COVID-19 Fallout: 60 Million People Face Extreme Poverty, Says World Bank

World Bank Group President David Malpass the COVID-19 pandemic impact will push 60 million people worldwide into ‘extreme poverty’.

Speaking at a media briefing, Malpass said the health and economic impacts that the COVID-19 pandemic and shut down have inflicted on developing countries are severe. “Our estimate is that up to 60 million people will be pushed into extreme poverty – that erases all the progress made in poverty alleviation in the past three years. And our forecasts indicate deep recession this year as much as minus five percent recession for the global economy. Families have lost loved ones, millions of jobs and livelihoods are lost, the health systems are under enormous strain worldwide”, the World Bank chief said.

The World Bank defines extreme poverty as living on $1.90 or less per person per day.

According to him, from the beginning what the World Bank Group’s goal was to provide rapid, flexible responses to developing countries. “That’s a way we can protect the poorest, by providing cash and other expandable support on debt, also to maintain the private sector and bolster the economic recovery”, said Malpass.

“Today, we are announcing that the World Bank Group is now financing emergency programs in 100 countries –that’s home to 70% of the world’s population”, Malpass remarked.

This represents a significant milestone in the World Bank Group’s effort to deploy $160 billion dollars over a 15-month period, he said.

The current #COVID19 crisis could erase recent progress made in poverty alleviation. @DavidMalpassWBG lays out @WorldBank’s plan to help countries get on the path to economic resilience and recovery: https://t.co/OKkGcNJR3E pic.twitter.com/r308SO1mkU

— World Bank (@WorldBank) May 19, 2020

 

“The programs are tailored to the countries to effectively respond to the health, economic and social shocks that that they are facing. The programs will reinforce healthcare systems; and also help procure vital life-saving medical equipment and supplies. And these programs contain mechanisms that allow other donors to rapidly expand the program. And we invite that, said Malpass.

“Added to this, there are the billions of dollars that were fast-tracked by the IFC and MIGA, the parts of the World Bank, to help maintain the private sector. The programs are going to work to mitigate corruption.

“Transparency is a key step in creating resilience and recovery after the crisis, that’s transparency in terms of government debt, in terms of government investment, in terms of contracts and expenditures and tax collection. Those are all critical in having a strong recovery on the other side of the crisis” said Malpass.