Introduction

Developing Asia's stellar growth rates have masked rising inequality, leading to “two faces of Asia”—one “shining” and the other “suffering”. Competing internationally and benefiting from the forces of globalization, technological change, and economies of scale, the shining Asia has grabbed the attention of the media and the world. In the suffering Asia—not as well publicized—unacceptably high numbers of people are vulnerable and live in poverty. These two faces present both a beacon of hope and a symbol of despair. Merging them will be a development challenge for many years to come.

Inclusive growth, with its focus on creating economic opportunity and ensuring equal access, will play a pivotal role. More and more countries in developing Asia are adopting inclusive growth as the goal of development policy. India recently switched to a development strategy focusing on two objectives: raising economic growth and making growth more inclusive (Planning Commission of India 2006). In the People's Republic of China (PRC), the government made the creation of a “harmonious society”, a concept very closely related to inclusive growth, the top priority in its 11th Five Year Plan (State Council of China 2006). In Thailand, growth with equity is one of the elements of its “sufficiency philosophy”, underpinning the government's development efforts (UNDP 2007). A similar theme can be found in Viet Nam's socioeconomic development strategy, which advocates “quick and sustainable development, economic growth in parallel with implementation of initiatives, social equity, and environment protection” (Central Committee of the Communist Party of Viet Nam 2001).