Home Today's Paper Most Popular Video Gallery Photo Gallery
Subscription Blog Signin Register
Logo
Saturday, January 19, 2019 01:12:45 PM
Follow Us On: Facebook Twitter Twitter Twitter Twitter

Mobilizing finance for inclusive economic growth

By
10th-May-2018       
Comments
Share your thought
Post a comment »
Read all () »

Shamshad Akhtar :
Asia and the Pacific remains the engine of the global economy. It continues to power trade, investment and jobs the world over. Two thirds of the region's economies grew faster in 2017 than the previous year and the trend is expected to continue in 2018. The region's challenge is now to ensure this growth is robust, sustainable and mobilised to provide more financing for development. It is certainly an opportunity to accelerate progress towards achieving the 2030 Agenda for Sustainable Development.
Recent figures estimate economic growth across the region at 5.8 per cent in 2017 compared with 5.4 per cent in 2016. This reflects growing dynamism amid relatively favourable global economic conditions, underpinned by a revival of demand and steady inflation. Robust domestic consumption and recovering investment and trade all contributed to the 2017 growth trajectory and underpin a stable outlook.
Risks and challenges nevertheless remain. Rising private and corporate debt, particularly in China and countries in South-East Asia, low or declining foreign exchange reserves in a few South Asian economies, and trends in oil prices are among the chief concerns. Policy simulation for 18 countries suggests a $10 rise in the price of oil per barrel could dampen GDP growth by 0.14 to 0.4 per cent, widen external current account deficits by 0.5-to 1.0 percentage points and build inflationary pressures in oil-importing economies. Oil exporters, however, would see a positive impact.
These challenges come against the backdrop of looming trade protectionism. Inward-looking trade policies will create uncertainty and would entail widespread risks to region's export and their backbone industries and labour markets. While prospects for the least developed countries in the region are close to 7 per cent, concerns persist given their inherent vulnerabilities to terms-of-trade shocks or exposure to natural disasters.
The key questions are how we can collectively take advantage of the solid pace of economic expansion to facilitate and improve the long-term prospects of economies and mobilize finance for development as well as whether multilateral institutions, such as the World Trade Organization membership can resolve the global gridlock on international trade?
Economic and financial stability along with liberal trade access to international markets will be critical for effective pursuit of the 2030 Agenda. Regional economies, whose tax potential remains untapped, now need to lift domestic resource mobilization and prudently manage fiscal affairs. Unleashing their financial resource potential need to be accompanied by renewed efforts to leverage private capital and deploy innovative financing mechanisms. The investment requirements to make economies resilient, inclusive and sustainable are sizeable - as high as $2.5 trillion per year on average for all developing countries worldwide. In the Asia-Pacific region, investment requirements are also substantial but so are potential resources. The combined value of international reserves, market capitalization of listed companies and assets held by financial institutions, insurance companies and various funds is estimated at some $56 trillion. Effectively channelling these resources to finance sustainable development is a key challenge for the region.
The need to come up with supplementary financial resources will remain. Public finances are frequently undermined by a narrow tax base, distorted taxation structures, weak tax administrations, and ineffective public expenditure management. This has created problems of balanced fiscalization of sustainable development, even if the national planning organizations have embraced and integrated sustainable development agenda in their forward looking plans.
Despite a vibrant business sector, the lack of enabling policies, legal and regulatory frameworks, and large informal sectors, have deterred sustainability and its appropriate financing. The external assistance from which some countries benefit is insufficient to meet sustainable development investment requirements, a problem often compounded by low inbound foreign direct investment. Capital markets in many countries are underdeveloped and bond markets are still in their infancy. Fiscal pre-emption of banking resources is quite common. For those emerging countries which have successfully tapped international capital markets, a tightening of global financial conditions means borrowing costs are on the rise.
Our ESCAP flagship report, Economic and Social Survey of Asia and the Pacific 2018 (Survey 2018) which has been launched today calls for stronger political will and governments strengthening tax administrations and expanding the tax base. If the quality of the tax policy and administrations in Asia-Pacific economies matches developed economies, the incremental revenue impact could be as high as 3 to 4 per cent of GDP in major economies such as China, India and Indonesia and steeper in developing countries. Broadening the tax base by rationalizing tax incentives for foreign direct investment and introducing a carbon tax could generate almost $60 billion in additional tax revenue per year.
But government action must be complemented by the private sector to effectively pursue sustainable development. The right policy environment could encourage private investment by institutional investors in long-term infrastructure projects. Structural reforms should focus on developing enabling policy environment and institutional setting designed to facilitate public-private partnerships, stable macroeconomic conditions, relatively developed financial markets, and responsive legal and regulatory frameworks.
Finally, while much of the success in mobilizing development finance will depend on the design of national policies, regional cooperation is vital. Coordinated policy actions are needed to reduce tax incentives for foreign direct investment and to introduce a carbon tax. For many least developed countries, the role of external sources of finance remains critical. In many cases, the success of resource mobilization strategies in one country is conditional on closer regional cooperation. ESCAP's remains engaged and its analysis can support the planning and cooperation needed to effectively mobilize finance for sustained, inclusive and sustainable economic growth.

(Dr. Shamshad Akhtar is the Under-Secretary-General of the United Nations and Executive Secretary of Economic and Social Commission for Asia and the Pacific (ESCAP).

