NEWS CENTER – According to a report by the Asian Development Bank (ADB), high inflation coupled with the COVID-19 pandemic has plunged nearly 68 million people into poverty in Asia as of last year. The report announced that 155.2 million people in developing Asia live in extreme poverty, of which 68 million are due to the COVID pandemic and high inflation.
INFLATION AND EPIDEMIC FIRST CAUSES
According to inflation-adjusted 2017 prices, extreme poverty is defined as living on less than $2.15 a day. Both the pandemic and escalating geopolitical tensions have disrupted supply lines over the past few years, leading to higher inflation around the world.
The bank’s Chief Economist Albert Park said the crisis from COVID and high inflation “undermines progress towards poverty eradication” as countries in the Asia and Pacific region are steadily recovering.
WOMEN ARE MORE IMPACTED
Those who suffer the most from inflation are those with low incomes who cannot afford the high prices of food, fuel and other necessities. According to the report, this erodes the incomes of the poor and middle-income, causing them to save less for health, education or other opportunities that could improve their situation in the long run.
The report also states that women who are currently struggling with discrimination and income inequality are more affected by the current crisis.
SOCIAL PROTECTION SYSTEMS MUST BE STRENGTHENED
The report recommends that governments in Asia strengthen social protection systems, increase support for agricultural development, improve access to financial services, prioritize infrastructure investment and encourage technological innovation to combat the cost of living.
