Rising Inequality and Crony Capitalism in Southeast Asia
A recent Oxfam report highlights the threats of rising inequality and crony capitalism to Southeast Asia's growth.
Weak taxation policies and governance gaps are reinforcing wealth imbalances and diverting resources from public spending, according to the report.
Key Findings
- 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
- 31.4% in China
The report, titled "An Unequal Future: Asia's Struggle for Justice in a Warming, Wired World", was released on Wednesday.
The study found a significant wealth gap in Asia, with the richest individuals holding a large percentage of national wealth.
Author's summary: Inequality and crony capitalism threaten Southeast Asia's growth.