Prosperity and Economic Development in Low Income Asian Countries

Prosperity and Economic Development in Low Income Asian Countries Synopsis

In the re-emerging debate on de- growth, zero-growth, and sustainable growth, the focus has been placed on diminishing returns. That is, an increase in income does not guarantee an improvement in welfare. However, the other end of the diagram has rarely been explored. How is it that some countries are able to perform well in certain development indicators despite their low income?

This new volume explores the issues surrounding this question, and attempts to find an answer to it, through an empirical study of seven low income Asian countries; the Philippines, Indonesia, Vietnam, Bhutan, Mongolia, Kyrgyzstan and Tajikistan. The combination of interview result and data analysis emphasises the value of social capital and human capital in achieving a positive outcome. Preserving assets like family bonds, community ties, traditional skills and certain traditional values not only substitutes financial spending, but also generates or reinforces spiritual values. The findings demonstrate costs and benefits as well as conditions regarding how social capital and human capital replace physical capital in production enhancement and in welfare improvement.