14.7 C
New York
Monday, October 19, 2020
Home Business Extreme poverty set for first rise since 1998, World Bank warns |...

Extreme poverty set for first rise since 1998, World Bank warns | Daily’s Flash

People in Cambodia  Extreme poverty set for first rise since 1998, World Bank warns | Daily’s Flash  111482281 whatsubject  Extreme poverty set for first rise since 1998, World Bank warns | Daily’s Flash  111482281 whatsubject

Image copyright
Getty Images

Extreme poverty is set to rise this year for the first time in more than two decades, with coronavirus expected to push up to 115 million people into that category, the World Bank has said.

The pandemic is compounding the forces of conflict and climate change, which were already slowing poverty reduction, the bank said.

By 2021, this could rise to as many as 150 million, it added.

Extreme poverty is defined as living on less than $1.90 (£1.50) a day.

The projected increase would be the first since 1998, when the Asian financial crisis shook the global economy.

  • Global economy ‘will suffer for years to come’

Before the pandemic struck, the extreme poverty rate was expected to drop to 7.9% in 2020.

But now it is likely to affect between 9.1% and 9.4% of the world’s population this year, according to the bank’s biennial Poverty and Shared Prosperity Report.

At the other end of the scale, billionaires have seen their fortunes hit record highs during the pandemic, with top executives from technology and industry earning the most.

The world’s richest saw their wealth climb 27.5% to $10.2tn (£7.9tn) from April to July this year, according to a report from Swiss bank UBS.

‘Serious setback’

Since 2013, the World Bank has been working towards the target of having no more than 3% of the world’s population living on just $1.90 a day by 2030.

However, it now says that goal will be beyond reach without “swift, significant and substantial policy action”.

The World Bank report found that many of the new poor would be in countries that already have high poverty rates, with 82% of the total expected in what are classed as middle-income countries.

The bank said progress in reducing global poverty was already slowing even before the Covid-19 crisis.

Between 2015 and 2017, 52 million people rose out of poverty, but the rate of reduction over that period was less than half a percentage point a year.

This was less rapid than in the years between 1990 and 2015, when global poverty had dropped at the rate of about one percentage point a year.

“The pandemic and global recession may cause over 1.4% of the world’s population to fall into extreme poverty,” said World Bank Group president David Malpass.

He said that to reverse this “serious setback”, countries would need to prepare for a different economy post-Covid, by allowing capital, labour, skills and innovation to move into new businesses and sectors.

However, he pledged that World Bank support would be available to developing countries “as they work toward a sustainable and inclusive recovery”.

The Washington-based lender is offering grants and low-interest loans worth $160bn to help more than 100 poorer countries tackle the crisis.

Join Our Telegram Chanell

Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisment -
Extreme poverty set for first rise since 1998, World Bank warns | Daily’s Flash newspaper rec300 2x

Most Popular

Ilkeston Town v Hartlepool United: FA Cup qualifier live on BBC Sport| Daily’s Flash

The first round proper of the FA Cup will start on 7 NovemberHartlepool United's trip to Ilkeston Town in the FA Cup fourth qualifying...

Sen. Ernst has ‘full support’ of Iowa Farm Bureau after fake email says otherwise | Daily’s Flash

The Iowa Farm Bureau Federation reiterated its support for Republican Sen. Joni Ernst on Sunday after an anonymous Twitter account said otherwise.  A fake...

Elliott Gould reflects on past marriage to Barbra Streisand: ‘She became more important than us’ | Daily’s Flash

Elliott Gould knows exactly why his marriage to Barbra Streisand didn’t last.After eight years and a son, the most popular couple of the 1960s decided...

How to save money working from home this winter | Daily’s Flash

If you do work from home here's how you could cut your tax bill. Join our telegram channel Source link DONATE TOWARDS OUR CAUSE

Recent Comments