The SDGs in ASEAN+3:

Where have we been and where should we be

JOSE RAMON G. ALBERT, FRANCIS MARK A. QUIMBA AND
ABIGAIL E. ANDRADA
JUNE, 2022

Philippine Institute for Development Studies

Surian sa mga Pag-aaral Pangkaunlaran ng Pilipinas
Outline
 Introduction
 Trends in Poverty in ASEAN+3 Prior to Pandemic
o
How did ASEAN+3 Reduce Poverty?
o
Poverty Amid COVID-19
o
Projection on Extreme Poverty Rate
 Performance of ASEAN+3 on SDGs
o
People
o
Prosperity
o
Planet
o
Peace & Partnerships
 Summary and Ways Forward

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1. Introduction
 ASEAN+3 countries together with 180 other member states of
the United Nations committed to attaining the Sustainable
Development Goals (SDGs) by 2030
 The SDGs put forth a wider coverage than its predecessor Global
Goals Framework, the Millennium Development Goals
o
17 goals, 169 targets and 231 (unique) indicators
o
Five key themes: People, Prosperity, Planet, Peace, and Partnership
o
Overaching principle of “Leaving No One Behind”
 Even prior to the pandemic, the world was reportedly off track
in meeting the SDGs; COVID-19 put SDGs further off track.

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 2. Trends in Poverty in ASEAN+3
Growth in Population and Reduction in Extreme Poverty  Even as the population in ASEAN+3 has
Across ASEAN+3: 2001-2019
grown from 2.01 billion in 2001 to 2.27
billion in 2019, we have had much fewer
people living in extreme poverty prior to
the onset of COVID-19
o 18.7 million in extreme poverty, reduced from 574.0 million in 2001

 Even in 2019, the SDG1 target for zero

poverty was practically met (with the
poverty rate at less than 1 percent) in
ASEAN+3 far ahead of 2030 SDG deadline
o Progress in eradicating extreme poverty, partly because of PRC, but even
without PRC, ASEAN has made good progress.

Note: Extreme Poverty uses international poverty lines of $1.9 per person per day in PPP 2011 prices
Source: Povcalnet, World Bank; UN Population estimates

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2.1. How has ASEAN+3 reduced poverty?
 Reduction in poverty in a country is due to per capita growth
in an economy, or changes in income distribution, or
interaction (Datt and Ravallion 1990)
o
China’s poverty reduction experience: (1) broad-based economic
transformation to open new economic opportunities and raise
average incomes; (2) targeted support to disadvantaged areas , and
later to individual households.
o
Several ASEAN countries (IDN, PHL, and KHM) implemented large-
scale CCT programs targeted for poor families
o
Lessons learned in social assistance used in fiscal stimulus amid
COVID-19
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2.2. Poverty amid COVID-19
 Mobility restrictions meant to prevent the spread of
COVID-19 infections, had effects on jobs and incomes,
especially for daily wage-earners and entrepreneurs..
 ADB (2021) suggests that the rise in poverty across Asia and the
Pacific may even be much higher than expected as a result of the
pandemic if scenarios of greater inequality have resulted
 WB (Mahler et al. 2020): extreme poverty rate rose globally from
8.2% in 2019 to 8.6% in 2020 (number of extremely poor to rise
from 632 million to 665 million people)

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2.2. Poverty amid COVID-19 (cont’d)
Increase in Number of People in Poverty in ASEAN
 Now-casting estimates of WB member economies Using IMF Growth Projections
Resulting from COVID-19
ASEAN Increase in millions of people living
member below
state $1.90 per $3.20 per $5.50 per
day day day

Cambodia 0.04 0.11 0.27

Lao PDR 0.1 0.25 0.2
Indonesia 1.91 5.47 6.29
Malaysia 0 0 0.06
Myanmar 0.05 0.82 1.85
Philippines 0.77 2.63 2.74
Singapore 0 0.01 0.01
Thailand 0 0.14 1.88
Vietnam 0.19 0.58 0.97
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2.3. Projections on Extreme Poverty Rate
Trends in and Projections of Extreme Poverty Rates (in %)
 World Data Lab in its World across Select ASEAN member states: 20016-2030.
Poverty Clock (2022) suggests
that extreme poverty rates in
ASEAN member states have
risen in 2020, but projects a
recovery with countries
already having extreme
poverty below 3 percent,
and/or on track to reach the
zero poverty SDG1 target by
2030 (Source: World Poverty Clock, World Data Lab)

