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     May 8, 2007
Asia makes strides in cutting poverty
By Alan Boyd

SYDNEY - Many thought it couldn't be done, but Asia is on track to meet its commitment to halve extreme poverty by 2050, according to the World Bank, with the target likely to be reached several years early.

And it is getting there with only modest gains across much of the continent in education and health, with wide gender disparities in employment, and with inconsistent access to international aid.

The 2007 Global Monitoring Report assesses progress in meeting



eight Millennium Development Goals that were agreed on by 189 countries at a landmark summit in 2000.

Reducing poverty was the core commitment, but improvements were also sought in a range of education, health and sanitation standards, including child mortality, nutrition, completion of primary school and a sustainable use of resources.

Globally, the number of extreme poor - those living on less than US$1 a day - fell by 135 million people between 1999 and 2004 to fewer than a billion, putting the first goal well within reach by 2015.
But all regions of the world are likely to miss their targets for reducing the easily and cheaply preventable diseases that kill 10 million children each year, while nearly 50% of households still lack access to adequate sanitation.

"There is clear evidence of areas of great improvement and problems being solved. Extreme poverty is falling. Measles incidence is declining, gender parity in education is stronger, expanding access to anti-retroviral treatments for people with HIV/AIDS is increasing," World Bank spokesman Mark Sundberg said.

"Concerted effort can yield results, and we also know that developing countries are better prepared to use this aid. The challenge now is to double our efforts and accelerate progress to addressing these remaining challenges."

Asia is generally closer to meeting the overall goals than the other developing regions, including Latin America and Africa, but there are sharp variations in performance across the continent.

The benchmark in the six years that assessments have been taken is East Asia, grouped together with the Pacific in the report, as the region is swept along by the spectacular economic growth of China. Only 2.4% of people in East Asia are expected to be living in extreme poverty by 2010, down from 29.8% in 1990 and well under the target of 15%. In just three years, from 2002 to 2004, 57.7 million people were removed from the list, though inequality remains widespread.

Progress has been less spectacular In South Asia, despite the growth momentum of India, with 18% expected to be living in extreme poverty in 2015. While this is below the target of 21.5%, there were still 462 million people classed as extremely poor in 2004.

About 43% of people in India, Pakistan, Bangladesh, Afghanistan, Iran, Sri Lanka, Nepal and Bhutan were living in poverty in 1990, but the proportion had fallen to 31.7% by 2005. Since 2000, real per capita incomes have grown faster than at any time since the 1960s.

Nepal, dogged by political turmoil and economic stagnation, has registered the slowest improvement. Although the poverty rate fell by 11 percentage points in eight years, it appears unlikely the 2015 deadline will be met.

At the bottom end of the scale, Central Asia - grouped with developing Europe in the report - will need a further spurt to reach the poverty target, though it appears likely to do so with economic growth rates currently averaging 11.5%. As of 2004, the most recent assessment year, 4.4 million people were living in extreme poverty, almost 50% more than in 1990. This represents 0.94% of the combined population, compared with 0.46% in 1990.

Most of the lag is in the former communist countries grouped under the Commonwealth of Independent States (CIS).

There is no direct basis for comparison with other Asian regions because the report adopts the benchmark of $2 a day for extreme poverty because of the colder climate in these countries. But even if the lower threshold of $1 a day were used, Azerbaijan would be the only CIS country to achieve the goal of halving poverty by 2015. Uzbekistan, with an annual per capita income of $520, was classed as the most fragile state.

Interestingly, the gains in poverty eradication have come despite patchy progress elsewhere: South Asia is on course to miss all other development goals, while East and Central Asia are struggling in some areas, possibly because the targets themselves are flawed.

"Some experts think South Asia region is lagging on this set of goals but doing better on the poverty-reduction goal because the human-development goals are ambitious and complicated," the World Bank acknowledged in a foreword to the report.

In the health categories, South Asia has the highest rates of malnutrition in the world, with three countries unlikely to meet the deadline. The prevalence of underweight children younger than five is 38-51% in Afghanistan, Bangladesh, India and Pakistan.

This region also has some of the lowest participation rates for woman in the workforce, frustrating efforts to achieve better gender equality and raise overall income levels. Only about 40% of woman in their 30s are working, compared with more than 90% of men.

By contrast, nearly 80% of women aged 24-49 are employed in East Asia and their share of non-agricultural labor markets, an indicator of how open workforces are to women, is a high 39%.

While social and cultural stigmas often present a gender barrier to the schooling of children in South Asia, East Asia has almost eliminated disparities in elementary and secondary education - though not yet at a tertiary level.

International aid remains a key factor in poverty eradication and the level of inflows may be a pointer to why some regions are lagging behind.

Official development aid for Central Asia decreased in 2002-05, with low-income Uzbekistan, Kyrgyzstan and Tajikistan among the worst affected. Since 2001, grants for these countries have risen by just 9%.

In booming East Asia, official aid increased by one-third in this period to levels last seen in 2002, but this was partly because of humanitarian assistance for Indonesia after the December 2004 tsunami and the emergence of China and South Korea as major donors.

Vietnam was one of the biggest recipients of development aid, attracting commitments of $1.9 billion.

The tsunami was also a big factor in the big increase in aid to South Asia, as Pakistan and Sri Lanka rebuilt shattered communities.

Afghanistan has also seen a 50% increase since 2001, but this was largely due to development projects linked to the US-led "war against terrorism".

India, the largest country in the region, saw aid levels more than double in 2004, but they were still not equivalent to levels seen before 2003.

Alan Boyd, now based in Sydney, has reported on Asia for more than two decades.

(Copyright 2007 Asia Times Online Ltd. All rights reserved. Please contact us about sales, syndication and republishing.)


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