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Home : Topics : Poverty Reduction : Poverty Matters e-Newsletter : Issue 4, February 2009

Poverty Matters
Newsletter on Poverty Reduction and Inclusive Growth
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IN FOCUS

ADB's New Project Classification System

Since January 2009, ADB has a new project classification system [ PDF: 200kb | 21 pages ]. From tracking only financial inputs to sectors, it has now evolved to include monitoring of impact contribution to locations, strategic development areas (including addressing climate change), partnerships, and project components in sectors.

A specific marker helps monitor ADB's contribution to target poverty reduction and inclusive growth. This helps in doing further analysis on how poverty reduction correlates with ADB's sector investments, thematic and spatial priorities, and partnerships.

The new project classification system applies to all financial modalities supported by both ADB's sovereign and non-sovereign cooperation windows. A comprehensive online tool facilitates easy project reporting.

Furthermore, the recent system aids ADB in reporting on its Strategy 2020 priorities, contribution to the Millennium Development Goals (MDGs), as well as in meeting other reporting requirements, such as those from the Development Assistance Committee (DAC) of the Organisation for Economic Co-operation and Development (OECD), or the World Trade Organization (WTO), among others.

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PROJECTS

Psychosocial Health in Conflict-Affected Areas Project in Sri Lanka (Project Completion Report) [ PDF: 28kb | 2 pages ]
The project completion report analyzes a technical assistance extended to Sri Lanka to address psychosocial health concerns in conflict-affected areas. The report found that such interventions of the Ministries of Health and Social Services still remain very limited both in location as well as in scope. It also found that the capacities available at the NGO-level need substantial strengthening. The report recommends the development of a social marketing campaign to increase people's awareness of psychosocial health problems and the help available to them.

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For suggestions and questions, please contact the Poverty Unit in ADB's Regional and Sustainable Development Department
Email: Poverty-Matters@adb.org

Cambodia's Poorest Families Receive Food Assistance
ADB provides Cambodia's poorest families with $35 million in emergency food assistance as they struggle to cope with rising food and fuel prices. Poor families will receive free rice and other food subsidies provided through early childhood learning centers and primary schools. In addition, food-for-work programs and seed and fertilizer will help impoverished farmers. The emergency food aid project is financed by a $17.5 million grant, an additional $17.5 million concessional loan from ADB, and a $5 million contribution from the Government of Cambodia.

Improving Irrigation Systems in the Philippines to Stimulate Rice Production
International grain prices, including rice, rose by 40% between March 2007 and March 2008. The price hike stimulated urgent efforts for self-sufficient rice production by 2013, the Philippines being a major global importer of rice as it is the nation's staple food. To enhance food production, increase farm household incomes and reduce rural poverty, ADB is preparing a $50 million investment project to upgrade infrastructure and services for about 40,000 hectares of irrigated land.

ADB LOOKS FOR POVERTY CONSULTANT
ADB has just approved its technical assistance for knowledge networks on poverty reduction and inclusive growth. The project will facilitate working papers and policy briefs, seminars and conferences, and the development of an Asian website on Poverty Reduction and Inclusive Growth, linking up to 70 think tank institutions in the region. In this context, we are looking for an eminent adviser (or team) on poverty reduction (working from home office) to manage and coordinate this project. Interested colleagues may contact: abauer@adb.org.

Development of Poor Urban Communities in the Philippines
The Development of Poor Urban Communities Sector Project (DPUCSP), launched in 2003, is a pro-poor set of investments in secure tenure, housing, and livelihood support. Assisetd by a ADB with a $30.5 million loan, the DPUCSP aims to provide housing and improve the income and quality of life of the urban poor. Specifically, its purpose is to put in place systems for providing affordable housing, serviced building sites, and microcredit facilities to the poor.

The project intends to achieve this through its three components, namely: a) re-lending for site development and secure tenure to qualified local government units (LGUs), non-government organizations, private sector developers, and similar project proponents; b) financing the acquisition of serviced plots, construction of new housing units, improvements to existing housing, and microenterprise credit facilities; and c) providing capacity building and project implementation support to beneficiary local communities, LGUs, and other project proponents.

Organic Crops or Energy Crops? Options for Rural Development in Cambodia and the Lao People's Democratic Republic
An ADB Institute discussion paper examines the prospects for organic agriculture (OA) and the biofuel production as strategies for rural development in Cambodia and the Lao People's Democratic Republic (Lao PDR). The paper remarks on the poverty reduction impact these would have in the environmental and social sector areas, as well as the potential of OA and biofuels in both countries, taking into account the market access (especially for organic foods) and costs of certification.

Alternative Livelihoods for Upland Ethnic Groups in Laos [ PDF: 300kb | 30 pages ]
The Xamneua and Xamtai districts in Houaphanh province of Laos suffer from rural poverty and destructive farming practices. This project aims to improve alternative sources of livelihood for ethnic groups in 31 poor villages, promote the conservation of natural resources (by discontinuing shifting cultivation farming), and eradicate opium farming. Achieving these results requires building the capacity of village development committees in community development planning, facilitating inclusive growth among the ethnic groups by improving their access to water supply, sanitation, and health programs, and enabling ethnic groups to adopt alternative sources of livelihood through skills development, training, and productive resources.

