The middle class in Emerging Asia
Champions for more inclusive societies?
As Asian societies continue to undergo rapid economic transformation, income distribution
and social stratification are set to change radically. A primary characteristic of
this evolution is the emergence of wealthier Asian middle-income classes. While middle-income
classes are a heterogeneous group, they often come with new policy expectations, and
the extent to which they will call for policy changes that are beneficial to more
fragile segments of society remains unclear. This paper investigates the characteristics
of different income classes in Asia in order to explore the extent to which the emergence
of wealthier Asian middle-income classes could become a driver for more inclusive
societies. From this perspective, we assess whether middle-income classes share common
characteristics with the poor and the near-poor in six Asian countries, i.e. Cambodia,
China, Indonesia, Thailand, Pakistan and Viet Nam. The paper finds that, in some aspects,
middle-income classes share a number of similar characteristics with lower income
classes. We discuss how this resemblance could result in support for policies that
could benefit larger segments of society. We also underline the necessity to better
integrate the needs of the poor and the near-poor in policy discussions, especially
in areas where the interests of lower and upper income classes do not necessarily
converge.
Published on December 20, 2021
In series:OECD Development Centre Working Papersview more titles