Rich/Poor wealth gap in Asia is alarming

The Asian Development Bank (ADB), the multilateral development financial institution aimed at helping its developing member countries reduce poverty and improve the quality of life of their citizens has sounded a grim warning.

The wealth gap that separates the richest and poorest citizens in society has increased across Asia, according to a ADB study released this week. Asia and the Pacific remains home to two thirds of the world's poor.

The figures measured the difference in income between the top and bottom earning sectors several years ago, and then compared the results with recent findings to track the progress of Asian economies in minimising the rich/poor divide.

The study found that in spite of astronomical growth in the emerging Asian markets, many of the poorest citizens were being left behind whilst the rich elite grew more powerful.

China was highlighted as having the second worst wealth gap issue in the region, behind only Nepal, where inequality was said to have widened more considerably than Asia and indeed the rest of the world.

The Asian Development Bank put the rising inequality down to problems with investment in rural and agricultural areas, leading to increasingly affluent sub-urban environments.

According to ADB President Haruhiko Kuroda, "ours is increasingly a region of two faces. One is the shining Asia of vitality and wealth, and the other is its shadows, where desperate poverty persists."

Kuroda called on governments of Asian countries to facilitate the construction of an environment that nurtures the private sector in order to create jobs for the hundreds of millions of unemployed and underemployed Asian people.

"Prosperity with inclusiveness means reaching out to the 620 million Asians who still live on less than 1 U.S. dollar a day," he said.

He emphasized that the goal requires sustained and broad- based growth growth that generates jobs and raises incomes by absorbing the surplus labor of poor.

In the past there was insufficient wealth creation. Now the problem is that there is too much wealth helping only the rich elites soar into unparalleled heights while the poor remain stuck to the bottom.

ADB boss has sounded a stark warning. Maldives too, need to move fast. The people's special majlis has to put into place a social security system that can take care of health care for all, an adequate pensions scheme and most importantly, a more equitable distribution of wealth.

How can such equitable distribution of wealth be achieved?

This is an argument that goes back to ancient times. The out-and-out capitalists argue that in society every one entitled to the fruits of his labour and that the state should not take it away.

Those against would say that too much wealth with a small group of people is undemocratic and can lead to social unrest. They say the rich should contribute to help the poor.

Whatever is the right formula for distribution of wealth through taxation and other means, every citizen of the nation deserves to live in dignity and the state has the duty to make the conditions right to make it possible.