However, investment in rural areas is generally inadequate, whether for agriculture, energy, telecommunications, transport, education or health. Many rural poor have no access to electricity and only limited access to primary and secondary education. Before people can make use of IT, they must have access to electricity and should be able to read and write. The challenge of improving productivity requires a wide range of efforts by both public and private sectors. Last but not least, there is the challenge of environmental degradation.
Poverty is both a contributor to, and a major consequence of, environmental degradation.
We have to understand the nexus between poverty reduction and environmental protection. Asia suffers from serious environmental degradation. The air and water in many parts of Asia are among the most polluted in the world. Population increase and rapid urbanization continue to impose a heavy toll on the environment. ADB is preparing its new environment policy that will focus on the environmental constraints inhibiting poverty reduction.