Table of Contents

  • Developing Asia is currently leading the world’s economic rebound from the global economic and financial crisis. The region has been hailed as the quickest to emerge, with the recovery marking a clear V-shape while in other parts of the world the final shape still remains uncertain. This strong recovery is largely due to China’s rapid return to high growth rates, from its lowest point at 6.2% in the first quarter of 2009 to more than 11% in the first half of 2010. China’s huge stimulus package and its growing demand for imports provided a significant boost to regional exporters from neighbouring economies. Economic growth also regained strong momentum in the other large emerging economies of the region. If economic recovery is well on its way, lagging employment growth and widespread underemployment and poverty put strains on labour markets and pose significant social challenges. The least developed economies of the region remain particularly vulnerable to a volatile international economic environment.

  • This is a joint publication by the Organisation for Economic Co-Operation and Development (OECD) and the International Labour Office (ILO). The authors of the report are: Cristina Martinez-Fernandez; Kees Van Der Ree; Sylvain Giguère and Aurelio Parisotto. The report has been prepared within the framework of the ESSSA initiative, managed by Cristina Martinez-Fernandez, Policy Analyst, OECD/LEED, under the supervision of Sylvain Giguère, Head of the OECD LEED Division. The preparation of the report was jointly directed by Dr. Martinez-Fernandez and Mr. Kees Van Der Ree (Program Manager, ILO).

  • In developing Asia, which is generally recognised to be leading the global recovery from the financial crisis, decentralisation has increasingly transformed the role of local government from implementers of national strategies to equal partners with national government in the design and implementation of social and economic initiatives. Nonetheless, given the initial signs of financial overheating in the larger countries of China, India and Indonesia, and the uneven recovery in the smaller, less developed countries, local governments across the continent are facing growing pressure by their constituents to take direct action in addressing the effects of the crisis on their local economies. Local agents (e.g. government, civil society, private sector) who have a “ground eye view” are better able to assess the economic opportunities and challenges of their community; are more cognisant of the community’s priorities; and are better positioned to mobilise local resources to ensure the initiative sustains its impact over the long term. Local governments, civil society organisations (CSO) and the private sector play a critical role in national and local dialogue as they are able to provide real-time feedback for existing initiatives, and information on new opportunities and challenges that might have arisen after the initiative was set up.