In this article, we take a look at the 25 most impoverished countries in Asia. If you would like to skip our detailed analysis of the Asian economy, you can directly go to the 5 Most Impoverished Countries in Asia.
State of Poverty in Asia
The Asian continent has managed to significantly combat poverty over the past few decades. According to a report by UNU Wider, based on the $3.20 poverty line, Asia’s poverty rate was 73.65% in 1965, from where it dropped to 10% by 2014. Through rapid industrialization, nation-building strategies, and economic growth, Asian countries managed to pull millions out of the shackles of poverty. However, this positive growth was also accompanied by an increase in inequality, as the Gini Coefficient for Asia rose 10% from 1965 to 2006, after which it slowed down due to the 2008 financial crisis. Wealth inequality was most prominent in East Asian countries such as China. According to UNU, 248.4 million more individuals could have made it out of poverty if it had not been for this drastic income inequality.
Before COVID-19, Asia was leading the global pursuit of poverty reduction; however, the pandemic set the region back tenfold. Today, the Asian Development Bank estimates that 155.2 million people in the Asia Pacific region live in a condition of poverty. This value makes up 3.9% of the region’s total population. The cost-of-living crisis brought on by the COVID-19 pandemic is massively responsible for this number, which would have been less by 67.8 million without it. Even though Asian economies are projected to continue progressing in the upcoming years, ADB predicts that by 2030, 30.3% of the region’s total population will be ‘economically vulnerable’. This refers to people who live between $3.65 to $6.85 per day. This is why ADB considers that poverty alleviation continues to be a vital agenda point for Asian states.
Trends in Poverty Reduction
Considering the exemplary work done by Asian states in the domain of poverty reduction, OECD mapped out other trends relevant to poverty reduction from the period of 2000-2019. According to OECD data, the rate of poverty decline was the highest for countries that had robust GDP growth, such as states like Armenia. In the indicated time period, GDP grew by almost 6% in Armenia and poverty decreased by 25%. However, there were also countries which did not perform as expected. Take Lao PDR, for example, where GDP growth was more than 5%, but poverty reduction was less than 10%.
A correlation was also noted between the percentage of the population living below the poverty line and the number of deaths by communicable diseases and maternal, prenatal, and nutrition conditions. During 2000-2019, India had the highest poverty in the Asia Pacific region (20%), and it also had the highest number of deaths due to communicable diseases, which accounted for 25% of total deaths. On the other hand, countries such as the Maldives and Kazakhstan had some of the lowest poverty rates as well as a low number of deaths due to prenatal conditions or communicable diseases.
The Asian Market
As millions in the general Asian population grapple with extreme poverty, the region is also lined with major industry players boosting its economy. Samsung Electronics Co, Ltd. (KRX:005930) is the world’s second-biggest smartphone manufacturer. According to an analysis by the Korea Times, Samsung Electronics Co, Ltd. (KRX:005930) still makes up for 20% of South Korea’s GDP, which is almost one-fifth. Owing to its strong market position in the Asian economy, Samsung Electronics Co, Ltd. (KRX:005930) has also contributed to global goals by partnering with organizations such as UNDP.
In 2019, Samsung Electronics Co, Ltd. (KRX:005930) partnered with UNDP to release the Samsung Global Goals app, through which users can engage with the SDGs in several ways, including sending donations. On December 25, 2022, the company announced it had reached 10 million donations through its Galaxy community and the SGG app. SDG Goal 1: No Poverty is currently the second most-donated cause on the app.
ITC Ltd. (NSE:ITC) is one of India’s top private-sector conglomerates, and it is present in several industries such as consumer goods, hotels, and agriculture technology. ITC Ltd. (NSE:ITC) began as a cigarette manufacturer, but over time, the company has strategically pivoted towards the fast-moving consumer goods industry.
Through its work, ITC Ltd. (NSE:ITC) has contributed to several social development programs that played a direct or indirect role in poverty alleviation. The company regularly enables farmers to increase their income and the productivity of their farms through its agricultural development programs. Results in the villages of Bihar and Eastern Uttar Pradesh increased the crop yield by two times while decreasing the cost by 32%.
Lastly, Alibaba Group Holding Limited (HKG:9988) is one of the biggest retail companies in China. Alibaba Group Holding Limited (HKG:9988) is also one of the most prolific companies that have invested in anti-poverty efforts in the country. In 2021, Alibaba Group Holding Limited (HKG:9988) announced that it would spend $15.5 billion on the various prosperity goals set by President Xi Jinping, which cover areas of job creation and care for vulnerable groups.
