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Inequalities Asian Ethnic Groups Experience in the Business Environment 1 INEQUALITIES ASIAN ETHNIC GROUPS EXPERIENCE IN THE BUSINESS ENVIRONMENT By [Name] Course Name and Number Professor Name Institutional Affiliation Location of Institution Paper Due Date

Inequalities Asian Ethnic Groups Experience in the Business Environment 2 Acknowledgements

Inequalities Asian Ethnic Groups Experience in the Business Environment 4 Contents List Contents Acknowledgements ............................................................................................................................... 2 Abstract ................................................................................................................................................. 3 1. Introduction ............................................................................................................................... 6 1.1. Background of the Research .................................................................................................. 6 1.2. Management issue to be Investigated ..................................................................................... 6 1.3. Research Questions ................................................................................................................ 7 1.4. Research Objectives ............................................................................................................... 7 1.5. Anticipated Benefits and Expected outcomes ........................................................................ 8 2. Literature Review .......................................................................................................................... 8 2.1. Introduction ........................................................................................................................... 8 2.2. Themes .................................................................................................................................. 9 2.2.1. Gender Inequality .......................................................................................................... 9 2.2.2. Income Inequality .......................................................................................................... 9 2.2.3. Race and Ethnic Inequality .......................................................................................... 10 2.2.4. Political Factors contributing Inequality ...................................................................... 11 2.3. Summary .............................................................................................................................. 12 3. Methodology ............................................................................................................................... 13 3.1. Research design ................................................................................................................... 13 3.2. Primary Research – Techniques and Sampling .................................................................... 13 3.3. Secondary Research ............................................................................................................. 14 3.4. Justification of the Research Approach ................................................................................ 14 4. Findings ....................................................................................................................................... 15 4.1. Summary of Key Primary Research Results ........................................................................ 15 4.1.1. Gender Inequalities ...................................................................................................... 15 4.1.2. Income Inequalities ...................................................................................................... 16 4.2. Summary of Key Secondary Research Results .................................................................... 18 4.2.1. Gender and Income Inequalities ................................................................................... 18 4.2.2. Race and Ethnic Disparities ......................................................................................... 19 4.2.3. Political Factors ........................................................................................................... 20 5. Discussion ................................................................................................................................... 20 5.1. Analysis & Interpretation of the Findings ............................................................................ 20

Inequalities Asian Ethnic Groups Experience in the Business Environment 5 5.2. Effects of Gender and Income Disparities on Inequality ...................................................... 23 5.3. Roles of Governance on Inequality ...................................................................................... 24 6. Conclusions ................................................................................................................................. 25 6.1. Summary of Findings ........................................................................................................... 25 6.2. Fulfilment of Requirements of the Research Questions and Objectives ............................... 26 6.3. Limitations of the Study ................................................................................................... 27 7. Recommendations ....................................................................................................................... 27 7.1. Recommendations from Study ............................................................................................. 27 7.2. Recommendation for Further Study ..................................................................................... 28 References ........................................................................................................................................... 29

Inequalities Asian Ethnic Groups Experience in the Business Environment 7 1.2. Management issue to be Investigated One of the overarching questions is whether businesses and related practices contribute to economic inequality or reduce it. In some cases, business cultures that stem from societal norms have had profound effects on inequality. For instance, being an Asian woman, understanding the influence of Asian heritage on equalities became essential because such aspects influence decision making. Nonetheless, this research attempted to address the problems of inequalities from different perspectives. For example, gender inequality in business environment present itself in nuanced ways like less opportunities for women. It grounds unequal pay and entertain disparity in proportions and the culture breeds ground for sexual harassment. Hence, it is crucial to understand different inequalities that affect Asians in business environments. 1.3. Research Questions The primary question that guided the study was that do inequalities exist among Asian people and if so, what are the reason for the existence or the root cause? In specific, the study explored the following research questions. a. How do gender differences cause inequalities in Asia b. How do income disparities contribute to inequality in Asia c. How do race and ethnicity cause inequality in Asia d. How do political factors contribute to inequality in Asia

