4 Reasons Why Reforestation Is Great for Rural Growth

Tapping into forest restoration can help rural areas that typically lag cities in jobs, growth, public services, and infrastructure. Photo by Ahmed Jubair

Restoring forests can create good rural jobs, reduce disaster risks, and secure water supplies—while helping close the gap between booming cities and left behind countrysides.

Forest restoration in Asia and the Pacific is no longer only the work of conservationists; it’s fast becoming central to economic development and how communities cope with increased flooding, heat, and other impacts from changing weather. A major bonus is that it can also create significant employment and bring social benefits to rural areas.

The region’s economic success story is well known, but that big picture hides a deep divide between rural and urban areas. Take almost any modern city in developing Asia and it will stand in stark contrast to the surrounding countryside that’s often struggling with unemployment, poverty, and a lack of basic services. 

Many development initiatives struggle to take root beyond booming cities. Poor infrastructure, difficult geography, limited local capacity, and scarce financing often hold back rural projects. While there are many national initiatives to correct this imbalance, the region would benefit from a more unified strategy that taps into its extraordinary concentration of forests and other natural resources. 

One way to do this is to shift from exploiting forests and landscapes to managing them in a way that allows them to regenerate. New data from the Asian Development Bank’s Basic Statistics 2026 provides a snapshot of the top 30 countries in terms of forest cover as a share of their land area. 

With more than 500 million hectares of degraded land across the region, large-scale programs show what is possible. For example, the Returning Farmland to Forest Program of the People’s Republic of China (PRC) has helped raise forest cover from about 10% 70 years ago to around 25% today. 

The rest of the region is stepping up too: the RESULT (Restoring and Sustaining Landscapes Together) Asia-Pacific program was established in 2024 to support 20 countries in restoring 100 million hectares of degraded forests, agricultural land, and urban areas. 

Forest Area as a Proportion of Total Land Area, Top 30 ADB Economies, 2025​
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Here are four reasons why nurturing forests and other natural resources can support rural communities and narrow the urban–rural divide in many of the region’s developing economies. 

First, when done well, reforestation is a powerful way to create steady, decent jobs in rural areas, ranging from planning to planting, maintenance to security, and accounting to marketing. Successful agroforestry and forest restoration create a mix of unskilled, semi-skilled, and whiter-collar jobs, which are often missing in many rural communities. 

A good example is in Viet Nam, where small farmers have played a central role in reforestation. Ambitious tree-planting and restoration programs have expanded forest cover from around 9.4 million hectares in 1990 to an estimated 14.8 million hectares in 2025. This included policy reforms that allowed households to use government-owned forests through land-use agreements, devolving forest management to locals. Later programs funded by the government and international organizations gave cash payments to communities for managing and protecting forests in their local area. About five million smallholders now manage somewhere between 40% and 70% of the country’s newer wood plantations. 

Initiatives like this can deliver large social and economic gains and contribute to reducing rural poverty. By contrast, when local needs and rights are not prioritized in large reforestation projects, forests may be restored but at the expense of local people’s lands and livelihoods.

Second, forests are not only important for prosperity; they also play a key role in managing weather-related risks in rural areas. Many rural communities face frequent typhoons, floods, landslides, and storm surges. Reintroducing forests, mangroves, and other forms of tree and shrub cover provides natural barriers that help shield exposed communities.

Third, new forests and grasslands also combat desertification by stabilizing soil, restoring water cycles, and creating vegetation cover that prevents erosion. The PRC, India, and Mongolia all have large initiatives to combat desertification and land degradation. Mongolia has committed 1% of its annual gross domestic product to its “One Billion Trees” program, with more than 41 million trees planted between 2021 and 2024. Partnerships between the government and international organizations have created forest nurseries near planting areas to raise tree survival rates. Community members frequently receive training to operate these nurseries, providing jobs for residents. This program shows how restored forest cover supports local communities and contributes to national development. 

Fourth, reforestation is critical for water security, another cornerstone of rural development. Forests act as natural sponges: they store, slow, filter, and regulate water flows, making water supplies for farming and daily use more reliable. These functions help buffer communities from erratic and changing weather, with more frequent droughts and damaging downpours. 

