The Asian Development Bank (ADB) recently released its Key Indicators for Asia and the Pacific 2021 report, indicating significant progress across a range of development goals over the past two decades. The report provides a comprehensive overview of economic, financial, social, and environmental statistics for 49 regional ADB members.
Understanding the Asian Development Bank
Founded in 1966, ADB is a regional development bank consisting of 68 member countries. India is one of the founding members. The Bank’s main goal is to foster social and economic growth within Asia and the Pacific region. Its headquarters are in Manila, Philippines. As of December 31, 2019, ADB’s five major shareholders were: Japan and the United States (each owning 15.6% of total shares), the People’s Republic of China (6.4%), India (6.3%), and Australia (5.8%).
Key Findings: Poverty and the Pandemic’s Impact
Significant strides in poverty reduction were severely impacted by the pandemic, which pushed an additional 75-80 million individuals into extreme poverty in the Asia-Pacific region last year. In 2017, 203 million people lived in extreme poverty; however, without Covid-19, this figure would have fallen to an estimated 2.6% in 2020.
Contribution to Global GDP
Despite robust growth and contributing up to 35% to the global GDP in current US dollars in 2019, the Asia and the Pacific’s economy was hit hard by Covid-19 as domestic investments dwindled and global trade and economic activity slowed.
Household Income and the Pandemic
Many households running businesses were gravely affected by the pandemic. Of those involved in agriculture or wage-based jobs, over half reported either an increase in income or a decrease of less than 26%.
Employment and Unemployment Rates
As global unemployment rates spiked by at least 20% in 2020, the Asia-Pacific region lost an estimated 8% of working hours. Business disruptions led to widespread job losses and increased rates of unemployment and underemployment.
Labour Force Participation Changes
Between 2019 and 2020, labour force participation rates among women and men declined by 1.4% and 0.8% respectively. Currently, non-agricultural employment accounts for 71% of Asia-Pacific’s workforce, increasing from 52% in 2000. This is one of the fastest growth rates worldwide.
Sustainable Development Challenges
The Covid-19 pandemic threatens to undo progress made towards the United Nations-mandated Sustainable Development Goals (SDG) in the Asia-Pacific region.
Impact on Children
Although the prevalence of undernourishment declined from over 521 million individuals in 2001 to 316 million in 2019, schooling was heavily disrupted due to Covid-19. Despite remote learning measures, poorer students faced more significant educational interruptions during the pandemic.
Path Ahead
While Asia and the Pacific have shown remarkable growth, the Covid-19 pandemic has exposed economic and social vulnerabilities that could compromise sustainable and inclusive development. To contribute effectively towards the United Nations’ 2030 Agenda for Sustainable Development, decision-makers must utilise high-quality, up-to-date data to guide actions, ensuring no one, particularly the poor and vulnerable, is left behind in the recovery process.