narrowing-the-development-divide-in-asean-the-role-of-policy

This paper examines the extent to which economic convergence within ASEAN is occurring, the factors that are driving it and the role of policy. Theory is provided to examine the conditions under which convergence can be expected to occur. Section 3 examines policies and experiences relating to ASEAN trade, investment, and labor flows. The extent to which this growth has contributed to convergence, or the narrowing of per capita incomes, is examined in Section 4. Since the development divide is multi-faceted, the authors also examine outcomes in relation to a host of other social indicators in comparative perspectives. In Section 5, they identify gaps in the reform agenda, and discuss how future growth can be made more inclusive and therefore less threatening to social harmony.