What has the impact of covid had on poverty within the Asia Pacific?
What does poverty look like within the Asia Pacific region today?
The Asia Pacific region has been praised for its dynamic economic growth over recent decades and has lifted 1.1 billion people out of extreme poverty since 1990. But the region still contains the highest number of people living in poverty in comparison to the rest of the world.
"The region has an estimated 400 million people living in extreme poverty below the threshold of $1.90 a day. At the higher international poverty line of $3.20 a day, the number of poor rises to 1.2 billion, accounting for more than a quarter of the region's total population." UNESCAP July 2019
Population growth, remote locations, exposure to natural disasters and limited ability to deal with economic fluctuations all have an impact on poverty and highlight the need to address social and environmental factors in addition to economic stimulus in tackling poverty within the region.
Who is most affected by poverty within the Asia Pacific region?
The World Bank predicts that poverty within the Asia Pacific region will increase for the first time in 20 years due to the economic impacts of Covid-19.
Whilst we have achieved substantial gains in reducing poverty within the Asia Pacific region, these gains have not been even. Vulnerable groups such as women, people living with a disability and rural communities are still experiencing high levels of poverty.
Nearly two-thirds of people living in poverty are in the Asia Pacific region and 65% are women.
The high numbers of women living in poverty pose a threat to human and social development because their children are more likely to repeat the cycles of poverty and disadvantage.
How will COVID have an impact on poverty within the Asia Pacific?
The speed of growth of Asia-Pacific economies was forecast to slow down in recent years. But due to the impact of COVID-19, this slow down will intensify, having a direct consequence on poverty.
We need to take collective action to ensure years of progress in poverty reduction are not cancelled, and that efforts to confront poverty caused by COVID-19 also face threats that disproportionally impact the world's poor at the same time, particularly conflict and climate change.
"Global extreme poverty is expected to rise in for the first time in over 20 years as the disruption of the COVID-19 pandemic compounds the forces of conflict and climate change, which were already slowing poverty reduction progress.
The COVID-19 pandemic is estimated to push an additional 88 million to 115 million people into extreme poverty this year, with the total rising to as many as 150 million by 2021, depending on the severity of the economic contraction." World Bank
What are the key strategies we can use to eliminate poverty?
The needs of all countries within the Asia Pacific region are not the same.
Some are landlocked; others have a limited amount of resources they can capitalise on for export purposes, whilst others have greater exposure to natural disasters or climatic variations.
The strategies we adopt to support these countries must meet the individual country development objectives, capabilities and opportunities. Furthermore, we must be sensitive to and inclusive of the needs of vulnerable members of society, including women and those living with a disability. Social change organisations need to support the aspirations of local people and communities to create sustainable change.
Our understanding of the impact gender inequality has on poverty has grown over time, and the momentum to address this imbalance has intensified.
"The case for gender equality is founded in both human rights and economic arguments. As such, closing gender gaps must be a central part of any strategy to create more sustainable and inclusive economies and societies." OECD
Good Return works to address the gender imbalance by implementing strategies that provide women with access to responsible finance, which empowers them with opportunity, and financial education that helps inform their financial decisions.
What role does Good Return play in eliminating poverty?
Good Return works to empower people to grow their incomes and break the poverty cycle for good.
We do this by providing access to responsible microfinance to help women establish or grow an existing small business. Women feel empowered when they have access to opportunities to help make a change in their lives and this provides them with hope for a better future.
At Good Return, providing access to responsible finance is only half of what we do.
The other half of our mission is to empower those living in poverty to develop the knowledge and skills they need to manage their household and business finances well, now and into the future.
With COVID-19 already placing additional pressures on the ability of developing countries to provide essential support services to their vulnerable populations, these women need our support more than ever.
Visit our loan page here to fund a microloan to help a woman start or grow a small business.