Rural poverty concern in East Asia

16/11/2007
Australian Broadcasting Corporation

"It's probably not enough just to say we have to have strong economic growth overall. On top of that, countries are going to have to think of more targeted social instruments to help those people get on their feet" - Milan Brahmbhatt of the World Bank

A new report by the World Bank says despite robust economic growth in East Asia, rural poverty is a growing concern.

Using the poverty measure of $2 a day, the latest report says fewer than 500 million people now live in poverty in East Asia, down from one billion in 1990.

Indonesia's Papua province, and on a conservative measure, 41 per cent of the population live in poverty, in Java and Sumatra the rate is 16 per cent.

The lead author on the report, Milan Brahmbhatt, has told Radio Australia's Connect Asia program the biggest concerns is the growing gap between incomes in urban areas and those living in poverty in rural areas.

"One of the important social issues that many economies in the region are facing is growing income inequality," he said.

"And it's not a easy thing to tackle, because some of it has very deep roots, and is actually, in some sense, a reflection of success."

More work needed

In Thailand the level of income inequality is moderately high by international standards, in Cambodia the living standards of the poorest have risen by 8 per cent , for the richest by 45 per cent.

Mr Brahmbhatt says governments could do more to help raise rural incomes, including targeted social policies, better infrastructure and most importantly, improved agriculture.

"If, on top of facilitating movement to the cities in the long run, if you can also facilitate faster agricultural growth, then that's where we have powerful impact.

It's probably not enough just to say we have to have strong economic growth overall. On top of that, countries are going to have to think of more targeted social instruments to help those people get on their feet."