Beyond these economic and environmental benefits, restoring indigenous trees and plants can help people reconnect with their surroundings and traditional land‑based practices, while also providing spaces for recreation, reflection, and better mental health for all—including people living in cities.

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Stefan Schipper

Principal Statistician, Data Division, Economic Research and Development Impact Department

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Sean Crowley

Communications Consultant

Reproduced from adb.org.

ADB, Bank of Tianjin Sign Loan to Support Health Care and Elderly Care Development in the PRC

Photo: Wikipedia

BEIJING, PEOPLE’S REPUBLIC OF CHINA (21 May 2026) — The Asian Development Bank (ADB) and the Bank of Tianjin Co., Ltd (BOT) signed a $50 million (in yuan equivalent) loan agreement for health care and elderly care finance in Tianjin and other cities where BOT operates in the People’s Republic of China (PRC).

The project will support health care and elderly care service providers by funding their capital investments in facilities, equipment, and IT systems, and meeting their permanent working capital needs. It will also promote financial innovation through knowledge-sharing and expand inclusive health care for women and elderly care financial services through a targeted action plan.

“Addressing the growing demand for quality health care and elderly care services is critical as the PRC undergoes rapid demographic transition,” said ADB Country Director for the PRC Asif Cheema. “Working with BOT as a finance and knowledge partner, the project aims to address this market gap by combining funding with capacity building through ADB’s strong collaboration with finance and health sector groups under its Strategy 2030.”

The PRC is facing rapid population aging, with the elderly becoming increasingly vulnerable to chronic illnesses and communicable diseases. The issue is particularly complex in Tianjin, where more than a quarter of the population was aged over 60 at the end of 2023. As the population ages and lifestyles become less active, chronic and serious diseases become more common, raising pressure on the health care system.

Tianjin’s role as an established port city with long-standing international trade links heightens risks to imported communicable diseases and pandemics. Limited access to financing also constrains health care and elderly care providers across the country. Addressing these challenges requires greater investment in health care and elderly care systems and stronger digital financial services. Local banks, including city and rural commercial banks, are well positioned to provide support.

This is ADB’s first private sector loan to a commercial bank for health care and elderly care finance; and BOT’s first long-term borrowing from an international financial institution. BOT will also mobilize $25 million (in yuan equivalent) from its own resources to complement the ADB financing. The project will help diversify BOT’s funding sources and help improve access to digital finance for borrowers. Through support from ADB’s knowledge work, more health care and elderly care facilities will be enrolled in BOT’s digital financial services; and retail digital banking services will be expanded to cover more customers, including women.

BOT, listed on the Hong Kong Stock Exchange in 2016, is a city commercial bank (CCB) headquartered in Tianjin. As a leading regional bank, BOT provides a comprehensive range of banking and related financial services. It primarily operates through 157 branches in Tianjin and 73 branches in Beijing, Hebei, Shandong, Shanghai, and Sichuan, with more than 6,600 staff, which is aligned with the bank’s strategy to support the Beijing–Tianjin–Hebei integrated economic region and promote sustainable finance. In 2022, it became the first CCB supporting the Task Force on Climate-Related Financial Disclosures (TCFD) in the country.

ADB is a leading multilateral development bank supporting sustainable, inclusive, and resilient growth across Asia and the Pacific. Working with its members and partners to solve complex challenges together, ADB harnesses innovative financial tools and strategic partnerships to transform lives, build quality infrastructure, and safeguard our planet. Founded in 1966, ADB is owned by 69 members—50 from the region.

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Driving Change Workshop in the PRC Concludes with Key Lessons on Sustainable Finance

Speakers and presenting participants of the regional workshop, “Driving Change: Lessons from Breakthroughs in Innovative and Sustainable Finance in the PRC,” held in Beijing. The photo includes experts from the People’s Republic of China and representatives from Azerbaijan, Georgia, Indonesia, Mongolia, the Philippines, Thailand, Uzbekistan, and Viet Nam, who shared experiences and insights on advancing sustainable finance.

