Due to the corona virus outbreak Global extreme poverty is expected to rise in 2020 for the first time in over 20 years. An estimate of additional 88 million to 115 million people into extreme poverty, with the total rising to as many as 150 million by 2021, depending on the severity of the economic contraction is predicted. Extreme poverty, one living less than $1.90 a day is extreme poverty, between 9.1% and 9.4% of the world’s population will be affected in 2020, according to a report. If there was no pandemic, the poverty rate was expected to drop to 7.9% in 2020 that of 9.2% in 2017.
“The pandemic and global recession may cause over 1.4% of the world’s population to fall into extreme poverty. In order to reverse this serious setback to development progress and poverty reduction, countries will need to prepare for a different economy post-COVID, by allowing capital, labor, skills, and innovation to move into new businesses and sectors. World Bank Group support—across IBRD, IDA, IFC and MIGA—will help developing countries resume growth and respond to the health, social, and economic impacts of COVID-19 as they work toward a sustainable and inclusive recovery,” said World Bank Group President David Malpass. The countries with higher poverty rates will get affected the most whereas the middle-income countries will see significant increase in numbers of people below the extreme poverty line. About 82% of the total will be in middle-income countries, the report estimates. In addition to the international poverty line $1.90-per-day, the World Bank measures poverty lines of $3.20 and $5.50, reflecting national poverty lines in lower-middle-income and upper-middle-income countries. The report also measures poverty across a multidimensional spectrum that includes access to education and basic infrastructure. Less than a tenth of the world’s population lives on less than $1.90 a day, whereas quarter of the world’s population lives below the $3.20 line and more than 40% of the world’s population – almost 3.3 billion people – live below the $5.50 line.
The World Bank Group is taking broad and fast to help developing countries strengthen their pandemic response. The world bank says they are supporting public health interventions, working to ensure the flow of critical supplies and equipment, and helping the private sector continue to operate and sustain jobs. The Bank says it will deploy up to $160 billion in financial support over 15 months to help more than 100 countries protect the poor and vulnerable, support businesses, and bolster economic recovery. This includes $50 billion of new IDA resources through grants and highly concessional loans.
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