This is illustrated by a sub-setof countries, such as the fourteen Least Developed Countries (LDCs) that lagfar behind the Asian ‘miracle’ economies. Within countries, the unequal natureof growth reveals itself in widening regional inequality. In addition,inequality is on the rise across social and ethnic groups, especially amongstthe more vulnerable populations subject to conflict and other harshenvironments. The regional disparities within some fast growing countries arecomparable to the inequalities between advanced industrialized economies andthe least developed countries.

The focus needs to be firmly onthe countries and the large pockets of populations that have not beenrecipients of sustained and high growth. The policy agenda needs reassessmentand restructuring to address the problem of growing inequality. Acrosscountries, more inclusive forms of globalization need to be developed, whilewithin countries the policy dialogue should clear the way for more inclusiveforms of growth.

Rationale and Scope of Policy Dialogues

First andforemost, we are encouraged and inspired that that these dialogues are beingheld in honour of Professor Frances Stewart. Her lifelong commitment to humandevelopment and her path-breaking work on inequality will help to guide andframe the discussion.

Inkeeping with UNDPs upstream emphasis,the Regional Centre in Colombocommissioned four country policy papers on inequality and an advocacy film on Inequalityand Hunger. In addition, the Regional Centre has undertaken an in-houseregional policy paper on Inclusive Growth and Inequality. Thepolicy forums being held in Negombo,Sri Lanka willfocus on the main findings of these papers. An overarching objective is todemonstrate how policy recommendations can be made useful for policy makers.

Given thecountry specificity of the papers, the causes of inequality differ, but commonthemes do emerge. For example, a number of countries in the region havesuffered due to the recent food and fuel price hike and the poor have suffereddisproportionately from the rising inflation. More recently, the financialcrisis is likely to slow down economic activity, constraining, among otherthings, governments' ability to spend on development. Also, a number ofcountries in the region find themselves in conflict or post-conflict situations,posing additional challenges to addressing the problems of vulnerablepopulations.

Thepolicy dialogues will touch upon a number of these emerging issues and theirimpact on inequality. In addition to strong government attendance andparticipation, the policy dialogues will attract participants from civilsociety, think-tanks, academia, and other multilateral institutions.

Project Objectives

Thepolicy forums are a key activity of the Inclusive Growth and Reduction inInequalities Project, funded by the Bureau of Development Policy, UNDP,under the aegis of the Poverty Trust Fund. Building the understanding ofpossible policy interventions to reduce inequality can have multiple benefits.Some of the primary project objectives are:

·       increase awareness of Asian governments on howto reduce inequality through fiscal measures;

·       where applicable, provide governments, civilsociety and academia with a common understanding of the political economy ofreforms, particularly the opportunities arising from new elites, to acceleratefunding for MDG-related expenditure;

·       increase awareness among line ministries of howtransfer mechanisms can be better organized;

·       provide UN agencies with a collective voice toengage with governments on pragmatic policies supporting the inclusive growthagenda.

Expected Outcomes

The expected outcomes from thepolicy dialogues are manifold. The primary aim, however, is to ensure thatgovernment participants have a clear idea of the hurdle posed by risinginequality in ensuring development and the achievement of the MDGs.

Second, we hope that the main findings andpolicy recommendations devolving from the policy dialogue gain momentum and aretaken up at the highest levels in the respective countries. We will also beshowcasing the work emerging out of this workshop on an online Community ofPractice to share with over 400 development practitioners, experts, government representativesand other stakeholders in the hope that ideas emerging from the workshop willcatch on and be applied. All participants will be enrolled automatically andare encouraged to engage in discussion by posting their comments prior to theconference. The web-link will be given to you as it is made available. Followingthe conference, we expect to work closely with the UNDP Country Office MDGfocal points and the respective governments to incorporate key lessons learntinto development planning and policymaking processes. We intend topromote strong national engagement and increased inter-agency involvement so asto tackle important regional issues in a more coherent and coordinated manner.  

Finally, the policy papers presentedand discussed at the policy dialogues will be published along with a regionalpaper on inclusive growth and inequality. A CD on hunger and inequality hasbeen already produced as a powerful advocacy tool. We hope to launch otherknowledge products in line with follow-up activities during the course of 2009.