Extreme poverty in the Asia-Pacific significantly fell from over 21% in 2000 to 2.6% in 2022, driven by growth, especially in China and Indonesia, but inequality persists, particularly in India and Timor-Leste.
Decline in Extreme Poverty
Extreme poverty in the Asia-Pacific region has significantly decreased over the past two decades. According to the OECD, the percentage of individuals living on less than PPP 2.15 a day dropped from over 21% in 2000 to approximately 2.6% in 2022. This change reflects substantial progress, although countries like India and Timor-Leste still experience higher rates exceeding 10%.
Economic Growth and Inequality
The OECD attributes this decline to robust economic growth in countries such as China, Indonesia, and Kyrgyzstan. However, progress has not been uniform; some nations like Armenia and India have not seen expected reductions in poverty despite significant GDP growth. While inequality has decreased slightly, it remains above the OECD average, with Malaysia and the Philippines facing the largest gaps.
Social Progress and Persistent Disparities
Despite the overall decline in poverty, the findings reveal that economic growth has not benefited all populations equally. The regional Gini coefficient improved from 0.35 in 2010 to 0.33 in 2021, yet disparities persist, indicating that more efforts are needed to ensure equitable income distribution.
Source : Extreme poverty in the Asia-Pacific region has declined but inequality remains high, says OECD