Poverty Reduction

ADB Basics
Fighting Poverty in Asia and the Pacific

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The Asian Development Bank has rededicated itself to reducing poverty in Asia and the Pacific. ADB believes that a region free of poverty is an achievable and realistic goal.

Asia and the Pacific have made tremendous economic and social gains over the past three de- cades. Per capita income has tripled. A smaller proportion of the population is poor. Life expectancy at birth has increased by al- most 20 years. The literacy rate has almost doubled.

Yet, Asia and the Pacific are still home to 900 million poor people—nearly one third of the region’s population. South Asia alone has more than 500 million poverty-stricken people, twice as many as in the whole of Africa. Two thirds of Asia’s poor are women.

In Southeast Asia, the financial crisis has stalled decades of development and dragged millions of people—especially vulnerable groups—back into poverty. Many people in the Central Asian republics have also slipped into poverty with the transition to market-based economies.

Making the Vision a Reality

It is unacceptable in a world so rich in resources and brilliant minds that poverty still plagues so many people. For ADB, a region free from poverty is not mere rhetoric.

A comprehensive poverty analysis and projects that promote pro-poor, sustainable economic growth; social development; and good governance are the pillars on which ADB’s poverty reduction strategy is built.

The starting point for reducing poverty is a comprehensive country poverty analysis. Key stakeholders will discuss the findings of the analysis in a participatory high-level forum. The outcome of these discussions will form the basis of ADB’s new country operational strategies. A partnership agreement between the government and ADB will then identify ADB’s operations for helping to reduce poverty in each country.

• Pro-poor, sustainable economic growth can reduce poverty by generating income among the poor and fostering equitable development with, and for, the poor.

• Social development must accompany pro-poor economic growth if poverty is to be reduced. It requires ensuring comprehensive social protection; providing access to basic necessities—such as education, primary health care, and water and sanitation; and promoting social institutions and the social capital of vulnerable groups.

• Good governance for poverty reduction means public policies that encourage the inclusion of the poor and other vulnerable groups in the development process. This involves pro-poor public expenditures, social services that are nearer to the users and have more relevance for the poor, policies that generate equity and access to socioeconomic assets, and enhanced social relations—including gender equity and the improved status of women.

Retooling for Poverty Reduction

The poor are not a homogeneous group. Just as the nature of poverty is diverse, so too are its causes and victims. Countries themselves have the primary responsibility for fighting poverty. But success will depend on the united, sustained efforts of local and national governments, civil society, nongovernment and community-based organizations, ADB and other funding agencies, and—most importantly—the people of Asia and the Pacific.

The single-mindedness of this approach is changing how ADB does business. All ADB staff, from the President to project officers, are making poverty reduction their priority by retooling procedures, processes, and projects. A new Poverty Reduction Unit is leading the effort, guided by the Presidential Commission on Poverty Reduction.

Beginning this year, all operations are being programmed to contribute specifically to poverty reduction. An annual action plan for poverty reduction is being prepared and country partnership agreements are being developed. By 2001, ADB will devote at least 40 percent of its lending volume to poverty reduction through social development. By 2002, ADB will have substantially increased its lending for core poverty interventions.

Winning the Fight

Developing economies is about developing people. This means that all ADB activities, whether promoting economic growth, supporting human development, encouraging sound management of the environment, or improving the status of women, must prove that they benefit people, particularly the poor.

ADB has a clear vision of a region free of poverty: a vibrant society of healthy, educated, and productive people living in a clean environment. Pro-poor public policy and action can change the statistics. One life at a time, we can win the fight.

For More Information

Contact ADB's Poverty Reduction and Social Development Divsion, Regional and Sustainable Development Department

Email: poverty@adb.org
Phone: (632) 632 6646
Fax: (632) 636 2360/2356
Address: Asian Development Bank,
P.O. Box 789
0980 Manila, Philippines