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Yahoo! My Yahoo! Mail More Yahoo! Services Account Options New User? Sign Up Sign In Help Yahoo! Search web search Home Singapore Asia Pacific World Business Entertainment Sports Technology Singapore Asia Pacific World Asia needs to change export-led growth model: UNDP AFP AFP - Monday, November 30 Send IM Story Print Asia needs to change export-led growth model: UNDP Slideshow: Full Photo Coverage: Business & Economy SINGAPORE (AFP) - – Asia needs to craft out a new growth plan because the export-led model that has served the region well is no longer feasible, the United Nations Development Programme (UNDP) said Monday. "Going back to the growth model of the last two decades is tempting as it brought Asia the dynamic momentum for rapid growth and signs of prosperity," the UNDP said in a report on the impact of the global crisis on the region. "But this is neither feasible nor desirable, and so the crisis is also an opportunity for many countries in Asia to re-orient their growth and development strategy," it said. The export-led model pursued by many Asian economies, while it has created stellar growth rates, has also resulted in rising urban-rural inequality, the UNDP said. "Asia's record growth performance has come at a price," it said. The UNDP said Asia must recognise that the imbalances created by the export-led model will only worsen further if policymakers fail to address the issues effectively. "On current trends, Asia's growth imbalances -- with growth driven by investment in industry and services in urban areas, environmental strains, and income inequality -- are likely to become worse." In the report, the UNDP called on Asia's policymakers to look to building up domestic demand and boosting intra-regional trade rather than continue to rely on the Western economies which have been squeezed badly by the global crisis. "Given the sharp actual decline and projected stagnation in export demand, it is critical that domestic demand rises rapidly in these countries," the UNDP said. To a certain degree, this is already taking place within the region, it said. "There have already been significant moves towards this, especially through extension and deepening of bilateral and regional free trade agreements... The potential for expansion in such areas is now greater than ever before." The UNDP said Asia is already showing signs of recovery but cautioned there were risks of asset bubbles in some economies and unwinding the vast fiscal spending measures would be a key challenge for governments in 2010. "To a certain extent, the recovery in some countries in the region has been associated with quick and proactive counter-cyclical monetary and fiscal policies that were designed to avoid the kind of sharp collapses in output and employment that were experienced during the Asian financial crisis," it said. "However, unwinding these policies will be tricky and will remain a major issue in early 2010 as asset bubbles may have formed in some markets which have exceeded fundamentals." Recommend Send IM Story Print Related Articles Nikkei climbs 2.6 pct on yen as Dubai jitters ease Reuters - 2 hours 35 minutes ago JAPAN-ECONOMY/BOJ-SHIRAKAWA-FX (URGENT) Reuters - 2 hours 35 minutes ago BOJ's Shirakawa: forex moves unstable Reuters - 2 hours 36 minutes ago Indian bond yields edge up ahead of GDP data Reuters - 2 hours 43 minutes ago Saudi crown prince ends treatment, back soon -son Reuters - 2 hours 44 minutes ago News Search Top Stories Dubai and Abu Dhabi markets set to fall on debt woes UAE acts to shore up banking system and calm markets Tiny magnetic discs could kill cancer cells: study WTO meeting expected to see free trade pledge Police, protesters clash ahead of WTO conference More Top Stories » Related Full Coverage China Economychina economy All Full Coverage » ADVERTISEMENT Most Popular Most Viewed Most Recommended Dubai blackout over debt plans to hit Gulf markets Wall Street braces for Dubai debt fallout, jobs data Gatecrashers met Obama, Secret Service 'embarrassed' Investors dump stocks over Dubai scare Police, protesters clash ahead of WTO conference More Most Viewed » Alcohol helps cut heart disease risk for men: study Mankind using Earth's resources at alarming rate More Most Recommended » Elsewhere on Yahoo! Financial news on Yahoo! Finance Stars and latest movies Best travel destinations More on Yahoo! News Home Singapore Asia Pacific World Business Entertainment Sports Technology Subscribe to our news feeds Top StoriesMy Yahoo!RSS » More news feeds | What are news feeds? Also on Yahoo Answers Groups Mail Messenger Mobile Travel Finance Movies Sports Games » All Yahoo! Services Site Highlights Singapore Full Coverage Most Popular Asia Entertainment Photos Copyright © 2009 Yahoo! Southeast Asia Pte. Ltd. (Co. Reg. No. 199700735D). All Rights Reserved. Terms of Service | Privacy Policy | Community | Intellectual Property Rights Policy | Help

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