Inequalities Asian Ethnic Groups Experience in the Business Environment 8 1.4. Research Objectives The main objective of this research is to examine the existence of inequalities among Asian people and explanation or justification for their existence. To achieve this broad objective, the research focused on the following specific objectives: a. To investigate how gender differences cause inequalities in Asia b. To examine how income disparities cause inequality in Asia c. To investigate how race and ethnicity cause inequality in Asia d. To examine how political factors cause inequality in Asia 1.5. Anticipated Benefits and Expected outcomes The research is necessary for exploring the causes of inequality among various countries in Asia and developing effective recommendations to curb the levels of inequality, hence promoting economic growth and sustainability. In the world we live in, individuals are entitled to equal rights and opportunities regardless of their race, ethnicity, gender, income levels, and other demographic factors. The study will hence explore a wide range of factors that may cause inequalities in the region, including the distribution of economic resources, ethnic cleavages in the region, and political factors such as the use of fiscal policy to stimulate economic growth. The anticipation of this study relates to the four objectives. For instance, gender is expected to result in income and education inequalities while socio-economic classes are expected to have economic and purchasing power disparities. Further, resource allocation is expected to vary depending on race and ethnicity while political affiliations, political outcomes, and ideation are expected to contribute to inequality in Asia. Notably, the inequalities highlighted in this section are examples, but it anticipated that inequalities could rise in occupation,

Inequalities Asian Ethnic Groups Experience in the Business Environment 10 Gender inequality has been pervasive in the history of the Asian continent and the inequality has affected women’s participation in different societal development aspects. For instance, in North and Central Asia, the share of women providing labour in non-agricultural sector is the highest in the entire region (Bhopal, 2019). However, women’s participation in non- agricultural sector is limited in South Asian countries (Mehrotra, 2009 ). Further, the representation of women in parliaments and political leadership positions also remains low. Hence, it is apparent that Asian patriarchal cultural plays a crucial role in driving gender inequality in the continent. 2.2.2. Income Inequality Several studies have explored trends in income inequalities among Asian countries in recent years. Jain-Chandra and colleagues in their analysis of inequality in Asia stated that income inequality has risen in most of Asia, in contrast to other continents. However, the authors attributed the disparity to inequitable distribution of gains between Asian countries and claim that fast-growing economies have failed to replicate growth with equity strategies (Jain- Chandra et al., 2019). Other researchers have claimed that this high-income inequality contributes to high poverty rates observed across Asian countries ( Park and Mercado, 2018). In most countries, income inequality has been linked to financial inclusion (Demir et al., 2022). However, this is not the case in Asia ( Park and Mercado, 2018). The rising income inequality remains a key challenge for policy makers in most of the Asian developing countries. Even though standard indices such as GINI index indicate that inequality in some parts of Asia – like South Asia – is moderate, there is need to explore how dimensions like high returns on investment contribute to inequality in the region (Rama et al., 2015). Such a holistic approach, alongside using robust measures of inequality, can help policy makers and Asian country governments address the issue. In the meantime, the gap

