The Asian Development Bank (ADB), based in the Philippines, has reported a significant rise in extreme poverty in developing Asian countries, primarily due to the COVID-19 pandemic and escalating living costs. According to the ADB’s 2022 report, the number of people living in extreme poverty in the region increased by approximately 67.8 million compared to figures that would have been projected without the pandemic’s impact. This increase brings the total number of individuals facing extreme poverty in developing Asia to over 155 million.
The ADB’s assessment in 2021 had estimated an increase of 75-80 million people in extreme poverty during 2020, indicating the pandemic’s continuing adverse effect on poverty levels. The World Bank defines extreme poverty as living on less than $2.15 per day, with this figure adjusted based on 2017 prices and inflation rates.
Despite initial expectations of poverty reduction, the ADB predicts that by 2030, around 30.3 percent of the population in the region, equating to roughly 1.26 billion people, will live on $3.65-$6.85 a day. This outlook emphasizes the enduring challenge of poverty in developing Asia.
To address this issue, the ADB suggests several strategies for governments in the region. These include bolstering social welfare systems, enhancing access to financial services, investing in infrastructure, and promoting technological innovation. These measures aim to create growth opportunities and employment, helping to mitigate poverty levels.
ADB Chief Economist Albert Park highlighted the region’s steady recovery from the COVID-19 pandemic. However, he noted that the current cost-of-living crisis is impeding progress in eliminating poverty. Park emphasized the importance of governments strengthening social safety nets and fostering investment and innovation to help the region get back on track towards poverty reduction goals.
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