Asian Development Bank - Food Security and Poverty in Asia and the Pacific: Key Challenges and Policy Issues

2012 Asian Development Bank

All rights reserved. Published in 2012.

Printed in Philippines.

ISBN 978-92-9092-666-5 (Print), 978-92-9092-667-2 (PDF)

Publication Stock No. RPT124594

Cataloging-In-Publication Data

Asian Development Bank.

Food security and poverty in Asia and the Pacific: Key challenges and policy issues.

Mandaluyong City, Philippines: Asian Development Bank, 2012.

1. Food security. 2. Poverty. 3. Asia and the Pacific. I. Asian Development Bank.

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Many of the worlds fastest growing economies today are located in Asia. Ironically, however, Asia still is home to two-thirds of the worlds poor and more than 60% of the worlds undernourished population. Across the globe, poverty is the single most common cause of food insecurity. With strong growth, developing countries in Asia and the Pacific have made progress in reducing poverty and hunger. Nevertheless, the progress in food security has been nearly stagnant since the mid 1990s and the absolute number of undernourished people in the region has increased as a result of rapid population growth. Adding to this, the global food and economic crises of 20072008 have pushed tens of millions more people into food insecurity. High and volatile food prices persist around the world, including in Asia and the Pacific. While food price spikes and volatility have adverse impacts on all segments of the population, these impacts are more acutely felt by the poor, who spend up to 70% of their income on food items. Moreover, higher and more volatile food prices decrease poor peoples ability to move out of poverty in the longer term as higher food bills crowd out expenditures on other basic needs such as health care and education.

This special study explores the web of issues linking food security and poverty, looking into the ways instability in food markets impacts the poor. The study also previews the ongoing research on food security initiated by the Asian Development Bank (ADB) in partnership with the Canadian International Development Agency (CIDA) and the University of British Columbia (UBC). This joint research effort aims to deepen the understanding of food security in Asia and the Pacific and articulate key policy challenges and opportunities.

This study was prepared by ADBs Economics and Research Department (ERD), under the overall guidance of Assistant Chief Economist Cyn-Young Park, Economic Analysis and Operations Support Division (EREA) in ERD, in consultation with Paul Samson of CIDA and Julie Wagemakers of UBC. The study was written by Cyn-Young Park, Hyun Hwa Son, and Emmanuel A. San Andres with significant inputs from EREA staff and staff consultants, including Muhammad Ehsan Khan, Kee-Young Nam, Suphachol Suphachalasai, and Liborio Cabanilla. Special thanks are due to Jill Gale de Villa and Guy Sacerdoti for editorial assistance.

Changyong Rhee

Chief Economist

Asian Development Bank

Food security should be at the heart of any discussion on poverty. Food security and poverty reduction are inseparable. Although food security alone does not eradicate poverty, any strategy to fight poverty must be integrated with policies to ensure food security and to offer the best chance of reducing mass poverty and hunger.

Around the globe, but mostly in Asia, rising populations and changing consumption patterns are raising global demand for food. As of 2012, Asia remains the most populous continent, with 4.1 billion peopleover 60% of the worlds 7.0 billion total. Moreover, the United Nations estimates show the global population increasing by more than 2 billion people between 2012 and 2050with Asia accounting for more than half of that increase. Coupled with Asias economic growth and increasing affluence, consumption patterns are shifting from cereal grains toward more costly proteins and vegetables.

Despite rapid economic growth and poverty reduction, hunger still afflicts many people in Asia. Between 1990 and 2009, the proportion of people in Asia living on less than $1.25 a day dropped from 50% to 22%. However, the proportion of undernourished children only declined from 26% in 1990 to 18% in 2009. South Asia continues to be a hotspot for food insecurity and inequity, with undernutrition among children decreasing only slightly, from 64% in 1995 to 60% in 2009 for the poorest 20% of the population; this contrasts with the large decrease from 37% in 1995 to 26% in 2009 among the richest 20%. Hunger is also most dire in South Asia, where nearly 60% of Asias hungry, 65% of its extremely poor, and 81% of its underweight children live.