25 Most Impoverished Countries in Asia
Our Methodology
We began our research by first selecting the 30 poorest Asian countries by GDP per capita. Our next step was to evaluate the absolute situation of poverty and wealth distribution in these states. For this article, we define an impoverished country as one with a high poverty rate, a high poverty gap, and a high level of wealth inequality. Building on these metrics, we looked into the poverty headcount ratio at the national poverty line, the poverty gap at $2.15 a day, and the Gini Index for all 30 countries.
The poverty headcount ratio evaluates the percentage of the population living below the poverty line set by a state. The poverty gap evaluates the average income of an individual living below the international poverty line, which is currently set at $2.15. Lastly, the Gini Index measures the spread of income inequality in a country. An index value of 0 would signify perfect equality, whereas a value of 100 indicates perfect inequality.
We computed an average of the aforementioned four metrics. The result is ordered in descending order of the calculated averages, with the smallest average rank representing the most impoverished country. We have also included the absolute values of all our indicators for each country for more context. Certain values are missing due to inherent gaps in World Bank data owing to the limited availability of data. Tie-breaking, wherever required, was done on the basis of the poverty headcount.
We sourced the GDP per capita, the poverty headcount ratio at the national poverty line, the poverty gap at $2.15 a day, and the Gini Index, from the World Bank, for the latest available year, for all our countries.
Note that some countries on this list may not be considered ‘impoverished’ in the typical sense, i.e., their economy and business industry may be thriving. However, they will have more than 3.9% of their population living below the poverty line, which grants them a space on this list. Based on this methodology, here are the 25 most impoverished countries in Asia:
25 Most Impoverished Countries in Asia
25. Jordan
GDP per Capita (2022): $4,311
Poverty Headcount (2018): 15.7%
Poverty Gap (2010): 0%
Gini Index Value (2010): 33.7
Average Rank: 19.75
Jordan ranks 25th on our list of the poorest countries in Asia, with 15.7% of its population below the national poverty line. However, according to the UNDP, the country adopted its first Poverty Reduction Strategy in 2002, the social programs in which have been successful in decreasing overall poverty.
24. Vietnam
GDP per Capita (2022): $4,163.5
Poverty Headcount (2020): 4.8%
Poverty Gap (2020): 0.1%
Gini Index Value (2020): 36.8
Average Rank: 19.5
According to UNICEF data, only 58% of Vietnam’s population has access to safely managed drinking water services, whereas only 49% has access to basic sanitation services. This makes Vietnam one of the poorest countries in Asia.
23. Lebanon
GDP per Capita (2021): $4,136.1
Poverty Headcount (2011): 27.4%
Poverty Gap (2011): 0%
Gini Index Value (2011): 31.8
Average Rank: 18
According to a Human Rights Watch survey from 2022, 56.2% of households said they could not pay for food in the previous year, whereas 55.2% said the same about education. Less than 5% of Lebanese households receive government assistance to deal with the rising living crisis.
22. Georgia
GDP per Capita (2022): $6,675
Poverty Headcount (2022): 15.6%
Poverty Gap (2021): 1.3%
Gini Index Value (2021): 34.2
Average Rank: 17.25
Even though Georgia ranks on our list of Asia’s most impoverished countries, poverty has been on a decline in recent years, as per a report by the UNDP. Urban poverty has fallen faster, particularly by 5.7%.
21. Mongolia
GDP per Capita (2022): $5,045.5
Poverty Headcount (2020): 27.8%
Poverty Gap (2018): 0.1%
Gini Index Value (2018): 32.7
Average Rank: 17.25
The UNICEF reports that only 39% of Mongolia’s population has access to safely managed drinking water services, making Mongolia one of Asia’s most impoverished countries.
20. Indonesia
GDP per Capita (2022): $4,788
Poverty Headcount (2022): 9.5%
Poverty Gap (2022): 0.3%
Gini Index Value (2022): 37.9
Average Rank: 16.5
While the poverty headcount in Indonesia is only 9.5%, the World Bank reports that one-third of Indonesians are economically insecure, which means any economic or geographical shock can push them into poverty right away.
19. Sri Lanka
GDP per Capita (2022): $3,354.4
Poverty Headcount (2019): 14.3%
Poverty Gap (2019): 0.1%
Gini Index Value (2019): 37.7
Average Rank: 15.5
Even though Sri Lanka has a low poverty headcount as compared to several other Asian states, its high wealth inequality is one of the reasons that make it the 19th country on our list of the most impoverished countries in Asia.
18. West Bank and Gaza (Palestinian Territories)
GDP per Capita (2022): $3,789.3
Poverty Headcount (2016): 29.2%
Poverty Gap (2016): 0.1%
Gini Index Value (2016): 33.7
Average Rank: 15.25
Poverty in the Palestinian territories has remained high for several years, with the situation being worse off in Gaza. The area is also struggling with war currently, which places further pressure on the economic structure of the region.
