Asia-Pacific Grows Richer, Yet Why Has Poverty Not Disappeared?

Over the last few decades, the Asia-Pacific has been recognised as the world’s fastest-growing economic region. Rapid economic development in Asia-Pacific nations has driven increased incomes, expanded trade, and deeper economic integration at both regional and global levels. International cooperation continues to evolve through various regional organisations and forums aimed at promoting more inclusive and sustainable development.

However, behind these achievements, poverty and inequality remain major challenges for the region. The report ‘Protecting Our Future Today: Social Protection in Asia and the Pacific’, published by the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) in 2024, shows that despite economic growth in Asia-Pacific, poverty and inequality in the region have actually increased. Furthermore, more than 260 million people are at risk of falling into poverty in the next decade if social protection is not strengthened. Additionally, approximately 45 per cent of the region’s population still lacks access to adequate social protection.

This situation is a serious concern as it directly relates to the Sustainable Development Goals (SDGs), specifically Goal 1 (No Poverty), which aims to eradicate poverty in all its forms by 2030. However, the Asia and the Pacific SDG Progress Report 2024 indicates that progress towards achieving the SDGs in Asia-Pacific is not sufficiently on track to meet all targets by 2030. In fact, Asia-Pacific is estimated to achieve all SDG targets only several decades after the established deadline. This phenomenon raises an important question: if Asia-Pacific is getting richer, more connected through international trade, and supported by various regional and global cooperation organisations, why has poverty not yet disappeared?

Poverty is one of the primary challenges in the global development agenda. In response to this challenge, the United Nations (UN) established the Sustainable Development Goals (SDGs), consisting of 17 sustainable development goals, with poverty eradication placed as the first goal through SDG 1 (No Poverty), targeting the elimination of poverty in all forms by 2030.

Poverty is not limited to low income, but also encompasses limited access to education, healthcare, decent work, social protection, and various resources that support the quality of life. Therefore, the success of poverty alleviation is closely linked to the achievement of other sustainable development goals, such as quality education, good health, decent work, and the reduction of inequality.

Although the Asia-Pacific region has experienced significant economic growth in recent decades, various reports show that poverty remains a serious challenge in the region. This condition indicates that economic growth does not always correlate directly with the equitable distribution of public welfare. Therefore, to support the achievement of these goals, various actors at both national and international levels need to be involved.

To understand the challenges of poverty alleviation in Asia-Pacific, the Theory of Complex Interdependence, developed by Robert O. Keohane and Joseph S. Nye, explains that modern international relations are no longer dominated solely by security issues and interstate relations, but also involve various economic, social, environmental, and developmental issues that connect countries in a complex network of interdependence (Keohane & Nye, 2012).

According to Keohane and Nye, there are several key characteristics of complex interdependence. First, international relations involve many actors besides states, such as international organisations, multinational corporations, non-governmental organisations (NGOs), and civil society. Second, there is no rigid hierarchy of issues, as economic, social, and environmental issues can be just as important as security issues. Third, cooperation becomes increasingly important because many problems cannot be solved by a single country acting alone.

In the context of poverty, this theory is relevant because the factors affecting poverty do not only originate from a country’s domestic policies. Many other factors can cause rising poverty rates, such as international trade, foreign investment, climate change, technological developments, and various global crises, which can directly impact the economic condition and welfare of the population. Consequently, poverty eradication requires the involvement of various actors and cross-border cooperation.

Complex interdependence views poverty as a shared challenge that requires coordination between governments, international organisations, development agencies, the private sector, and civil society. Thus, international cooperation is one of the essential instruments in supporting the achievement of the SDGs, particularly the goal of poverty eradication in the Asia-Pacific region.

Asia-Pacific is known as one of the fastest-growing economic regions in the world. However, poverty remains a challenge hindering the achievement of the Sustainable Development Goals (SDGs). This is evident from the Asia and the Pacific SDG Progress Report 22024, which shows that SDG progress in the region is still far from the established targets.

According to the report, Asia-Pacific is estimated to only achieve the SDG targets by the year 2062, which is approximately 32 years later than the target set for 2030.