Low-Income Countries in
Asia and the Role of the IMF
Wanda Tseng
Deputy Director
IMF Asia and Pacific Department
September 14, 2006
Outline
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Recent performance of low-income
PRGF countries in Asia
Key policy challenges
Role of the Fund
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Low Income Countries in Asia
Low income countries in Asia at a Glance 1/
Poverty $1 a
day (percent
Per capita GDP Population
of Life expectancy
(in U.S. dollar) (in millions) population) at birth (years)
Low income Asia 3/
East Asia
South Asia
Pacific Islands
ASEAN 4 and NIEs
Sub-Saharan Africa 4/
Adult
literacy, age
Under five
15-24
mortality (percent of
(per 1,000) population)
UN Human
Development
Index 2/
532
480
567
833
366
162
196
7
29.1
31.6
28.8
...
65.7
66.3
65.5
57.8
60.7
55.7
64.4
81.3
90.7
92.7
87.7
65.3
0.61
0.66
0.57
0.56
9,436
477
6.9
72.8
21.7
97.7
0.80
768
683
45.8
47.2
159.3
62.8
0.46
Source: IMF, World Economic Outlook; World Bank, World Development Indicator.
1/ Regional averages are weighted by GDP valued at purchasing power parties. In case data for all sample economies are not available, averages
are calculated using available sample economies.
2/ A composite index measuring achievements in three aspects of human development, longevity, knowledge, and a decent standard of living.
The index ranges 0-100, with the higher value indicating better achievements.
3/ East Asia includes Cambodia, Lao PDR, Mongolia, Myanmar, Timor-Leste, and Vietnam; South Asia includes Bangladesh, Bhutan,
Maldives, Nepal, and Sri Lanka; and Pacific Islands include Kiribati, Papua New Guinea, Samoa, Solomon Islands, Tonga, and Vanuatu.
4/ Excludes South Africa.
3
Growth performance has been generally
encouraging.....
Per Capita Real GDP Growth
(2000-05 average; percent)
5
4
3
2
1
0
T otal low income
Asia
Of which: East Asia
Of which: South Asia Developing countries
excluding China and
India
Source: IM F World Economic Outlook; and World Bank Global M onitoring Report
2006.
4
And the region as a whole have already met
the MDG poverty goal.
Poverty Headcount By Region 1/
Source: World Bank, Global Monitoring Report 2006.
1/ MDG goal on extreme poverty eradication: halve between 1990 and 2015,
the proportion of people whose income is less than $1 a day. East Asia
and Pacific includes China, and South Asia includes India.
5
There are also encouraging signs of progress on
human development indicators.
Under five mortality rate (per 1,000 births)
1990
1995
2000
2004
44
145
133
87
131
30
102
100
65
101
23
80
80
52
83
Annual Percent Change
1990-2004
Selected Asian Countries:
Vietnam
Timor Leste
Bhutan
Mongolia
Lao PDR
53
172
166
108
163
-5.8
-5.3
-5.1
-5.1
-4.7
Source: World Development Indicators
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Some Caveats, however, ............
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Gains in poverty reduction have not been
always even
Global environment could become less benign
Suspension of the Doha Round trade talks is a
set back
Avian Flu pandemic
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... and a large development gap remains.
Development gap
Low income Asia
ASEAN4 and NIEs
100
90
80
70
60
50
40
30
20
10
0
Per capita
GDP 1/
Poverty $1 a
Under five Adult literacy UN Human
day (percent mortality (per (percent of Development
of population)
1,000)
population)
Index
Sources: IMF World Economic Outlook; World Bank, World Development
Indicators; and UN Human Development Index.
1/ Ratio to ASEAN4 and NIES (=100).
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Key Policy Challenges

Maintaining sound
macroeconomic
policies

Developing human
capital
Further growth
and poverty
reduction
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Building strong
institutions
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Case study I: Vietnam
What was the issue?
 Support for the Doi-Moi reform program
How did we help?
 Intensive support under IMF financial programs (19942004).
 Technical Assistance
 General policy advice
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Case study II: Cambodia
What was the issue?
 Strengthening public finances
How did we help?
 Technical Cooperation Action Program, designed
jointly with the authorities and donors.
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Case study III: Bangladesh
What was the issue?
 Expiration of quotas under WTO’s Multifiber
Agreement
How did we help?
 IMF lent Bangladesh $78 million under the Trade
Integration Mechanism in April 2004.
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Thank you
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