Inequalities Asian Ethnic Groups Experience in the Business Environment 11 between the wealthy and the bottom 10% remains wide and concerning because of its implication on resource distribution. 2.2.3. Race and Ethnic Inequality The Asian continent comprise of six main ethnic groups namely Chinese, Indians, Korean, Vietnamese, Filipino and Japanese. The continent has its unique strand of racism, and it is a juxtaposition of Western racial constructions (Woo et al., 2020). In 2019, Iceland examined the patterns and trends in racial inequality in poverty and affluence over the 1959 – 2015 period and observed that the disparities narrowed over time. However, despite the narrowing, the author concluded that considerable disparities remain. Other studies have associated the disparities with socio-demographic attributes such as education, family structure, and nativity (Tomlinson, 2002). It is unfortunate that most studies discuss Asian race and ethnic inequalities in the context of Western cultures, particularly the US. Raghuram (2022) noted that Chinese have been targeted for racism in the continent. However, the author asserted that for many parts of Asia, colonial differences have contributed to racism, and it remains a tool for building alliance (Raghuram, 2022). Hence, racial affiliations are being formed based on intersection of interest, especially through combination of skills, class, cultural difference, and nation. Inequalities are therefore nuanced and complex because the major races in Asia can hold their views and form their opinions based a plethora of factors. If anything, the Covid-19 pandemic strengthened the discrimination against Chinese ( Lee and Waters, 2021). 2.2.4. Political Factors contributing Inequality The rising inequalities and widening gaps have been a source of political backlash in Asia and governments have been pressured to enact populist policies to support stances. Lee and

Inequalities Asian Ethnic Groups Experience in the Business Environment 13 by low-income populations tends to introduce a vicious cycle of poverty through reduced access to skill enhancement opportunities by low-income groups, an aspect that aggravates the extent of inequality-related challenges among people in Asia (Rigg, 2015). The significant racial, ethnic, and gender stereotypes in the region is a significant source of inequality (Wagle, 2007). Finally, the difference in the distribution of vital production factors has also been cited to significantly increase income inequalities among Asians. Most of the countries adopt a capitalist approach, where the factors of production are primarily owned by firms and individuals. Various factors of production include land, capital, labour, and entrepreneurship, which are vital for exploiting existing business opportunities in the context of developed countries and hence enhancing economic growth and development. Reduced access to these factors of production by individuals in lower income groups and increased access by higher income groups increase the investment potential of higher income groups, hence affecting income inequality in the long run. 3. Methodology 3.1. Research design The research applies the deductive approach to theory development. This approach entails developing specific conclusions from general phenomena. The research aims at developing specific conclusions through critical observations on the levels of inequality in Asia, the cases of these inequalities, as well as significant trends. From the specific conclusions, the study can come up with specific recommendations on how to overcome the issue of inequality. The study adopts a quantitative research design to investigate the issue of inequality in Asia. Specifically, the research employs the causal-comparative research design, which investigates the existence of a significant causal relationship between the study variables. Gender, income,

Inequalities Asian Ethnic Groups Experience in the Business Environment 14 race and ethnicity, and political factors will act as the independent variables in the study, while inequality rates will act as the dependent variables in the research. These factors will be critically evaluated to determine how their cause or influence the levels of inequality in the region. To analyse the data, descriptive and correlational methods will be employed to determine the causal relationship between the variables. Regression analysis will be used to determine the value or R squared, while measures of central tendency will be used to analyse trends. 3.2. Primary Research – Techniques and Sampling It was presumed that the secondary data used in the study were products of primary data collection. However, it was noted that since the Asian continent comprise of 48 countries, sampling was necessary to obtain an ideal number to focus on and study. In standard applications, 43 countries would be the minimum number of necessary samples required to meet desired statistical constraints for the analysis. Note that a sample size of 43 countries is because the population is known. In this case, the sample was assumed to meet the requirements of Daniel’s mathematical expression (Daniel, 1999). Therefore, a simple random sample of 43 countries was chosen to represent the 48 Asian countries. Notably, the sampling technique is simple and lacks bias (Sharma, 2017). Such primary data were retried from World Bank, International Monetary Fund, and other websites documenting such information. It is imperative to note that the researcher did not collect any primary data but rather used such data to supplement findings from desktop research. 3.3. Secondary Research The secondary research relied on data provided by primary research from different sources. Hence, the process involved assimilating data from different sources like the internet, organizational websites, and institutional reports. In this study, online data, data from

