According to a new World Bank report, the world is unlikely to fulfill the objective of ending extreme poverty by 2030.
According to the World Bank’s Poverty and Shared Prosperity report, worldwide progress in decreasing extreme poverty has stalled.
“The conflict in Ukraine threatens to exacerbate the worst setback to global poverty-reduction efforts since 1990,” it stated.
According to the world agency, the pandemic would push nearly 70 million people into extreme poverty by 2020, the largest one-year increase since global poverty tracking began in 1990.
“As a result, an estimated 719 million people will be living on less than USD2.15 a day by the end of 2020,” the report stated.
According to the estimate, around 600 million people, predominantly in Sub-Saharan Africa, will still be living on less than USD2.15 per day by 2030.
It stated that in the absence of fiscal action, the average poverty rate in emerging nations might be 2.4 points higher, emphasizing that robust fiscal policy measures made a “notable difference” in limiting the impact of the pandemic on poverty.
World Bank President David Malpass stated in response to the study, “Progress in decreasing extreme poverty has virtually stalled in tandem with reduced global economic development.”
“Macroeconomic policies must be adjusted to improve global capital allocation, promote currency stability, lower inflation, and restart growth in median income. The existing quo entails slower global growth, higher interest rates, increased risk aversion, and fragility in many emerging countries,” he continued.