Manila: The Asia Pacific region will find it harder than before to escape poverty as the Covid-19 pandemic has pushed back the fight against poverty in the region by at least two years, according to a report from the Asian Development Bank (ADB).
The region’s economic growth this year is expected to reduce extreme poverty to a level that would have been achieved in 2020 had the pandemic not happened, according to Key Indicators for Asia and the Pacific 2022, released on Wednesday. People surviving with less than USD 1.90 (about Rs 150) per day fall under extreme poverty.
Data reveals that people in the region with lower pre-pandemic levels of social mobility–the ability to escape poverty–may experience longer-lasting setbacks, the report said.
“The poor and the vulnerable have been hit hardest by Covid-19, and while economies are recovering, many people may find that getting out of poverty is even more difficult than before,” said ADB Chief Economist Albert Park.
“Governments in the region should focus on resilience, innovation, and inclusiveness to provide more balanced economic opportunities and greater social mobility for everyone.”
By 2030, the prevalence of extreme poverty in the region is expected to drop below 1 per cent.
At the same time, about 25 per cent of the population is projected to achieve at least middle-class status, defined as having an income or consumption of USD 15 or more a day.
However, this outlook, the report said, is threatened by differences in social mobility as well as other uncertainties as developing Asia faces the potential for stagflation, increased food insecurity, and energy price shocks.
In conclusion, ADB said it is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty.
From 31 members at its establishment in 1966, ADB has grown to encompass 68 members–of which 49 are from within Asia and the Pacific and 19 from outside.
