COVID-19 Pandemic And Rising Costs Push At Least 68 Millions Into Extreme Poverty In Developing Asia

The COVID-19 pandemic, coupled with escalating living expenses, has driven nearly 70 million more people into extreme poverty across developing Asian countries in the past year, according to a report from a prominent Philippines-based development bank.

The Asian Development Bank (ADB) unveiled its findings on Thursday, revealing that over 155 million individuals in developing Asia endured extreme poverty in 2022.

This marks an alarming increase of 67.8 million people compared to a hypothetical scenario without the pandemic’s impact. The ADB’s report highlights the devastating ripple effects of the global health crisis on vulnerable populations.

The ADB’s 2021 projections suggested that an additional 75-80 million people had plunged into extreme poverty across the region during the preceding year, underscoring the pandemic’s far-reaching consequences on economic well-being.

Also Read: At least 200,000 Families Escape Poverty Dragnet through Mobile Phones- GSM Report

Extreme poverty, a classification defined by the World Bank, entails subsisting on less than $2.15 a day, using 2017 prices as a baseline and accounting for inflation.

Despite earlier expectations of ongoing advancements in poverty alleviation, the ADB’s report outlines a sobering prediction: by 2030, approximately 30.3 percent of the region’s population—equivalent to around 1.26 billion individuals—could find themselves living on a meager $3.65 to $6.85 per day.

In light of these grim projections, the Manila-based development bank is urging the governments of developing Asian nations—encompassing 46 economies across the region—to adopt various strategies to mitigate the crisis. Recommendations include bolstering social safety nets for impoverished citizens, enhancing access to financial services, investing in infrastructure, and fostering technological innovation.

ADB Chief Economist Albert Park underscored the importance of swift action: “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. By strengthening social safety nets for the poor and fostering investment and innovation that creates opportunities for growth and employment, governments in the region can get back on track.”

The ADB’s report serves as a stark reminder of the far-reaching consequences of the pandemic and the urgent need for targeted interventions to counter the growing challenge of extreme poverty across developing Asia.