IMF cites three areas for Asia’s dream
AN International Monetary Fund (IMF) higher official had cited three key areas to fulfill Asia’s dream—the path to achieving lasting growth and shared prosperity.
IMF Managing Director Christine Lagarde recently pointed out the three areas to Asia’s recipe for growth, adding that like a field that has been farmed year after year, it may need to be rejuvenated. “First and foremost, investing in physical capital has been an important part of Asia’s growth success. Now, a new wave of growth can come from investing in what economists call ‘human capital’—that is people!” she said.
Lagarde mentioned that the second is creating the right climate to boost investment and growth. “Many Asian economies have now reached a level of development that we have seen before in other countries and regions—where sustained slowdowns in growth are most likely to occur.
This is the so-called middle-income trap,” she stated. Third and final, the IMF official noted that Asia needs an environment that supports sustainable growth. “The environment affects everything. The food we eat, the water we drink, the air we breathe,” she said. Moreover, Lagarde said that no individual is too small to be part of Asia’s success, adding that no aspiration is too big. Asia’s dream belongs to all Asians. “I believe that Asia’s leadership in the global economy will go from strength to strength,” the IMF official said.
Asia has transformed the idea of economic cooperation and partnership and five years into the crisis, we can see how costly the absence of effective cooperation can be, Lagarde said. She also noted that, Asia needs the world; but the world also needs Asia and the IMF needs Asia’s strength and leadership too.