Tariff
Add Rate

News Archive

Inside The New Nation

City »

Information Minister Dr. Hasan Mahmud speaking at the extended meeting of Awami League at the party office in the city's Bangabandhu Avenue on Friday.


.

International »

Modi's pre-election handouts to cost India billions, breach fiscal targets


Reuters, New Delhi :A series of vote-catching measures planned by Indian Prime Minister Narendra Modi as he braces for a difficult general election may cost more than 1 trillion rupees ($14 billion), two sources with direct knowledge of the matter said.Much of the cost of the extra spending or revenue ...

Cricket »

Dhoni, Jadhav power India to ODI series victory


Agency :MS Dhoni and Kedhar Jadhav scored half-centuries as India won the third and final ODI against Australia by seven wickets at Melbourne on Friday to seal the series 2-1.Chasing 231 to win, Dhoni (87*) and Jadhav (61*) put together a 121-run partnership to take India home after the bowlers, ...

Entertainment »

Achol returns acting slowly


Sheikh Arif Bulbon :Popular film actress of present time Achol has returned to acting but with the appearance of anger. Her elder sister Moonmoon is attached with the underworld. When she knows the matter she becomes anger. Achol will be seen by this way in Mizanur Rahman Mizan’s movie Ragi. ...

Entertainment »

Zahid, Mim, Ferdous after a decade


Sheikh Arif Bulbon :Zahid Hasan, Ferdous and Bidya Sinha Saha Mim worked together in late writer, novelist and filmmaker Humayun Ahmed directed in a movie titled Aamar Achhey Jol 10 years ago. Though Zahid Hasan and Ferdous worked under Humayun Ahmed directed movies and dramas but Mim for the first ...

Editorial »

Corrupt practice should be stopped in Chattogram Port


THE fraud syndicates in connivance with some dishonest clearing and forwarding (C&F) agents in the last two years released 4,000 consignments from Chattogram Port using forged documents and other illegal ways. News media reported that these gangs stole and misused the identities of two former Customs Officials of the Chattogram ...

Cricket »

Warner to return to Australia from BPL with elbow injury


After Steven Smith, David Warner, too, will make an early exit from the Bangladesh Premier League(BPL). The 32-year-old will return to Australia for medical assessment after having reporting pain in his elbow, Cricket Australia confirmed."David has reported some pain in his right elbow. He will return to Australia on January ...

Sports »

Pliskova fires up to reach Aussie Open third round


AFP, Melbourne :Seventh seed Karolina Pliskova recovered from a slow start to storm home against unseeded American Madison Brengle and grab a spot in the Australian Open third round Thursday.The 26-year-old Czech went down a set before unleashing a devastating flurry of aces and winners in her 4-6, 6-1, 6-0 ...

International »

Vietnam prepares for Kim Jong Un visit amid talks of second summit with Trump


Reuters, Hanoi  :Hanoi is preparing to receive North Korean leader Kim Jong Un for a state visit, two sources told Reuters, while officials and diplomats said Vietnam is keen to host a second summit between Kim and U.S. President Donald Trump.A source familiar with the matter said Kim will travel ...

Editorial »

Ensure ideal working atmosphere for women


THE bike of Shahanaj Akhter, who became a social media sensation recently for her struggle to maintain her family by offering ridesharing services, was recovered from Raghunathpur area in Narayanganj on early Wednesday hours after it was reportedly stolen. Police arrested a Masters student in English Department of Tejgaon College ...

Football »

Struggling Fulham sign Babel from Besiktas


Fulham signed former Liverpool forward Ryan Babel from Besiktas on Tuesday as the Premier League strugglers bid to bolster their spluttering attack and avoid relegation.Netherlands international Babel has joined Claudio Ranieri's side, who sit 19th and five points from safety, until the end of the season and could make his ...

Football »

Awami League President and Prime Minister Sheikh Hasina receiving a football ( as a souvenir) from Senior Vice-President of Bangladesh Football Federation (BFF) Abdus Salam Murshedy, MP, when a delegation of BFF led by its President Kazi Md Salahuddin met her at the Gono Bhaban on Tuesday night.


International »

Brexit deadline could be pushed back on UK request: French minister


AFP, Paris :The European Union could push back the looming March 29 Brexit deadline if London made such a request, France's Europe Minister Nathalie Loiseau said on Wednesday."At the time of speaking, it's just a theory because Mrs May has never asked for it and neither has anyone in her ...

International »

Australian towns among hottest spots on Earth as heatwave sizzles


Australian towns were among the hottest places on Earth this week as a severe heatwave hit the continent's southeast, with forecasters warning of more record-breaking temperatures before the weekend.The past four days were among the country's top 10 warmest on record, with temperatures nearing 50 degrees Celsius (122 degrees Fahrenheit) ...

Entertainment »

Katrina Kaif disagrees with the term ‘item song’


Katrina Kaif has come a long way in the 16 years she has been a Hindi film actor - from being known mainly for her dancing ability, to her acting talent being proved by films such as New York, Rajneeti and Zero. On how this journey has been so far, ...

 
Items that you save may be read at any time on your computer, iPad, iPhone or Android devices.
 
Are you new to our website? Do you have already an account at our website?
Create An Account Log in here
Email this news to a friend or like someone
Email:
Write a comment to this news