Rising Inequality Threatens Southeast Asia's Growth
A recent report highlights the issues of rising inequality and crony capitalism in Southeast Asia.
According to the Oxfam report, "An Unequal Future: Asia’s Struggle for Justice in a Warming, Wired World", weak taxation policies and governance gaps exacerbate wealth imbalances and divert resources from public spending.
- The richest 10% of Asians took between 60-77% of national income.
- The poorest half received only 12-15% of national income.
- In 2023, the top 10% captured:
- 58% of income in India
- 52% in Thailand
- 46% in Indonesia
- 43% in both Vietnam and China
The richest 1% hold 40.1% of national wealth in India and 31.4% in China.
Author's summary: Rising inequality threatens Southeast Asia's growth due to weak policies.