Poverty Reduction in ADB

Pro-poor Sustainable Economic Growth
Ensuring the poor benefit from economic success

Poverty reduction whether related to income or social and living conditions requires conditions in which the poor can participate in, contribute to, and benefit from economic growth.

Such pro-poor growth

• generates employment and income among the poor
• enhances the productive potential of the poor (by creating economic and social infrastructure facilities and services)
• strengthens the governance and business environment to encourage strong private sector participation
• seeks opportunities for strengthening regional cooperation and cross-border development
• promotes a growth process that is environmentally sustainable.

ADB's Medium Term Strategy (2006-2008) focuses on core areas that are relevant for pro-poor growth and inclusive development. They include economic infrastructure and private sector development as well as regional cooperation. The strategy calls for

• more investments in infrastructure for poverty reduction and growth through private sector development and regional cooperation
• support for productive environmentally sustainable sectors that help the poor, such as finance, private sector development, and the small scale urban and rural economy
• promotion of education, health, and social protection systems that strengthen the labor market.

Inclusive growth is one of the three pillars of ADB's new corporate Strategy 2020. However, a clear definition or set of indicators to monitor its progress at the country, project, or program level has yet to be developed. To measure its contribution to inclusive growth, ADB commissioned four studies on its

1. conceptual framework and methodological background [ PDF ],
2. contributions at country level [ PDF ]
3. contribution in rural development projects, and
4. contribution in infrastructure projects [ PDF ].

Read recent ADB publications on inclusive growth in Asia and the Pacific. ADB's new Strategy 2020 emphasizes inclusive growth as a path for poverty reduction in the region.

View ADB's knowledge products and operational expertise on contributing to pro-poor growth.