A new report from the Asian Development Bank says that the $1.25 per day measures do not fully capture the extent of extreme poverty.
As rapid economic growth in Asia and the Pacific region had led to a dramatic improvement in living standards, extreme poverty when measured as income or expenditure of less than $1.25 per person per day in 2005 purchasing power parity terms, could fall to 1.4 per cent by 2030 if the current trends continue.
A poverty rate below 3pc is interpreted as poverty having been eradicated, says the ADB report, “Key Indicators for Asia and the Pacific 2014” published on Wednesday.
According to ADB Chief Economist Shang-Jin Wei, “$1.25 a day is not enough to maintain minimum welfare in many parts of our region. “A fuller understanding of poverty is needed to help policymakers develop effective approaches to address this daunting challenge,” he added.