17. Cambodia
GDP per Capita (2022): $1,759.6
Poverty Headcount (2012): 17.7%
Poverty Gap: N/A
Gini Index Value: N/A
Average Rank: 14
UNICEF reports that Cambodia has an under-five mortality rate of 24 deaths per 1,000 children, whereas only 15% of children aged 36-59 months attend an early childhood education program. Thus, Cambodia is one of the most impoverished countries in Asia.
16. Bangladesh
GDP per Capita (2022): $2,688.3
Poverty Headcount (2022): 18.7%
Poverty Gap (2022): 1.7%
Gini Index Value (2022): 31.8
Average Rank: 14
Bangladesh has a population of 172 million, 18.7% of whom live below the national poverty line, while the average impoverished individual earns 1.7% less than $2.15 per day.
15. Pakistan
GDP per Capita (2022): $1,588.9
Poverty Headcount (2018): 21.9%
Poverty Gap (2018): 0.6%
Gini Index Value (2018): 29.6
Average Rank: 13.5
While 21.9% of Pakistan’s own population lives below the poverty, Pakistan is also one of the world’s top refugee-hosting countries, according to UNHCR data. The country currently has around 2.1 million refugees, which can further strain an already weakening economy.
14. Kyrgyz Republic
GDP per Capita (2022): $1,655.1
Poverty Headcount (2021): 33.3%
Poverty Gap (2020): 0.2%
Gini Index Value (2020): 29
Average Rank: 13.25
The UNICEF reports that every third child in Kyrgyzstan lives in poverty, which adds up to 750,000 children. The country spends merely 0.5% of its GDP on providing assistance to these poverty-struck children.
13. Myanmar
GDP per Capita (2022): $1,149.2
Poverty Headcount (2017): 24.8%
Poverty Gap (2017): 0.3%
Gini Index Value (2017): 30.7
Average Rank: 12.75
Myanmar has a GDP per capita of $1,149, which is one of the lowest in Asia. This is why it’s one of the most impoverished Asian countries. The average individual below the poverty line earns 0.3% less than $2.15 daily.
12. Iran
GDP per Capita (2022): $4,669.6
Poverty Headcount: N/A
Poverty Gap (2019): 0.2%
Gini Index Value (2019): 40.9
Average Rank: 12.6
Although the World Bank doesn’t list the poverty headcount for Iran, the country itself reported that it had a poverty rate of 30.4% in 2021. With a Gini Index of 40.9, the country also has a high wealth inequality.
11. Philippines
GDP per Capita (2022): $3,498.5
Poverty Headcount (2021) 18.1%
Poverty Gap (2021): 0.5%
Gini Index Value (2021): 40.7
Average Rank: 12.25
According to UNICEF data, the Philippines has an under-five mortality rate of 27.5 deaths per 1,000 births. Furthermore, only 48% of the population can access safely managed drinking water services.
10. Turkmenistan
GDP per Capita (2022): $8,792.5
Poverty Headcount: N/A
Poverty Gap (1998): 14.7%
Gini Index Value (1998): 40.8
Average Rank: 11.3
Official data on poverty measures in Turkmenistan is almost non-existent. The UNICEF estimates that the country has an under-five mortality rate of 40.4 per 1,000 live births.
9. Uzbekistan
GDP per Capita (2022): $2,255.2
Poverty Headcount (2013): 14.1%
Poverty Gap (2003): 37.8%
Gini Index Value (2003): 35.3
Average Rank: 11.25
Uzbekistan has the lowest poverty gap in Asia and the second lowest globally. This means that the average impoverished individual in the country earns less than 37.8% less than $2.15 a day.
8. India
GDP per Capita (2022): $2,410.9
Poverty Headcount (2011): 21.9%
Poverty Gap (2021): 2.2%
Gini Index Value (2021): 34.2
Average Rank: 10.75
Only 52% of Indian individuals have access to safely managed sanitation services, which is a gap faced by several impoverished countries. India ranks 8th on our list of the poorest countries in Asia.
7. Timor-Leste
GDP per Capita (2022): $2,389.3
Poverty Headcount (2014): 41.8%
Poverty Gap (2014): 5.1%
Gini Index Value (2014): 28.7
Average Rank: 10.75
Timor-Leste has a poverty headcount of 41.8%, which is one of the highest in Asia. The average impoverished individual earns 5.1% less than $2.15 a day.
6. Lao PDR
GDP per Capita (2022): $2,054.4
Poverty Headcount (2018): 18.3%
Poverty Gap (2018): 1.2%
Gini Index Value (2018): 38.8
Average Rank: 10.25
Even though Lao PDR continues to be one of the most impoverished countries in Asia, the state has made progress in reducing poverty. The World Bank reported that the country met the MDG target of reducing extreme poverty by half.
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Disclaimer: None. 25 Most Impoverished Countries in Asia is originally published on Insider Monkey.
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