According to the World Bank’s standard poverty measure, one in five Asians live in extreme poverty. However, a recent Asian Development Bank (ADB) report, asserts that this standard measure does not capture the true extent of extreme poverty in the region. The ADB’s model notes the proportion of Asians actually living in extreme poverty is closer to one in two–more than twice the standard measure.
Shang-Jin Wei, the ADB’s new chief economist, detailed why these measures vary so significantly, what ADB’s analysis means for development policy, and how higher poverty rates will affect the region’s future. He also presented the ADB’s updated analysis of Asia’s recent economic performance and prospects over the next two years.
This event was cosponsored by the Asian Development Bank.
Shang-Jin Wei is the chief economist of the Asian Development Bank where he is the chief spokesperson on economic and development trends and oversees the Economics and Research Department.
Vikram Nehru is a senior associate in Carnegie’s Asia Program where he focuses on the economic, political, and strategic issues confronting Asia, particularly Southeast Asia.