by Andrea Shalal
WASHINGTON (Reuters) – Related to the COVID-19 Pandemic and the American War Shock The World Bank said in a new report released Wednesday that Ukraine means the world is unlikely to achieve its long-term goal of ending extreme poverty by 2030.
COVID-19 report says Pandemic marks historic turning point after decades of poverty reduction, increasing 60 million 2020 people in extreme poverty.
This means that 719 million people – or about 9.3% of the world’s population – live on just $2. One day, ongoing wars, slowing economic growth in China and rising food and energy prices could further hamper efforts to reduce poverty, it said.
Barring sharply declining growth gains, estimated 574 million people, or about 7% of the world’s population, to 2030 The same income levels will remain at the grim outlook and calls for major policy changes to boost growth and help
“As global growth slows, progress in reducing extreme poverty has largely stalled,” he said in a statement Inflation, currency devaluation and wider overlapping crises are blamed for the rise in extreme poverty.
Failure to reduce poverty in developing countries will have far-reaching implications for the world’s broader ability to address climate change, says Indermit Gill, chief economist at the World Bank , and could unleash massive new waves of immigration.
This will also limit growth in advanced economies, as extreme poverty rates prevent these often densely populated developing countries from becoming larger consumers of goods in global markets.
“If you care about prosperity in advanced economies, sooner or later you want these countries to have big markets, like India, China,” he said. “You also want these countries to grow so that they actually start to be a source of demand, not just supply.”
To change course, the World Bank said countries should cooperate more and avoid widespread subsidies, focusing on and implementing measures such as property taxes and carbon taxes to increase incomes without harming the poorest.
Pandemic, the poorest clearly bear the heaviest price. During the pandemic, the poorest19% lost an average of 4% of their income, making the richest19 suffered twice the % of losses, the World Bank said.
Report shows government spending and emergency support have helped avert a greater rise in poverty rates, but economic recovery has been uneven, developing economies with fewer resources Less expenditure, less realization.
Extreme poverty is now concentrated in sub-Saharan Africa, with a poverty rate of about 19%, accounting for 60%.