BEIJING, PEOPLE’S REPUBLIC OF CHINA (23-24 October 2025) – The two-day regional workshop, Driving Change: Lessons from Breakthroughs in Innovative and Sustainable Finance in the PRC, brought together participants from Azerbaijan, Georgia, Indonesia, Mongolia, the Philippines, Thailand, Uzbekistan, Viet Nam, and the People’s Republic of China. Organized by the Asian Development Bank (ADB) in Beijing, the event convened government officials, regulators, and financial institutions to exchange practical experiences in advancing green and transition finance.

Across eight sessions, participants discussed China’s experience in developing policy frameworks, taxonomies, and innovative financial instruments such as sustainability-linked loans and transition finance. They also examined disclosure practices, digital tools, and sectoral approaches—including agriculture and manufacturing—that can inform strategies in other countries.

Participants learned from China’s pioneering pilots and shared their own policy and market experiences, offering perspectives on how sustainable finance principles can be adapted to different economic contexts. Discussions underscored three key messages: credibility and clear standards are essential to build investor trust, solutions must reflect each country’s unique realities, and regional collaboration can help scale successful innovations.

The workshop concluded with a shared recognition that sustained cooperation and knowledge exchange are critical to accelerating the region’s transition toward sustainable and inclusive growth.

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Regional Public Goods Can be a Powerhouse for Development

In an increasingly interconnected world, regional public goods (RPGs) provide a compelling framework for countries to cooperate for sustainable development. RPGs include a wide array of assets and services to promote economic growth, social welfare, and environmental sustainability.

Public goods can be placed in three main categories: economic public goods, social public goods, and environmental public goods. 

Economic public goods are those that are directly related to economic growth and industrialization, such as infrastructure for transportation, communication, energy, and irrigation systems. Economic institutions, regulatory frameworks, and government macroeconomic policies can also be included. 

Social public goods include legal systems, public health and epidemic prevention, social safety nets, public security, museums, public libraries, and parks.

Environmental public goods include environmental protection systems and policies, ecological restoration, renewable energy development, and climate change mitigation and adaptation programs. 

Education, scientific research, technology, innovation, and all kinds of knowledge are all linked to these public goods.

Developing countries share common interests and needs for public goods because they face similar problems at similar stages of development. Often, they have common goals and priorities for economic development, such as poverty relief, industrialization, increasing productivity, urbanization, and reduction of income disparities. Here, cooperation between developing countries may create important regional public goods for joint development. 

For example, regional and international transportation as well as communication networks improve connectivity among countries, enlarge the market for all, and in turn, improve the efficiency of national infrastructure systems. 

Regional trade and investment agreements facilitate economic development and cooperation of the countries involved in the treaty. The Regional Comprehensive Economic Partnership treaty is an example of how all parties involved can benefit through regional cooperation.

Meanwhile, regional public health systems and epidemic prevention mechanisms are key to minimizing the pandemic risks for people in the region and beyond.

Regional networks can also play an important role in natural disaster management and mitigation as well as cross-border environment protection and ecological preservation (one example would be ADB’s Regional Flyway Initiative).

The Paris Agreement is a global public good that aims to tackle the challenge of climate change. However, its benefits can truly be realized through regional cooperation. A specific area for regional collaboration is energy transition through which governments can utilize latest technologies to reduce carbon emissions. 

Global public goods can also be promoted through regional cooperation on cyber security and Artificial Intelligence (AI). 

The provision of global public goods requires coordination between regional and global institutions to facilitate project designs, financing, and technical assistance. This facilitation can be done through a regional mechanism or within an international framework. 

Knowledge sharing is imperative for joint development. Particularly essential is knowledge of recent development practices and experience in all countries, including policies implemented, technologies applied, and business models used and the problems that arise when facing new conditions. People from diverse backgrounds will benefit immensely through such knowledge exchanges. Every developing country, regardless of its size and levels of productivity, can offer some good experiences or lessons for others to learn and benefit from. A useful example is the influence of Bangladesh’s microfinance model.

The People’s Republic of China (PRC)’s role in regional development

The PRC is still a developing country, in terms of both gross national income per capita and industrial productivity. However, as a large economy, the PRC has a special responsibility to contribute to regional development.

Four important initiatives for economic development of the region deserve mention. 

