An estimated 60 million people may become extremely impoverished as a result of COVID-19 says World Bank
As the World Bank declared the emergency operations accounting for up to USD 160 billion for hundred developing nations to fight the pandemic, it went on to further reveal that over 60 million people could be pushed into poverty across the globe as a result of the pandemic.
World Bank President David Malpass stated, “The pandemic and shutdown of advanced economies could push as many as 60 million people into extreme poverty — erasing much of the recent progress made in poverty alleviation.”
“The World Bank Group has moved quickly and decisively to establish emergency response operations in 100 countries, with mechanisms that allow other donors to rapidly expand the programmes,” he added further.
The 100 countries are home to approximately 70 percent of the globe’s population. 39 out of these 100 nations are located in Sub-Saharan Africa. One-third of the total projects are running in impoverished and extremely conflicted nations like Afghanistan, Niger and Haiti.
“To return to growth, our goal must be rapid, flexible responses to tackle the health emergency, provide cash and other expandable support to protect the poor, maintain the private sector, and strengthen economic resilience and recovery”, Malpass told the reporters.
He went on to say, “This represents a significant milestone in the World Bank Group’s effort to deploy USD 160 billion over a 15-month period. So this is a milestone in the USD 160 billion that we have committed to.”
The projects will help these countries with the various health, economic and social distresses they are facing.
These programmes will help re-establish disturbed healthcare facilities and increase the availability of indispensable medical supplies. These programmes are tailored to permit other donors to easily help with the programmes.
Malpass also said, “The bilateral debt-service suspension being offered will free up crucial resources for IDA countries to fund emergency responses to COVID-19.”
“Nations should move quickly to substantially increase the transparency of all their governments’ financial commitments. This will increase the confidence in the investment climate and encourage more beneficial debt and investment in the future,” he further stated.