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3. SDG Performance by ASEAN+3
 ASEAN+3 is close to universal health coverage with SDG Indicator 3.8.1
(Coverage of Essential Health Services) averaging 82.7 (for an index with
100.0 being best), but disparities exist between CMLV countries (averaging
61.8), compared to ASEAN-6 (68.5) and the PlusThree (73.0) countries
 The proportion (in %) of learners at the end of primary school achieving at
least a minimum proficiency level for reading averages to 18.8 in CMLV,
compared to 62.7 for ASEAN-6. Meanwhile, for mathematics, the respective
proportions (in %) for CMLV and ASEAN-6 are 21.0 and 55.0, compared to
ROK’s 95.0.
 PHL and LAO best performing in reducing gender gaps; ASEAN+3 struggles
in attaining women’s equal participation and leadership in political and
public life, with the proportion (in %) of seats held by women in national
parliaments below a quarter for all but VNM (26.7), LAO (27.5), PHL (28.0)
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3. SDG Performance by ASEAN+3 (cont’d)
◦ As regards jobs agenda, only JPN (3.1%) and SGP (4.1%) having
less than 5 percent of their youth aged 15–24 Years not in
Education, Employment, or Training (NEET). Average youth NEET
rate in ASEAN-6 is 15.0% while that of CMLV is 19.4%.
◦ Regarding access to finance, proportion of adults 15+ with an
account at a bank or other financial institution or with a mobile-
money service provider averages 50.6% in ASEAN+3, as of 2017,
up from 41.9% in 2011. Access is at over 80 percent in JPN (98.2),
SGP (97.9), ROK (94.9), MYS (85.3) and PRC (80.2), but less than
30 percent in LAO (29.1), KHM (21.7) and MMR (26.0)
◦ Manufacturing Value-Added per capita (at constant 2015 $) averaging in ASEAN+3
economies at over 3K as of 2020, led by SGP (10,135), ROK (8,254), and JPN (6,745).
Nearly all ASEAN+3 countries have also increased Manufacturing Value-Added
per capita (at constant 2015 $), even among CMLV countries which more than
doubled its average of 318 in 2020 from 154 in 2010
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3. SDG Performance by ASEAN+3 (cont’d)
◦ Regarding SDG 13 (Climate Action), ASEAN+3 had over 300K deaths and
over 1.8 billion people affected from natural disasters in the period
from 2000 to 2022 (CRED n.d.) Overall cost of disasters for the period is
1.02 trillion US$. In the region, PRC alone had two-fifths of total deaths;
four-fifths of total affected, and about half of total costs.
◦ Modest improvement in coverage of protected sites except in KHM, IDN, VNM

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3. SDG Performance by ASEAN+3 (cont’d)
 Slight progress in reducing the number of intentional homicides
per 100,000 people across ASEAN+3 from an average of 2.1 in
2010 to 1.6 in 2015
 Access to and affordability of justice index by World Justice
Project averages in region from 0.485 in 2014, to 0.542 in 2020
(though still far from long-term target of 0.75)
 ASEAN+3 has also made some progress in Partnerships. The
spending on health and education by governments has risen
from an average across countries in the region of 4.6% of GDP in
2000 to 5.9% in 2019. Spending should be around 15 percent; so
far only Japan (12.4) and ROK (9.3) are spending more than 9
percent in recent years.

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4. Summary and Ways Forward
 Good
snapshot of
Progress by
ASEAN+3 on
the Global
Goals (and
areas that
require more
attention)

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4. Summary and Ways Forward (cont’d)
 While CMLV countries are making some headway, the gaps with
ASEAN+6 countries must be narrowed down, by way of more “ASEAN
help ASEAN” projects, supported by the PlusThree countries, which
are also ahead in SDG performance.
o
Specific areas of partnership of mutual benefit are in SDGs on the Planet such
as SDG 14 on Life below Water and SDG 15 on Life on Land, where most
countries, including the PlusThree countries have had stagnant performance.
o
Lao PDR will need extra assistance given its current performance.

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4. Summary and Ways Forward (cont’d)
 SDGs are mutually reinforcing and can be a means for the “great reset”.
o
The eradication of extreme poverty (SDG1) can be achieved faster with
investments in quality education (SDG4) that can empower the poor and other
vulnerable sectors to get better jobs (SDG8).
o
It is crucial to harness innovation and leverage technologies of the Fourth
Industrial Revolution in business processes and basic public service delivery. More
widespread digitalization and use of the internet can be mechanisms for wealth
creation for all, especially those likely to be left behind.
o
PlusThree countries can provide support to CMLV countries for improving the
access and quality of the internet, as well as enhancing digital skills of people.
Enhanced trade within ASEAN+3, not only in as far as goods and services, but in
also human resources, can harness sustainable consumption and production, aside
from increase economic opportunities.
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