Govt need to continue fiscal measures to address rising poverty, says ADB chief economist
Bernama
April 28, 2021 17:58 MYT
April 28, 2021 17:58 MYT
Sawada said more than 100 million people are falling below the international poverty line and causing serious social issues. Pic for illustration purpose
KUALA LUMPUR: Continued government fiscal measures are critical in addressing rising poverty in developing countries in Asia amid the COVID-19 pandemic era, said Asian Development Bank (ADB) chief economist Yasuyuki Sawada.
He said more than 100 million people are falling below the international poverty line and causing serious social issues.
"Hence, it is critical for the government to continue fiscal measures to support those falling below the poverty line.
"Ensuring an inclusive rebound in the economy is also vital to alleviate poverty," he said during a webinar on ADB's Asian Development Outlook (ADO) 2021.
ADB, in the ADO 2021 findings released today, stressed that economic contraction in 2020 had led to higher unemployment and lower incomes, forcing more people into poverty.
It is estimated that about 162 million more people in developing Asia are living below the US$3.20 (US$1= RM4.09) a day poverty threshold because of COVID-19.
Following this, there is an increasing number of households that are unable to support their children's education and more children are dropping out of school.
ADB said about 506,130 students out of 800 million pre-primary, primary, and secondary school students in developing Asia dropped out of school in 2020.
Hence, it believes that the region needs to invest US$373 billion annually to end poverty and hunger and US$296 billion to improve health and education.
ADB also said US$196 billion is needed to expand public infrastructure and US$156 billion to safeguard biodiversity.
It said that based on current gross domestic product growth and economic activities forecasts, extreme poverty in developing Asia is expected to decline to 132.5 million people in 2021 and 104.4 million in 2022.
The largest declines are expected in South Asia, where extreme poverty is projected to fall by 31.2 per cent in 2021 and 23.6 per cent in 2022, as it is forecast to grow much faster than other regions.
-- BERNAMA