Millennium Development Goal of Halving Poverty in Asia and the Pacific Region: Progress, Prospects and Priorities

This paper reviews the progress made in attaining the millennium development goal (MDG) of poverty reduction, assesses the prospects of achieving it by 2015, and identifies priorities in accelerating poverty reduction in Asia and the Pacific region.

The analysis reveals the following findings:

• In east Asia, actual growth rate exceeds that required to achieve the MDG of halving poverty, while in south Asia, it falls short of the requisite rate;
• The required rates of agricultural growth are higher than the actual in both east and south Asia;
• Moderate growth, in combination with reduction of income inequality, will reduce poverty at the sub-regional and country levels;
• Improvements in selected indicators of institutional quality will have substantial effects on poverty through higher incomes;
• While historical factors shape institutional quality, human capital independently has a positive effect on it.

The paper lists the following key elements of a pro-poor strategy of growth:

• A credible and sound macro-policy regime;
• Increased agricultural productivity;
• Effective land rights for women;
• Diversification of rural economies through non-farm opportunities;
• Easier access to markets, credit and other financial services of disadvantaged groups;
• Greater transparency and accountability in local institutions.

The paper recommends:

• A sharper focus on institutional quality improvements;
• Careful attention to assessments of poverty impacts;
• Implementation of measures for conflict prevention.