MANILA, Philippines — Economies in Asia-Pacific should implement policies toward long-term sustainability and address widening inequality as the region moves toward a post-pandemic world, the Asian Development Bank’s think tank said.
According to the Tokyo-based Asian Development Bank Institute (ADBI), economic policy agenda should focus on longer-term sustainability and resilience, supported by fiscal reform.
It says the deployment of COVID-19 vaccines will bolster progress toward a post-pandemic era.
ADBI research fellow John Beirne emphasized that the interconnection across Asian economies, particularly regarding supply chains and regional trade, has exposed economic vulnerabilities.
Last year, supply chains across various commodities were disrupted following lockdown measures implemented by economies to avert rising COVID-19 cases.
“Further advances in technological development and automation, which surged due to COVID-19, will be important factors driving productivity and competitiveness in the long term,” Beirne said.
“Related economic policy should be aimed at harnessing the gains from digitalization through appropriate investment in digital infrastructure, connectivity and digital education, as well as labor market reform and Focus training,” he said.
Beirne noted that a coordinated approach needs to be adopted across countries for sustainable recovery amid the region’s interconnection.
He said the coordination is crucial to support the economic recovery on issues related to public debt restructuring, including relief for vulnerable and poor countries, and repairing supply chains.
“Greater efforts on multilateral coordination are needed to develop preventive approaches for other infectious diseases and viruses, such as those related to surveillance and early warning systems,” Beirne said.
Further, the ADBI research fellow said Asia-Pacific countries should come up with targeted responses to various issues such as climate risks, poverty and inequality.
Poverty in the region, particularly in developing countries, has worsened due to the pandemic.
Beirne said Asia needs to step up significantly in order to realize the commitments under the Sustainable Development Goals by 2030.
“A green post-pandemic recovery, including through more efficient use of natural resources and reduced environmental risks, will help to promote economic growth gains that are sustainable, inclusive and balanced,” he said.