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Study warns that poverty is rising to more than 1 billion due to the virus

by Admin

К : AP | London |

Published : 12. June 2020 7:16:50

Global Poverty, Coronavirus Pandemic, Global Poverty, Rising Global Poverty, Global News, Indian Express

Asian countries such as Bangladesh, India, Indonesia, Pakistan and the Philippines are considered particularly vulnerable to the economic shocks of the pandemic, which led to a sharp decline in activity.

Global poverty will outstrip another billion people as a result of the coronavirus pandemic, which reduces the income of the poorest by $500 million a day, according to a new study released Friday.

A study by King’s College London and the Australian National University shows a sharp increase in poverty in middle-income developing countries, where millions of people live just above the poverty line.

Asian countries such as Bangladesh, India, Indonesia, Pakistan and the Philippines are considered particularly vulnerable to the economic turmoil of the pandemic with a sharp decline in activity.

The pandemic is rapidly turning into an economic crisis for developing countries, said Andy Sumner, professor of international development at King’s College London and co-author of the report.

With millions of people living just above the poverty line, they are in a precarious situation as the economic shock of the pandemic continues. At worst, according to a report by the World Institute for Development Economics Research at the University of the United Nations, the number of people living in extreme poverty, i.e. those earning less than USD 1.90 per day, will rise from around 700 million to 1.1 billion.

Without action, this crisis could wipe out the progress made in reducing world poverty in 20 or even 30 years, according to Sumner.

Scientists are urgently calling for global leadership to combat the crisis. Expectations remain high, however, following the postponement of the meeting of the Group of Seven World Leaders from 10 to 12 November. June on the occasion of the departure of President Donald Trump to Camp David should take place, downstairs. Trump plans to hold an extensive meeting with leaders from Russia, Australia, South Korea and India in September. The question of how many development issues will be addressed at this summit has not yet been answered.

Mr Sumner said that three actions should be given priority. First, a Global Crisis Response Commission for Poverty Reduction and COVID-19, led by a prominent world leader, is needed to determine how much resources are needed and what rich countries can do to help.

Secondly, he said that resources should be mobilised quickly by widening the current debt service gap that the International Monetary Fund provides to all developing countries and by freezing World Bank debt repayments at least until the end of 2020, possibly 2021.

He explained that some developing countries, once the crisis is over, will need full debt restructuring or relief, if not unavoidable.  And thirdly, he said, countries in a deadlocked situation need to use the money to strengthen and expand social safety nets.

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