But if growth is broad based, it is possible to make a real significant reduction of poverty and over a generation reduce pockets of poverty. India is similar to China where you see rapid growth in the coastal areas and less so inland. In India, the South has made remarkable progress and already you can see characteristics of East Asia. The heart of the problem is the large northern states in the heartland. Sri Lanka is a Malaysia waiting to happen.
People forget Malaysia had major ethnic tensions a generation ago.
If Sri Lanka can resolve theirs, there is no reason that it can't repeat the Malaysian experience. Pakistan is going through a difficult period. They haven't been able to generate the resources through taxation to support the development policy they would like. They need to get taxes from people who had previously been exempt. They have had levels of protection that penalize economic growth.