By Mark Smulian | 15 August 2013
Poverty and hunger still threaten the sustainability of Asia’s rapid economic growth, the Asian Development Bank warned today.
Its report, Ending Asian Deprivations: compulsions for a fair, prosperous and equitable Asia, said poverty affected ‘vast sections’ of the continent’s population despite the high growth rates seen in some countries.
The study, undertaken with the National University of Singapore, found that a fifth of Asia’s population still lived in extreme poverty. If highly vulnerable people at risk of falling back into extreme poverty were included, this proportion could rise to 50%.
Kazu Sakai, director general of ADB’s strategy and policy department, said: ‘Asia’s future prosperity will only be assured if countries continue the fight against poverty and other areas of deprivation, and this will require proactive state intervention.
‘As the deadline for [meeting the United Nations'] Millennium Development Goals looms in 2015, this publication provides a timely reminder of the vast unfinished business in the region and the steps needed to end deprivation across the board.’
Many countries will likely fall well short of achieving the globally agreed MDGs in areas such as basic sanitation, underweight children, infant and maternal mortality.
Meanwhile growing income gaps and other forms of inequity are becoming increasingly acute. The study found that while Gross Domestic Product growth helped to reduce income poverty, it played a much smaller role in reducing other deprivations, like education and health.
New approaches may need to be considered to make growth more inclusive and to promote more effective state action in areas such as skills development, delivery of quality education, and incentives for entrepreneurs, it said.
Policymakers should also create conditions for more small- and medium-sized enterprises to flourish, and to reduce the informal sector through actions like improved property rights and access to finance, the study suggested.
Other areas where governments should increase support include infrastructure, improving urban environments, social protection programmes and the removal of gender inequities and labour market rigidities to boost employment opportunities.