Developing an Inclusive Insurance Sector in Bangladesh
Only 7% of the 134 million people in Bangladesh have access to insurance. This project, funded with a $2 million grant from ADB's Japan Fund for Poverty Reduction (JFPR), will establish viable life and asset insurance for about 20,000 poor people living below the $2 poverty line. It involves profiling the rural poor's health risks and insurance awareness, developing microinsurance products, reviewing the current legal and policy framework relevant to microinsurance and making recommendations for enhancement, and creating awareness and building capacity for a sustainable microinsurance scheme.

Other recently approved projects:

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KNOWLEDGE DEVELOPMENT

The US Financial Crisis, Global Financial Turmoil, and Developing Asia: Is the Era of High Growth at an End? [ PDF: 6,520kb | 85 pages ]
The global economy is threatened with a deep and prolonged recession due to the financial meltdown in the USA. The global recession has major implications on the employment and poverty dynamics in Asia. A recent ADB paper argues that the region needs to rebalance its economies towards more local (and subregional) consumption, infrastructure investment, and improved health and social security programs. It sets the context for the Asian Development Outlook 2009 available this May. Throughout 2009, ADB and ADBI will be doing a series of seminars and conferences on the social impact of the global economic recession.

Ex Ante Impact Assessment of Conditional Cash Transfers on School Attendance and Poverty in the Philippines [ PDF: 540kb | 31 pages ]
In 2008, the Philippines' conditional cash transfer program, Pantawid Pamilyang Pilipino, was expanded nationwide to include 300,000 poor households in the 36 poorest provinces in the country. The program provides a cash allowance (through the Landbank of the Philippines) of PhP300 per month per poor child, aged 6-14, for 10 months of school attendance. In addition, a cash transfer of PhP6,000 per year is provided to poor mothers on the condition that they (a) avail of prenatal and postnatal care, (b) have their birth attended by a skilled/trained professional (c) attend family planning sessions, and (d) ensure regular check-ups of their children below 5. The program costs about 1.5% of the country's GDP.

Remittances and the Brain Drain: Why the Poor Transfer more than the Skilled Workers
A new research ADB paper finds that remittances decrease for migrants with tertiary education. This provides an additional reason for source countries to prefer unskilled to skilled labor migration. Moreover, remittances increase with source countries' level and rate of migration, financial sector development and population, and decrease in per capita income and expected growth rate.

The People's Republic of China (PRC) Must Balance Transport Growth with Environmental Sustainability
The rapid rollout of transport infrastructure in the PRC has been at the heart of its economic success, but it now needs to place more emphasis on environmentally sustainable transport systems that can help cut the country's heavy reliance on oil. The publication, "Promoting Environmentally Sustainable Transport in the People's Republic of China", lays out a blueprint for the sector that balances the need to cater to the country's growing transport requirements, while protecting the environment.

Reviewing the Poverty Impact of Regional Economic Integration in the Greater Mekong Subregion [ PDF: 40kb | 2 pages ]
Regional integration is expected to contribute significantly to economic growth in the Greater Mekong Subregion and improve the livelihoods of the people. However, to ensure that the poor benefit fairly from regional integration, appropriate regional, national, and local strategies are needed. Such strategies are particularly important for communities in the front line of border interactions and likely to be directly affected by regional integration. A technical assistance (TA) was prepared to provide a more comprehensive base of information about cross-border livelihood interactions and poverty. The highly successful TA also assisted in the formulation and modification of national poverty reduction strategies.

Inclusive Growth: Why It Is Important*
Over the last two decades, Asia has experienced rapid economic growth. However, growth has not been inclusive, according to various reports and studies. The rich are getting richer much faster than the poor.

Inclusive growth is one of the three pillars of ADB's new Strategy 2020. Especially in these times of global economic slowdown, it is becoming more important to protect the low income people in the region against the risk of impoverishment. Equal access to quality health care, education, and other social services, as well as access to well-paying job opportunities should be the objective of public policies.

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TOOLS AND PARTNERSHIPS

Poverty and Social Development Indicators Selected Poverty and Social Development Indicators (2001)
In 2001, ADB published a book on selected poverty and social development indicators. Other poverty data are accessible through ADB's Statistical Database System.






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LOOKING AHEAD

The next issue of the Poverty Matters Newsletter (March 2009) will have a special feature on the social impact of the global recession on the poor and vulnerable in Asia. It will also provide more information on a forthcoming conference on the impact of the global recession on poverty and inclusive development in Asia. The conference will be organized later this year, together with other development partners such as the ASEAN Secretariat and the ASEAN Foundation, the Poverty and Development Initiative (PADI), and the Asian Development Bank Institute (ADBI).

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For more information how ADB supports the poverty and inclusiveness agenda in the region, visit the Poverty Reduction website and the Social Development website.

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