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Rising Inflation And Lingering Pandemic Effects Drive Surge In Extreme Poverty Across Asia-Pacific, ADB Report Reveals
Photo credit: ADB Website
A new report released by the Asian Development Bank (ADB) underscores the alarming impact of escalating inflation and the ongoing repercussions of the COVID-19 pandemic, as they continue to propel millions in Asia and the Pacific into the clutches of extreme poverty. Titled "Key Indicators for Asia and the Pacific 2023," the report highlights that approximately 155.2 million individuals in developing regions of Asia and the Pacific now grapple with extreme poverty, constituting 3.9% of the regional population.
The staggering figure reveals an additional 67.8 million people pushed into the abyss of extreme poverty, largely attributed to the confluence of the pandemic's aftermath and the amplified cost-of-living crisis. Defined as subsisting on less than $2.15 a day, adjusted for purchasing power and inflation, extreme poverty has become an increasingly prevalent reality for a substantial portion of the population.
ADB's Chief Economist, Albert Park, emphasized the paradoxical trajectory of the region's recovery. "Asia and the Pacific is steadily recovering from the COVID-19 pandemic, but the increased cost-of-living crisis is undermining progress toward eliminating poverty," Park asserted. To combat this disconcerting trend, Park proposed reinforcing safety nets for vulnerable populations and fostering investments and innovation that generate avenues for growth and employment.
Among the worst affected by the mounting cost-of-living crisis are the underprivileged, as they grapple with inflated prices for essential commodities such as food and fuel. The inflation-driven escalation in basic necessities has profound consequences, impeding the accumulation of savings, limiting access to healthcare, and thwarting investments in education and other transformative opportunities. The ramifications of this crisis might disproportionately affect women, given the existing gender wage gap and the burden of unpaid labor that often falls on them.
The report underscores the plight of the impoverished, who not only encounter reduced income but also pay a premium for essential goods and services, exacerbating their financial vulnerability.
In a telling example, the report points out that lower-income households are compelled to purchase essentials in smaller quantities, incurring higher costs compared to bulk purchases. Additionally, suboptimal living conditions, often found in informal settlements, expose individuals to heightened health risks, which, in turn, inflate healthcare expenses.
While the forecast indicates continued economic progress across developing Asia and the Pacific, projections for 2030 anticipate that around 30.3% of the regional populace – an estimated 1.26 billion individuals – will linger in a state of economic vulnerability, surviving on $3.65 to $6.85 per day.
To counteract the surging cost-of-living crisis, governments in the region are urged to bolster social protection systems, intensify support for agricultural development, facilitate access to financial services, prioritize infrastructural investments, and champion technological innovation and human capital development.
The staggering figure reveals an additional 67.8 million people pushed into the abyss of extreme poverty, largely attributed to the confluence of the pandemic's aftermath and the amplified cost-of-living crisis. Defined as subsisting on less than $2.15 a day, adjusted for purchasing power and inflation, extreme poverty has become an increasingly prevalent reality for a substantial portion of the population.
ADB's Chief Economist, Albert Park, emphasized the paradoxical trajectory of the region's recovery. "Asia and the Pacific is steadily recovering from the COVID-19 pandemic, but the increased cost-of-living crisis is undermining progress toward eliminating poverty," Park asserted. To combat this disconcerting trend, Park proposed reinforcing safety nets for vulnerable populations and fostering investments and innovation that generate avenues for growth and employment.
Among the worst affected by the mounting cost-of-living crisis are the underprivileged, as they grapple with inflated prices for essential commodities such as food and fuel. The inflation-driven escalation in basic necessities has profound consequences, impeding the accumulation of savings, limiting access to healthcare, and thwarting investments in education and other transformative opportunities. The ramifications of this crisis might disproportionately affect women, given the existing gender wage gap and the burden of unpaid labor that often falls on them.
The report underscores the plight of the impoverished, who not only encounter reduced income but also pay a premium for essential goods and services, exacerbating their financial vulnerability.
In a telling example, the report points out that lower-income households are compelled to purchase essentials in smaller quantities, incurring higher costs compared to bulk purchases. Additionally, suboptimal living conditions, often found in informal settlements, expose individuals to heightened health risks, which, in turn, inflate healthcare expenses.
While the forecast indicates continued economic progress across developing Asia and the Pacific, projections for 2030 anticipate that around 30.3% of the regional populace – an estimated 1.26 billion individuals – will linger in a state of economic vulnerability, surviving on $3.65 to $6.85 per day.
To counteract the surging cost-of-living crisis, governments in the region are urged to bolster social protection systems, intensify support for agricultural development, facilitate access to financial services, prioritize infrastructural investments, and champion technological innovation and human capital development.
Aug 24, 2023
