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Published August 5, 2026businesscementeconomy

How Asia Can Reverse Rising Inequality in its Cities

Asia and the Pacific is urbanizing faster than any other region. By 2050, its cities will be home to 3.4 billion people, up from 2.2 billion today – the equivalent of adding around two Delhi-sized cities every year

Source-backed market reading focused on the local industrial developments, project signals, and operating consequences that are actually worth tracking.

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Asia and the Pacific is urbanizing faster than any other region. By 2050, its cities will be home to 3.4 billion people, up from 2.2 billion today – the equivalent of adding around two Delhi-sized cities every year. The region’s future will depend on how this urban expansion is managed – whether it delivers shared prosperity and well-being or deepens exclusions and vulnerability.

Armida Salsiah Alisjahbana. Photo credit: ESCAP. Rising skylines across the region reflect expanding economic might and wealth. Yet deep urban inequality is growing in the shadows of these cityscapes, leaving cities socially divided, politically fragile and increasingly exposed to unsafe and illegal activity.

Today, nearly 700 million urban residents in Asia and the Pacific live in slums and informal settlements, while more than 65% of urban workers are in informal employment. Moreover, 2.3 billion people are breathing unsafe air, unmanaged waste is growing, and climate risks are escalating.

These pressures fall most heavily on those already underserved and disadvantaged – including migrants, persons with disabilities, low-income households headed by women, older persons, and youth without a steady income. Unequal cities are also fragile cities. When crises hit, those already struggling are often pushed deeper into poverty and despair, slowing recovery for everyone.

In turn, this can erode social cohesion and weaken trust in institutions, making it harder to cope with shocks. Recent geopolitical tensions and economic volatility have shown how swiftly global shocks can shake stability, with cities in the region often bearing the brunt.

The situation in the Middle East, for example, is affecting many urban communities through rising energy and food prices, disrupted supply chains, remittances and jobs. Across Asia and the Pacific, the impacts are acute: economic losses are estimated to range from $97-299 billion, fiscal pressures are mounting, small businesses are going under, and an estimated 8.8 million people are at risk of falling into poverty, according to estimates by UNDP.

Inflation hits low-income households hardest, workers in insecure jobs are often the first to lose livelihoods, and communities living on city margins with less access to overstretched services feel it most. In unequal urban spaces, even temporary disruptions can create lasting setbacks.

But this is not inevitable. Cities have the opportunity to shape a different future. Well governed cities are hubs of innovation, investment and opportunity that can drive more inclusive and resilient development. Our 2026 Asia-Pacific SDG Partnership Report highlights demonstrated practice and strategic choices that drive improvements to housing, basic services, jobs and environmental management, showing how urban resilience can be enhanced through connected approaches supported by policy and regulations, strategic investments and implementation capacity.

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How Asia Can Reverse Rising Inequality in its Cities

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Document: Astana Times RSS · Source: Astana Times RSS

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