Manila, 25 August: According to a recent research by the Asian Development Bank (ADB), the COVID-19 pandemic’s lingering impacts and the heightened cost-of-living problems brought on by soaring inflation last year are still pushing people in Asia and the Pacific into severe poverty.
According to Key Indicators for Asia and the Pacific 2023, which ADB issued on Thursday, an estimated 155.2 million people in developing Asia and the Pacific, or 3.9% of the region’s population, lived in severe poverty as of last year.
According to an ADB assessment, the figure is 67.8 million more than it would have been in the absence of the pandemic and the rising cost of living problem.
Living on less than USD 2.15 a day, based on 2017 prices and adjusted for inflation and buying power, is considered to be extreme poverty.
“Asia and the Pacific is steadily recovering from the COVID-19 pandemic, but the increased cost-of-living crisis is undermining progress towards eliminating poverty,” said Albert Park, chief economist for the Asian Development Bank (ADB).
Governments in the area may regain control by “strengthening social safety nets for the poor and fostering investment and innovation that creates opportunities for growth and employment,” according to Park.
The heightened cost of living problem has mostly harmed the poor since they are less able to afford higher costs for basic essentials like food and gasoline.
Many poor people are unable to save money, pay for health care, or invest in education or other possibilities that might improve their situation in the long run as a result of price increases for essential products and services, the research stated.
In addition to having lower incomes, the poor must make decisions that may end up costing them more money over time and must pay a premium to obtain basic necessities, according to the research. As an example, it was given that low-income families often had to purchase goods in smaller amounts, which might be more costly than purchasing in bulk.
