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Developing Asia’s Social Protection Response to the COVID-19 Crisis
The COVID-19 pandemic, and government responses to contain spread of the virus, have led to economic contraction across developing Asia and the Pacific. The region is expected to record virtually no GDP growth for the year and, in fact, may experience its lowest growth rate since 1961. The pandemic has killed thousands, wiped out millions of jobs, and exacerbated deprivation in the world’s most populous region.
World Bank researchers estimate that between 134 million and 172 million people in South Asia and East Asia and the Pacific will be plunged into poverty by the crisis. The ILO has reported that curtailment of business activity led to a drop of 6.5% in aggregate working hours in the first quarter of 2020 compared to the pre-crisis baseline (fourth quarter of 2019). In the second quarter of this year, aggregate working hours dropped 10% compared to the baseline.
Most workers in developing Asia and the Pacific perform jobs in the informal economy. They lack basic social protection, like unemployment insurance, job training, health insurance, and pensions. They and their families generally do not receive benefits for the elderly, children, and persons with disabilities.
Spending on social protection in most middle-income Asian and Pacific countries remains below 3% of GDP per…
