Pandemic and Anti-War Decades to Reduce Global Poverty

Tis COVID-19 pandemic Russia’s invasion of Ukraine has reversed three decades of progress in reducing poverty, according to the World Bank, which has warned that the global goal of eradicating extreme poverty by 2030 is now out of reach.

About 70 million people fell into extreme poverty in 2020, the Washington-based bank said in a report on Wednesday, the largest increase since monitoring began in 1990. According to current economic trends, it will remain more than 570 million, or about 7 % of the world’s population will live below this limit by the end of this decade.

“What matters to our mission is to increase extreme poverty and deteriorate shared prosperity inflation“Macroeconomic policy adjustments are needed to improve global capital allocation, enhance currency stability, reduce inflation, and resume growth in average incomes,” World Bank President David Malpass said.

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The report is the first to provide data on the World Bank’s new global extreme poverty line, which is $2.15 The day and reflects the latest global prices and the growing value of the US dollar.

To combat poverty and inequality, the World Bank is urging governments to move quickly on three fronts:

• Prefer targeted cash transfers over broad support
  • Half of all spending on energy subsidies in low- and middle-income economies goes to the richest 20% of the population that consumes the most energy, while more than 60% of cash transfers benefit the lowest 40% of earners, according to the report.
• Spend now for long-term growth
  • Prioritize public funds for high-return investments in education, research and development, and infrastructure projects.
• Increase local revenue without harming the poor
  • Consider property and carbon taxes, broadening the base of income taxes to individuals and businesses, and offering cash transfers to offset any increases in sales and excise taxes to reduce pain for low-income earners.

• Half of all spending on energy subsidies in low- and middle-income economies goes to the richest 20% of the population that consumes the most energy, while more than 60% of cash transfers benefit the lowest 40% of earners, according to the report.

• Prioritize public funds for high-return investments in education, research and development, and infrastructure projects.

• Consider property and carbon taxes, broadening the base of income taxes to individuals and businesses, and offering cash transfers to offset any increases in sales and excise taxes to reduce pain for low-income earners.

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