The Private Sector’s Role in Poverty Reduction in Asia CHANDOS ASIAN STUDIES SERIES CONTEMPORARY ISSUESANDTRENDS SeriesEditor:ProfessorChrisRowley, CentreforResearchonAsianManagement,CassBusinessSchool, CityUniversity,UK;HEADFoundation,Singapore (email:[email protected]) ChandosPublishingispleasedtopublishthismajorSeriesofbooksentitledAsian Studies: Contemporary Issues and Trends. The Series Editor is Professor Chris Rowley, Director, Centre for Research on Asian Management, City University, UKandDirector,ResearchandPublications,HEADFoundation,Singapore. Asiahasclearlyundergonesomemajortransformationsinrecentyearsandbooks intheSeriesexaminethistransformationfromanumberofperspectives:economic, management,social,politicalandcultural.Weseekauthorsfromabroadrangeof areas and disciplinary interests covering, for example, business/management, political science, social science, history, sociology, gender studies, ethnography, economicsandinternationalrelations,etc. Importantly, the Series examines both current developments and possible future trends. The Series is aimed at an international market of academics and professionals working in the area. The books have been specially commissioned fromleadingauthors.Theobjectiveistoprovidethereaderwithanauthoritative viewofcurrentthinking. Newauthors:wewouldbedelightedtohearfromyouifyouhaveanideafora book. We are interested in both shorter, practically orientated publications (45,000þ words) and longer, theoretical monographs (75,000–100,000 words). Ourbookscanbesingle,jointormulti-authorvolumes.Ifyouhaveanideafora book,pleasecontactthepublishersorProfessorChrisRowley,theSeriesEditor. DrGlynJones ProfessorChrisRowley ChandosPublishing CassBusinessSchool,CityUniversity Email:[email protected] Email:[email protected] www.chandospublishing.com www.cass.city.ac.uk/faculty/c.rowley ChandosPublishing:ChandosPublishingisanimprintofWoodheadPublishing Limited.TheaimofChandosPublishingistopublishbooksofthehighestpossible standard:booksthatarebothintellectuallystimulatingandinnovative. 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ProfessorChrisRowley:DrRowley,BA,MA(Warwick),DPhil(NuffieldCollege, Oxford)isSubjectGroupleaderandtheinauguralProfessorofHumanResource ManagementatCassBusinessSchool,CityUniversity,London,UK,andDirector of Research and Publications for the HEAD Foundation, Singapore. He is the founding Director of the multi-disciplinary and internationally networked Centre for Research on Asian Management (http://www.cass.city.ac.uk/cram/ index.html) and Editor of the leading journal Asia Pacific Business Review (www.tandf.co.uk/journals/titles/13602381.asp). He is well known and highly regarded in the area, with visiting appointments at leading Asian universities and top journal Editorial Boards in the UK, Asia and the US. He has given a range of talks and lectures to universities, companies and organisations internationally with research and consultancy experience with unions, business andgovernment,andhispreviousemploymentincludesvariedworkinboththe public and private sectors. Professor Rowley researches in a range of areas, including international and comparative human resource management and Asia Pacific management and business. He has been awarded grants from the British Academy, an ESRC AIM International Study Fellowship and gained a 5-year RCUKFellowshipinAsianBusinessandManagement.Heactsasareviewerfor manyfundingbodies,aswellasfornumerousjournalsandpublishers.Professor Rowleypublishesextensively,includinginleadingUSandUKjournals,withover 370articles,books,chaptersandothercontributions. Bulkorders:someorganisationsbuyanumberofcopiesofourbooks.Ifyouare interested in doing this, we would bepleased to discuss a discount. Please email [email protected]þ44(0)1223499140. The Private Sector’s Role in Poverty Reduction in Asia S A H COTT . IPSHER OxfordCambridgeNewDelhi ChandosPublishing HexagonHouse Avenue4 StationLane Witney OxfordOX284BN UK Tel:þ44(0)1993848726 Email:[email protected] www.chandospublishing.com www.chandospublishingonline.com ChandosPublishingisanimprintofWoodheadPublishingLimited WoodheadPublishingLimited 80HighStreet SawstonCambridgeCB223HJ UK Tel:þ44(0)1223499140 Fax:þ44(0)1223832819 www.woodheadpublishing.com Firstpublishedin2013 ISBN:978-0-85709-448-3(print) ISBN:978-0-85709-449-0(online) #S.Hipsher,2013 BritishLibraryCataloguing-in-PublicationData. AcataloguerecordforthisbookisavailablefromtheBritishLibrary. 