What is the ADB’s approach to poverty reduction?

The Asian Development Bank’s approach to poverty reduction is centered on the concept of inclusive economic growth, sustainable development, and shared prosperity. This approach recognizes that reducing poverty effectively requires not just economic growth, but also ensuring that the benefits of this growth are shared widely among all segments of society. By focusing on inclusivity, the ADB aims to address the needs of the poor and marginalized groups, thereby empowering them to participate in economic activities that can elevate their living standards.

Sustainable development is a key component of this strategy, ensuring that economic growth does not come at the expense of environmental degradation. This implies that as economies grow, there is a concurrent effort to preserve ecosystems, promote resilience to climate change, and maintain resources for future generations. Shared prosperity emphasizes the need for policies that distribute the gains from economic progress fairly across different populations, including low-income groups.

This holistic framework is essential because merely increasing taxation, solely focusing on private enterprise, or modifying trade barriers does not necessarily create a comprehensive or effective solution for poverty reduction. Such singular strategies may overlook the broader context needed to tackle the multifaceted nature of poverty, including social, economic, and environmental factors. The ADB, through its inclusive and sustainable approach, aims to build comprehensive pathways for poverty allev