UN Report Urges Asia-Pacific Increase Social Spending to Turn Rebound into Recovery

In its latest economic report, the United Nations urges governments in the Asia-Pacific region to increase social spending in order to consolidate the region's economic rebound and bring about a sustained economic recovery.

CRI's Zhang Ru has more:

Reporter:

"The Economic and Social Survey of Asia and the Pacific" is an annual publication of the UN Economic and Social Commission for Asia and the Pacific, also known as ESCAP.

The report provides the governments of the Asia-Pacific region - which represent more than 60 percent of the world's population - a roadmap to a more inclusive and sustainable development path.

The survey finds that the economic outlook for the Asia-Pacific region has improved significantly, with the region's developing economies forecast to grow by 7 percent this year.

But Dr. Aynul Hasan, chief of the development policy section at ESCAP, says despite the economic rebound, there could still be risks.

"One notable question is that this rebound could be fragile and uneven. There could be rising inflationary pressures, there could be asset bubbles and appreciating exchange rates in an environment of weak growth."

Dr. Aynul Hasan says the UN report promotes a number of regional policy recommendations for inclusive and sustainable growth.

"One lesson that has been learned during the crisis is the vulnerability of the poor sector of the society. Therefore the suggestion is that strengthening the social protection of the economy."

The report also recommends continued support for crop and rural development, green technology innovation and more integrated regional cooperation.

Dr. Hasan also notes that China is playing an important role in leading the regional economy to realize sustainable development.

"China is expected to continue lead the growth with investment in infrastructure, helping to remove supply constraints and spur even faster growth beyond 2010."

Huang Yiping, a professor of economics at Beijing University, says China's efforts in developing a green economy are essential to gaining a sustained recovery.

"About 34 percent of the 4-trillion-yuan stimulus package has been allocated to improving the environment. This is very important for us to maintain a sustainable development and upgrade the economic growth mode."

The report has been released in more than 22 cities across the Asia-Pacific region and in New York and Geneva.

For CRI, I'm Zhang Ru.