Inequalities Asian Ethnic Groups Experience in the Business Environment 16 4.1. Summary of Key Primary Research Results 4.1.1. Gender Inequalities According to World Bank’s gender portal, South Asia and East Asia have distinct gender inequalities. Table 1 summarizes the gender inequalities between Asian men and women. Table 1: Education completion, adult literacy, and labour force participation inequalities in Asia as of 2020. Indicator Gende r South Asia East Asia & Pacific School Completion Rate Male 79% 91% Female 81% 93% Adult literacy Male 80.9% 97.5% Female 65.2% 94.5% Labour Participation Male 71.8% 74.7% Female 22% 59.1% In South Asia, 81% of school going girls aged between 15 and 19 years complete their lower secondary education compared to 79% of their male counterparts. However, in East Asia, the rates of secondary school completion are higher with 91% of the boys and 93% of the girls completing their lower secondary. The table also shows that more men participate in Asia’s labour force compared to women. Further, regarding type of employment, in all countries in East and South Asian, women spend more time than men doing uncompensated domestic and care chores. 4.1.2. Income Inequalities

Inequalities Asian Ethnic Groups Experience in the Business Environment 17 The pre-tax income expressed as a percentage of total income share for each region is summarized in the following chart. Figure 1: Time series of pre-tax income in different Asian sub-economies between 2000 and 2021 According to Figure 1, the other countries in East regions have the lowest pre-tax income. South Asia’s pre-tax income registered tremendous growth between 2000 and 2010 and continued beyond 2010. Notable, West Asia has an average pre-income tax of 53.2% followed by South Asia at 52.8%. South-East Asia, Central Asia, and East Asia had average pre-tax income proportions of 51.9%, 49.7%, and 47.6% respectively. The differences in averages and the multiple time series plot in Figure 1 suggests income inequalities across Asia. Similarly, the average wealth or income that individual adults accumulate also differ by region. The difference suggests a possible relation relationship between income and wealth inequalities or vice versa.

Inequalities Asian Ethnic Groups Experience in the Business Environment 19 taxes leading to the deduction that pre-distribution of wealth and income contributes to the inequality gap. 4.2.2. Race and Ethnic Disparities A working paper by Asian Development Bank Institute established that there is a cross country variability in the level of poverty among disadvantaged ethnic groups in Asia. The ethnic poverty gap is higher in countries like Nepal and Pakistan but reduced in the Philippines across the analysis period. The UNDP’s multidimensional poverty index provides additional information on the percentage of poor people by region. Figure 3: Distribution of poor people by region [Source: UNDP& Oxford Poverty and Human Development Initiative] In central Asia, East Asia, and South Asia, about 1%, 5.4%, and 29% of the population indigenous people live in poverty-stricken areas. The racial wealth gap continues to be a problem in Asia, and it is accompanied by disproportionate growth in private and public wealth. In countries like China, private wealth has grown significantly while public wealth has stagnated further affecting the poverty gap.

Inequalities Asian Ethnic Groups Experience in the Business Environment 20 4.2.3. Political Factors Besides the blatant imbalance in political representation in parliaments and elective positions in Asia, capacity to control corruption is crucial in ensuring resource, income, and wealth distribution in the region. Government effectiveness also plays a critical role in ensuring that these countries achieve equality. The following figure summarizes government effectives and control ranking as measured by World Bank’s governance indicators (WGI). Figure 4: The 2021 World Bank Governance Index bar plots for selected regions. Figure 4 shows that Central Asia ranks 68 th , 70 th , and 65 th in government effectiveness, regulatory quality, and control of corruption indices respectively. East Asia ranks 58 th , 54 th , and 59 th in government effectiveness, regulatory quality, and control of corruption indices respectively. Finally, South Asia ranks 43 rd , 31 st , and 38 th in government effectiveness, regulatory quality, and control of corruption indices respectively. 5. Discussion 5.1. Analysis & Interpretation of the Findings The rates of girls and boys completing secondary school in Asia are roughly the same as global averages. However, the rates are slightly lower in Central Asia compared to global