Social problems from Asian crisis to persist

Social problems from Asian crisis to persist

MANILA (Reuters): Economies in Asia may appear to be bottoming
out from the regional financial crisis but accompanying social
crisis is expected to linger in the coming years, the Asian
Development Bank said.

"The social crisis in Asia is still unfolding," ADB chief
economist Jungsoo Lee said in a news conference on Friday.

The ADB concluded a two-day conference on a regional study
assessing the social impact on countries hardest hit by the
financial crisis. These countries were the Philippines, Malaysia,
Indonesia, Thailand, South Korea and Laos.

The social problems uncovered by the country reports included
rising unemployment, increasing incidence of child abuse and
other crimes and the slowdown in the delivery of basic social
services, especially in public health institutions.

A particular concern for most of the countries was the drop in
enrollment levels in secondary and tertiary schools as young
people were forced out of school by financial difficulties. Some
had to start working to help support their families.

The report also pointed to a lack of support mechanisms, or
"social safety nets" like employment insurance programs in most
countries.

Public services were unable to reach the beneficiaries because
of inefficient targeting by governments, the study added.

The study also proposes that governments across the region
should strengthen their regulatory powers in the financial sector
and step up the fight against corruption.

In his opening speech on Thursday, ADB President Tadao Chino
said the bank was willing to extend financial aid to remedy
problems in the social reform programs of the crisis-hit
countries.

"The crisis has potentially longer-term social consequences,"
Chino said in his speech. "...In our preoccupation with the
financial and economic crises we cannot be oblivious of the
impact they exert on people's lives and livelihoods."

Lee said 40 percent of the ADB's yearly loans were allocated
for social programs.

"We have a general principle of allocating a certain
percentage to the social and environment sector but that is not
the ceiling," Lee said. "The ADB is willing to support social
reform and provide program loans."