By Lalit K Jha
“The pandemic and global recession may cause over 1.4 per cent of world’s population to fall into extreme poverty,” World Bank Group President David Malpass said
THE World Bank on Wednesday warned that by 2021, as many as 150 million people are likely to be in extreme poverty because of the coronavirus pandemic and countries will have to prepare for a “different economy” post-COVID by allowing capital, labour, skills and innovation to move into new businesses and sectors.
The COVID-19 pandemic is estimated to push an additional 88 million to 115 million people into extreme poverty this year, with the total rising to as many as 150 million by 2021, depending on the severity of the economic contraction, according to the Washington-based global lender. This would represent a regression to the rate of 9.2 per cent in 2017, according to the biennial Poverty and Shared Prosperity Report. Had the pandemic not convulsed the globe, the poverty rate would have been expected to drop to 7.9 per cent in 2020, it said. “The pandemic and global recession may cause over 1.4 per cent of the world’s population to fall into extreme poverty,” World Bank Group President David Malpass said.
“In order to reverse this serious setback to development progress and poverty reduction, countries will need to prepare for a different economy post-COVID, by allowing capital, labour, skills and innovation to move into new businesses and sectors,” he said. A number of middle-income countries will see significant numbers of people slip below extreme poverty line, report said.