UN ESCAP launches the Economic and Social Survey of Asia and the Pacific 2013
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 | Professor Biman Prasad from the Faculty of Business and Economics introducing the findings of the UN ESCAP 2013 Survey |
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A survey by the United Nations Economic and Social Commission for Asia and the Pacific (UN ESCAP) has highlighted how the Pacific is expected to see subdued growth in 2013.
The UN ESCAP Pacific Office in collaboration with the University of the South Pacific launched the Economic and Social Survey of Asia and the Pacific 2013, at the Holiday Inn in Suva, on 18 April, 2013.
The theme for the survey was “Forward-Looking Macroeconomic policies for Inclusive and Sustainable Development”.
ESCAP with the help of various consultants has presented that macroeconomic policies can play a vital role in reorienting the region towards a more inclusive and sustainable growth path.
“The survey is a flagship publication of ESCAP; but the survey is not just an ESCAP product but is the result of contributions from academics and international experts throughout the region and truly represents a collaborative output,” said David Smith, ESCAP Pacific Office Deputy Head and Senior Economist.
The findings and conclusions of the report were presented by Professor Biman Prasad from the Faculty of Business and Economics (FBE), who was one of the international experts who contributed to the report.
The survey states that growth in developing Pacific Island economies is expected to slow down with Papua New Guinea, the sub region’s largest economy, is expected to see a sharp, sector-led slowdown.
However, Fiji is expected to experience a slight increase in its Gross Domestic Product (GDP) growth in 2013. The economy is projected to grow up to 2.7 percent, 0.2 percent more than last year.
Professor Prasad said “There is a need for a paradigm shift in macro-economic policy-making; a new development paradigm which would be more transformative and people-centric.”
He said the “’Grow first, distribute and clean up later’ approach was no longer viable and acceptable or probably was not viable and acceptable in the first place”.
“The survey comes at a critical juncture for the Asia-Pacific region,” Professor Prasad said.
The survey states that conventional macroeconomic policies have over-emphasised the role of stabilizing debt and price and neglected the developmental role.
Professor Prasad said that in order to initiate forward-looking macroeconomic policies that will allow Pacific countries to have inclusive and sustainable development, Pacific leaders need to draw examples from other countries in the developing world which are employing such policies.
“We also need to look at what is happening in China,” he said, quoting China’s current policies aimed at reducing reliance on export products and to boost economic demand.
The survey states that Thailand and China are the model countries that are pro-inclusive growth policies.
With Thailand’s recent minimum wage hikes, that could increase job growth and China’s current policies aiming to reduce reliance on export products and boost domestic demand, the two economies are expected to trigger positive national growth.
Professor Prasad highlighted the need to set up regional institutions to address natural disasters in the Pacific region.
He also elaborated on the survey’s proposed illustrative policy package to promote inclusive and sustainable development in:
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A job guarantee programme
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A universal non-contributory pension for all aged 65 or older
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Benefits to all persons with disabilities, ages 15 to 65
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Increasing the share of public health expenditures; 5 percent of GDP by 2030
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Universal enrolment in primary (by 2020) and secondary (by 2030) education
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Energy access to all; modern energy services by 2030.
Professor Prasad also said developing other sectors of the nation will also contribute to economic growth.
“Investing in social and environmental pillars fortifies the economic pillar, and leads to sustained, inclusive and equitable economic growth,” he said.
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