Population and poverty: Challenges for Asia and the Pacific

Over the past decade, East Asia has halved the proportion of people living in extreme poverty on a dollar or less per day, from 28 to 14 per cent. During the same period, South Asia, where nearly half the world’s poor live, has seen a more modest drop: from 44 to 40 per cent. While part of East Asia’s success can be attributed to good economic policies, economic growth is by no means a magic potion. In fact, growth can actually increase income inequality and widen the gap between rich and poor. To reduce extreme poverty, social investment is needed to expand opportunities, capabilities and participation so that people can climb out of poverty.