Chapter 2: Current State Analysis 2.1 Asia-Pacific: Regional context and geopolitical realities The Asia-Pacific region typically refers to the geographic area that includes the sub-regions of East and North-East Asia, South-East Asia, South Asia, South-West Asia, Central Asia, and the Pacific. Although the number of countries in the region varies depending on the definitional context, the United Nations Economic and Social Commission for Asia and the Pacific lists 58 countries within this grouping (UNESCAP, 2025a). This large and diverse region is home to 60 per cent of the world’s population and includes four of the world’s top five most populous countries: China, India, Indonesia, and Pakistan(UNFPA, 2025a). Since 2000, the region’s Gross Domestic Product(GDP) has risen from USD 9 trillion to USD 40 trillion, accounting for 35 per cent of the world’s GDP in 2025(IMF, 2025). Much of this growth has been driven by China, alongside other emerging and developing economies in Asia, particularly the ten member states of ASEAN. Despite rapid economic growth in the region, stark disparities remain both among and within countries. The average income inequality in Asia—as measured by the Gini coefficient—is 44.7, placing it among the highest globally. South Asia(50.5) and East Asia(41.5) are the most unequal subregions, while Central Asia and the Pacific are comparatively better off(UNDP, 2022). Wealth inequality is even more pronounced: the top 10 per cent of the population controls about half of the total national income. In South Asia, this share increases to around 56 per cent, while in East Asia it falls to just under 50 per cent. The highest wealth disparities are seen in China, India, Myanmar, Sri Lanka, and Thailand(UNDP, 2024b). The Asia-Pacific region has roughly 500 million people living in multidimensional poverty, accounting for half of the global total(UNESCAP, 2024b). Labour market disparities deepen these divides. About two-thirds of the global informal workforce—1.3 billion people—are based in this region. In South Asia, 87 per cent of workers are in the informal sector, compared to 50 per cent in East Asia(UNDP, 2024b). According to ILO estimates, the region’s share of income going to labour is below the global average, reducing workers’ capacity to save and invest, thereby deepening inequality. Corruption, weak tax policies, and a lack of effective social security systems further exacerbate these issues. Educational inequality remains deeply rooted: even before COVID-19, one in four young people(144 million) in the region were not engaged in education, employment, or training. Young women face even greater disadvantages, being three times more likely than men to be excluded from these opportunities(UNESCAP, 2024b). 18 Friedrich-Ebert-Stiftung e.V.