phone)
82-2-928-4948 (Fax)

Hyun H. Son

Asian Development Bank ( email )

6 ADB Avenue, Mandaluyong City 1550
Metro Manila
Philippines

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