A recent study by ADB (2012a) highlighted three fundamental drivers of rising
inequality in Asia: technological change, globalization, and market-oriented
reform. It is noted that these forces have opened enormous new opportunities
for Asian economies to prosper, but have not benefited all Asian people equally.
More specifically, these forces have affected income distributions through three
channels: rising skill premiums, falling labor’s share of total income, and increasing
spatial inequality. Moreover, their impacts have been further compounded
by unequal access to opportunity due to weaknesses in governance and social
exclusion (ADB 2012a).