The first pertains to regional connectivity infrastructure (road, railway, ports, airports and telecommunications), which the PRC has facilitated. Better connectivity means greater market access and higher productivity, particularly for inland countries. The PRC-Europe rail route has greatly stabilized global supply chains in the wake of conflict disrupting vital shipping lanes in the Red Sea.

The second involves industrial development facilities, such as industrial parks. In recent years, the PRC has engaged in developing “two parks in two countries” mechanisms with Indonesia, Malaysia, Thailand, and Viet Nam, which provide mutual common goods for the companies from “the other country.”  

The third initiative is the technology and business model for energy transition. Knowledge sharing in this regard will not only contribute to the battle against climate change, but also provide new ways to help countries increase their capacity for energy generation for the next stage of development. 

The fourth initiative is cross-border environment protection and ecological system preservation for sustainable development. It is in the common interest of all countries in our region and beyond to prevent damage of our ecological systems.  

Priorities for developing countries

In principle, all public goods are good and beneficial for everyone, one way or another.  However, for countries at different stages of development, their priorities may be different. 

For low-income countries, the most urgent need is more economic public goods related to their industrialization and economic structural upgrade, such as physical infrastructure and industrial facilities. Economic growth will enable these countries to finance their social and environmental projects through their own revenues and participate effectively in the provision of regional and global public goods.

Countries with higher incomes and productivity can help provide social and environmental public goods, such as on ecological restoration and climate change.

Financial resources from donor countries should be directed toward economic public goods, rather social and environmental projects in low-income developing countries. This will prevent developing countries from becoming reliant on international aid for long periods and instead, encourage them to develop their own financial strength to pay for social and environmental goods. “Infrastructure deficits” in developing countries should be interpreted as being part of broader deficits of economic public goods. 

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Fan Gang

Director, National Economic Research Institute

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Latest List of Best Poverty Reduction Case Studies Announced

Individuals and representatives of organizations that submitted case studies during the fifth call of the Global Solicitation on Best Poverty Reduction Practices and other attendees pose with award certificates at the 2024 International Seminar on Global Poverty Reduction Partnerships held in Beijing on Oct. 31, 2024.

On 31 Oct, 105 exemplary case studies from the fifth call of the Global Solicitation on Best Poverty Reduction Practices were celebrated at the 2024 International Seminar on Global Poverty Reduction Partnerships in Beijing.  During this event, the sixth round of solicitation was also launched.

Initiated in 2018 by the Asian Development Bank (ADB), the China Internet Information Center (CIIC), the International Poverty Reduction Center in China (IPRCC), the World Bank (WB), and three Rome-based UN agencies — the Food and Agriculture Organization of the United Nations (FAO), the International Fund for Agricultural Development (IFAD), and the World Food Programme (WFP) — the Global Solicitation on Best Poverty Reduction Practices aims to inspire individuals and organizations worldwide to submit case studies that can serve as valuable reference materials. This initiative also seeks to foster innovative global partnerships in poverty alleviation, leveraging the strengths of various stakeholders.

The sixth round of the Global Solicitation on Best Poverty Reduction Practices is launched at the ceremony.

The fifth call for submissions was launched in November 2023, generating 1,012 entries from 37 countries and regions, including Laos, Cambodia, Myanmar, Pakistan, Jordan, Spain, Germany, Greece, Ethiopia, Rwanda, Sao Tome and Principe, Burundi, the Kingdom of Tonga, Fiji and China. From these entries, the seven host institutions selected 105 best practices that are sustainable, operable, replicable, and based on practical scenarios. These selected ones provide valuable models and implementation strategies for those dedicated to poverty reduction efforts worldwide.

Reproduced from China.org.

© 2026 Regional Knowledge Sharing Initiative. The views expressed on this website are those of the authors and presenters and do not necessarily reflect the views and policies of the Asian Development Bank (ADB), its Board of Governors, or the governments they represent. ADB does not guarantee the accuracy of the data in any documents and materials posted on this website and accepts no responsibility for any consequence of their use. By making any designation of or reference to a particular territory or geographic area, or by using the term “country” in any documents posted on this website, ADB does not intend to make any judgments as to the legal or other status of any territory or area.