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ProjectmanagementbyNeilShuttlewoodAssociates,GtYarmouth,Norfolk,UK PrintedintheUKandUSA List of figures 1.1 Percentageof population livingon less than $1.25 a day (latestyear reported) 14 1.2 A day atwork in Aranyaprathet, Thailand 19 2.1 Higher education ina refugee camp along theThai/ Burmese border 42 3.1 Family businessin Siem Reap, Cambodia 62 4.1 Transportation system, Aranyaprathet, Thailand 80 6.1 China’s GNI percapita (Atlas Method) 111 6.2 Xinzheng, Henan, China 114 7.1 Vietnam’s GNI per capita (Atlas Method) 131 7.2 Water distribution shop in Ho Chi Minh City 134 8.1 Thailand’s GNI percapita (Atlas Method) 149 8.2 Street restaurants, Bangkok 152 9.1 Real GDP per capita in Cambodia 165 9.2 Poipet, Cambodia 171 10.1 Real GDP per capita in Laos 184 10.2 Shop selling religious items inVientiane 188 12.1 India’s GNI per capita (Atlas Method) 218 12.2 Bangladesh’sGNI percapita (Atlas Method) 220 12.3 Real GDP per capita in Nepal 221 13.1 Real GDP per capita in Afghanistan 237 13.2 Mongolia’s GNI per capita (Atlas Method) 240 14.1 Real GDP per capita in Myanmar/Burma 255 14.2 Ethnicminority (Karen) refugees from Myanmar/Burma livingin Thailand 258 15.1 Children beggingat the Thailand–Cambodiaborder crossing 280 15.2 Womanfinding away to make alivingin Siem Reap, Cambodia 281 xi List of abbreviations ASEAN Association of South East Asian Nations BJP Bharatiya Janata Party BOP Bottom Of the Pyramid CP Charoen Pokphand FDI Foreign Direct Investment FUNCINPEC Front Uni National pour un Cambodge Inde´pendant, Neutre, Pacifique, Et Coope´ratif GATT General Agreement on Tariffs and Trade HCMC Ho Chi Minh City HR Human Resources HRM Human Resource Management HRP Human Rights Party HUL Hindustan Unilever IMF International Monetary Fund KMT Kuomintang LDCs Less and least Developed Countries LTTE Tamil Tigers MNC MultiNational Corporation MOUs Memorandums Of Understanding NIEs Newly Industrialized Countries OEM Original Equipment Manufacturer PAD People’s Alliance for Democracy PPP People’s Power Party PRC People’s Republic of China RD Research and Development RLG Royal Lao Government SLORC State Law and Order Restoration Council SMEs Small and Medium-sized Enterprises SPDC State Peace and Development Council SRP Sam Rainsy Party UNTAC United Nations Transitional Authority in Cambodia USAID United States Agency for International Development xiii The Private Sector’s Role inPoverty Reductionin Asia USULS US University Language School VNQDD Vieˆt Nam Quoˆ´c Daˆn –Da’ng (Vietnamese Nationalist _ Party) VOC Dutch East India Company (Vereenigde Oostindische Compagnie) WTO World Trade Organization xiv Acknowledgements Abookprojectisamajorundertakingandrequiresconsiderableassistance to complete. Due to limited linguistic skills and limited travel funds, assistance was required in gathering much of the data for the project. It is impossible to acknowledge everyone who has assisted in this project, and also some individuals interviewed have preferred to remain anonymous. However, I would like to give special acknowledgements to the following individuals for providing information and assistance in completing this work: Ms. Achhara Som, Prof. Ana Liza Ragos, Ms. Amy Hipsher, Mr. Bounleung Veunvilaong, Dr. Candace Mehaffey- Kultgen, Ms. Dang Thai Phuoc, Ms. Huynh Thi Thu Phuong, Mr. Jeffery Hipsher, Mr. Lu Yitian, Ms. Meena Nuega, Mr. Orgil Balgansuren, Ms. Quynh Huong, Ms. Rosemarie Quilacio, Mr. Scott Johnson, Ms. Souvita Phaseut, Ms. Tran Nhi, Ms. Wilawan Chanajaranwit, Ms. Zheng Luand Ms Zhu Haibo. Withouttheassistanceoftheindividualslistedabove,andmanyothers, the completion of this work would not have been possible. For the help given, Iheartilygive mymost sincereappreciation and thanks. xv Notes Thereareavarietyoftechniquestocompilestatisticsoneconomicgrowth and levels of poverty in less and least developed countries. The difficulty in compiling these statistics is compounded by the large number of individuals in these countries engaging in the informal economy and/or subsistence agriculture. Furthermore, much of the data used to compile thesestatisticsoftencomefromgovernmentswhichmayormaynothave motivationstoreportaccurately.Therefore,differentagenciesoftenreport slightlydifferentnumbersandasaconsequenceonewillencountersome inconsistenciesinthestatisticsreportedinthisbook.Oneshouldconsider numbers and statistics reported on poverty reduction and economic growth to beonlyapproximates. While having lived in Asia for nearly 20 years and having working knowledge of a few Asian languages, the author is not a linguist and madethedecisiontorelyonlyonEnglishlanguagesourcesasreferences. Spellingsusedfornamesandplacesaregenerallythespellingsusedbythe authorsoftheoriginalsources,withafewchangesforconsistency’ssake. In cases of individual names the English spellings have usually been supplied by the individuals who were interviewed and only in a few rare cases hastheauthorused his own translation of an individual’s name. xvii