Poverty Reduction and Inclusion in Central and South Asia

The concept of poverty evolved over time moving beyond the confines of income to non-income dimensions consisting of the concept of vulnerability and inclusion. The present chapter is an attempt to briefly look into how poverty can be eradicated through addressing exclusion so that no one is left behind—the pledge of 2030 Agenda for Sustainable Development. The chapter is organized in five sections. Section 9.1 is an introductory one that sketches background for a much broader discussion in the latter sections. Section 9.2 presents the income and multidimensional poverty status which provides a basis for Sect. 9.3 to further explain the deprivation in water, energy, food, and their relationship with the multidimensional poverty. Section 9.4 advances social exclusion as the driver of inequality. Finally, some policy suggestions are advanced on how poverty can be addressed through promoting inclusion. The central message of the chapter is that Central and South Asia have been making significant progress on poverty reduction over time. However, vulnerability and inequality are rising in most countries of the two sub-regions. This is mainly due to exclusion. Therefore, measures should be adopted to promote inclusion and to share the gains fairly across all population groups. This requires reforming existing policies, introducing new policies and legislations, as well as implementing effectively redistributive policies with a reform in existing fiscal policy, wage policy, in addition to making social protection inclusive and shock responsive.