> Asian Development Bank (ADB):
Tackling Asia Pacific’s Unfinished Development Agenda Head-On By Tomoyuki Kimura
When the Asian Development Bank (ADB) was established in 1966, Asia and the Pacific was poor, and one of the most important challenges was how to feed its large and growing population.
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he progress since then has been spectacular. Asia and the Pacific has been globally the fastest-growing region in recent decades, with a share of global gross domestic product rising from 25% in 2000 to 33% in 2016. The region is expected to account for more than half of global production by 2050. Individually, countries are doing well. The People’s Republic of China and India are now among the world’s largest economies. The countries of the Association of Southeast Asian Nations (ASEAN), with a collective population of close to 640 million, have become important market-oriented emerging economies. Robust growth has resulted in a dramatic reduction in income poverty and improvements in living standards. Extreme poverty, as measured by the $1.90 a day threshold at 2011 purchasing-power parity, significantly declined in developing Asia from 53% in 1990 to about 9% of the total population in 2013. While these positive trends are expected to continue, the situation is not entirely rosy. The region was still home to 326 million people living in extreme poverty in 2013. An additional 915 million people lived above $1.90 a day, but below $3.20 a day, putting them at risk of being pushed back into extreme poverty during economic downturns or other external shocks. The number of food-insecure people also remains significant – 64% of the undernourished people in the world (almost 520 million) lived in Asia in 2016. Income inequality has risen in several countries, and social disparities remain. Close to 80% of the region’s population lived in countries with widening inequality between the 1990s and 2000s. Not surprisingly, the rate of poverty is higher in rural than urban areas, and significant
"ADB will continue to prioritise support for the region’s poorest and most vulnerable countries." differences exist in school participation and learning achievement and in access to electricity, water sources, and sanitation. Systemic gaps persist in productivity, wages, and income levels, particularly in households headed by women. Growing inequality could undermine social cohesion, endanger social and political stability, and hamper the region’s economic prospects. There are myriad other issues to address. Climate change and disasters threaten the long-term sustainability of development in the region. The Pacific region is particularly vulnerable, as the projected rise in sea levels threatens the longterm viability of many of its islands. Of the 10 countries worldwide with the highest estimated disaster risk, seven are in developing Asia. Meanwhile, the region faces other environmental issues, including air and water pollution, marine litter at sea and in coastal areas, inadequate waste management, deforestation, land degradation, and biodiversity loss. These impose more vulnerabilities on the poor, who tend to depend on the local ecosystem for livelihoods and food security. More than 400 million Asians lack electricity, about 300 million have no access to safe drinking water, and 1.5 billion lack basic sanitation. In many countries, power outages restrain economic growth and underdeveloped transportation networks restrict the flow of people, goods, and services. Besides poor-quality infrastructure and services requiring urgent attention, rehabilitation
and better management and maintenance of infrastructure is also essential. Based on ADB’s most recent estimates, Asia and the Pacific will need to invest $26.2 trillion during 2016–2030, or $1.7 trillion a year for infrastructure, to maintain its growth momentum, eradicate poverty, and address climate change. To respond to these challenges, ADB launched Strategy 2030 – its new long-term corporate strategy – in July 2018. Under Strategy 2030, ADB will seek to promote prosperity, inclusiveness, and resilience in the Asia and Pacific region while sustaining efforts to eradicate extreme poverty. ADB will continue to prioritise support for the region’s poorest and most vulnerable countries. It will apply differentiated approaches to meet the diverse needs of various groups of countries: fragile and conflict-affected situations, small island developing states, low- and lower middleincome countries, and upper middle-income countries. Across these country groups, ADB will also prioritise support for lagging areas and pockets of poverty and fragility. Infrastructure investments – particularly those that are green, sustainable, inclusive, and resilient – will remain a priority. At the same time, ADB will expand operations in social sectors, such as education, health, and social protection. ADB’s support will focus on seven operational priorities: addressing remaining poverty and reducing inequalities; accelerating progress in gender equality; tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability. Other efforts go towards making cities more livable; promoting rural development and food security; strengthening governance and institutional
"More than 400 million Asians lack electricity, about 300 million have no access to safe drinking water, and 1.5 billion lack basic sanitation. In many countries, power outages restrain economic growth and underdeveloped transportation networks restrict the flow of people, goods, and services." 204
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