Coronavirus Could Increase Global Poverty by up to Half a Billion
The economic fallout from coronavirus could increase global poverty by up to half a billion, Oxfam has warned.
In its new report ‘Dignity Not Destitution’, Oxfam has presented fresh analysis which suggests between six and eight percent of the global population could be forced into poverty as governments across the globe shut down entire economies to manage the spread of coronavirus.
The Prime Minister of Pakistan has also expressed his deep concern regarding the looming threat of hunger and poverty
If we shut down the cities … we will save [people] from corona at one end, but they will die from hungerImran Khan, Prime Minister of Pakistan
The report says the potential impact of the virus poses a real challenge to the United Nations Sustainable Development Goal of ending poverty by 2030.
These findings come ahead of key meetings of the World Bank, International Monetary Fund, and G20 finance ministers next week.
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Our findings point towards the importance of a dramatic expansion of social safety nets in developing countries as soon as possible and – more broadly – much greater attention to the impact of COVID in developing countries and what the international community can do to helpProfessor Andy Sumner, King’s College London.
“Global poverty could increase for the first time since 1990 and, depending on the poverty line, such increase could represent a reversal of approximately a decade in the world’s progress in reducing poverty“, says another paper released by the United Nations University World Institute for Development Economics Research projects
By the time the coronavirus pandemic is over half of the world’s population could be living in poverty. East Asia and the Pacific could make up to about 40% of the new poor with about one third in both Sub-Saharan Africa and South Asia.
More than 100 global organisations have already called for waiving off this years debt payments for developing countries. This would make available up to $25bn in cash to support their economies.