The Asian Development Bank forecasts around 100 million more people in Asia will fall into poverty next year as the impact of the US-led global economic crisis deepens, the ADB president said Monday.
Haruhiko Kuroda said the ADB projection of the rise in poverty figures was an "alarming setback to our vision of an Asia and Pacific free of poverty".
"Under our current projections, 60 million more people in the region will remain trapped in poverty this year, and yet another 100 million next year," he said.
"Had economic growth continued at pre-crisis levels, these individuals and families would have broken through the US$1.25-a-day poverty line and begun to experience a better quality of life.
"The poor and the vulnerable must remain our utmost concern," Kuroda said in his speech at the 42nd annual meeting of the ADB's board of governors, being held in Nusa Dua, Bali.
In light of this, the ADB will increase to $3.4 billion its assistance for low-income countries this year, as the global economic turmoil continues to hit the most vulnerable sectors of society.
"In low-income countries, we will increase our assistance by front-loading available Asian Development Fund *ADF* resources," Kuroda said.
"During these difficult times, it is critical that governments maintain and increase public expenditure programs for financing education, health services and public safety nets, especially for poor and vulnerable families.
"We cannot afford to lose the momentum in our efforts to achieve the Millennium Development Goals *MDGs* or to lose another generation to poor health and illiteracy," he warned.
The ADB estimates the economic growth of developing Asia will drop from last year's 6.1 percent to 3.4 percent in 2009.
To shore up economies and protect vulnerable citizens of Asian countries, the ADB has committed an additional $10 billion in loans to supplement its assistance over 2009 and 2010 to member countries in need of extra support.
Of that amount, $3 billion will be disbursed as counter-cyclical support facility (CSF) for fiscal stimulus.
The financial institution's poverty eradication policies have met with widespread criticism, in particular from NGOs.
Critics claim the ADB's development financing may worsen the crisis, as the bank's loan policies have previously politically and economically hurt countries receiving ADB loans.
Indonesian Finance Minister Sri Mulyani Indrawati said Asia should build more infrastructure as a long-term consideration to boost economies in the region, as it would also benefit the poor.
"The need to address the unacceptable gap in critical infrastructure investment is one such challenge," she said.
"The lack of modern, efficient infrastructure across the region is a hindrance to both economic growth and poverty reduction."
She added the private sector could not thrive in the absence of adequate and widely accessible transportation, telecommunications and public utility services.
"Nor can the poor participate in growth and its benefits without access to employment opportunities, health care and education," she warned.
Indonesian President Susilo Bambang Yudhoyono said Asia would remain the engine driving the global economy amid the current global crisis.
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