COVID-19 can push 60 million people into extreme poverty

Source World Bank

Source World Bank

"Our estimate is that up to 60 million people will be pushed into extreme poverty, erasing all the progress made in poverty alleviation in the past three years, and our forecasts indicate a deep recession", Malpass said.

"We can not afford to sit idly by and hope that this most viral and deadly disease bypasses Africa, home to numerous world's poorest countries who simply are not able to cope with such a pandemic, "said the United Nations High Commissioner for Human Rights, Michelle". He said his emergency relief efforts have already reached 100 developing countries, which are home to 70% of the world's population. He said, "The World Bank Group has made rapid strides and started emergency aid operations in 100 countries".

On announcing this figures to the general public, the President of the World Bank Group, David Malpass, informed the global community that the progress made in the last three years in the poverty alleviation will be erased by the COVID-19 crisis.

The bank added that it would support the beneficiary countries with grants, loans and equity investments which would be supplemented by the suspension of bilateral debt service, as endorsed by its governors.

The warning suggests deepening the pessimism among economists about the extent and duration of the fallout from what the bank has described as an "unprecedented crisis".

Migrant workers in different parts of the country forced to return to their homes on foot
Migrant workers in different parts of the country forced to return to their homes on foot

"Nations should move quickly to substantially increase the transparency of all their governments' financial commitments. This will increase the confidence in the investment climate".

The World Bank stated last month that it anticipated individuals in below-Saharan Africa would certainly experience one of the most.

They also highlighted the need for China's investment in the poorest countries for the collective goal to tackle the COVID-19 disaster and welcomed the Chinese President Xi Jinping's commitment speech on the investment that was delivered on May 18, 2020, at the World Health Assembly (WHA).

"Strengthening health systems, monitoring, and prevention, particularly in low-income countries and in fragile and conflict-affected situations". It said that disbursements already underway include a 20-million-U.S. -dollar IDA grant for Haiti, 20 million US dollars to Senegal and 35 million USA dollars to Ghana. Malpos said that this program would strengthen the health system and help in the purchase of life-saving medical equipment.

On its support for businesses, World Bank said, "The International Finance Corporation (IFC) continues to implement its $8 billion fast-track financing facility, which aims to keep companies in business and preserve jobs". These safety nets will need to be augmented with safe, direct food distribution, accompanied by key information on nutrition, social distancing, and hygiene. Close to 300 clients have requested support, and the facility may be oversubscribed. Currently, 39 of the World Bank's 100 target nations exist, and also at the very least 23 million citizens of the area are projected to be going to severe destitution due to the coronavirus episode.

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