Nations Warned Against Western Growth Model

Asia's developing countries should avoid western models over the next three decades if they want to sustain economic growth, the Asia Development Bank said yesterday.

A turn toward protectionist policies around the world and a reduction in the growth of world trade could derail Asia's rapid growth,'' the bank said in a special report marking its 30th anniversary.

As well as such general concerns, the report said, China and India will have an enormous influence'' on Asia over the next 30 years.

These countries are so large that their progress will have profound effects on both the rest if the region and on the global economy,'' the ADB said.

 

The report noted that while each had initiated fundamental reforms, China's were much more advanced'' than India's reforms.

Many observers have raised questions about the sustainability of these reforms and about their potential impact on asia's future.'' it said.

Elaborating on the need to avoid western models, the report said if Asia were to follow the path of much of Europe and of the US toward higher government spending and increased spcial welfare programmes, growth would slow.''

Such a pessimistic scenario for the future would include reduced economic openness and decreased government saving.