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About 60 Million Africans Will Fall Into Extreme Poverty Due To COVID-19

On May 19, World Bank President David Malpass warned about 60 million people in the world will fall into extreme poverty, eradicate all achievements in poverty reduction over the past 3 years.

According to Mr. Malpass, the World Bank has granted money to aid programs in more than 100 countries, within the commitment of spending 160 billion USD in the next 15 months. It is also home to 70% of the world's population.

Although this is an important milestone, the World Bank also forecasts that world economic growth will drop by 5% this year, in which the poorest countries will be most seriously affected.

According to statistics, an estimated 60 million people will be pushed into extreme poverty, eradicating all achievements in poverty reduction over the past 3 years.

Since the outbreak of  COVID-19  , the WB has spent US $ 5.5 billion to support health, economic and social services systems in poor countries. However, President Malpass said that the WB's efforts were not enough, and urged countries to increase bilateral aid to poorer countries to ensure a stable recovery.

According to him, restoring the flow of deposits and tourism, which is the main source of income for developing countries, will be an important step in reopening the economy.

The call for debt relief of the Group of the world's leading developing and emerging countries (G20) for the least developed countries has received increasing support.

According to Malpass's chairman, 14 countries have agreed to reschedule debt, 23 countries are expected to propose implementation, while 17 other countries are seriously considering. He thinks these are quick, positive and welcome responses to the G20's commitment.

COVID-19 broke out, putting people in the world at risk of falling into poverty. The developing countries in the Middle East and Latin America are strongly affected. The poor working people in Africa are the most vulnerable and affected group. 

Not only are they at high risk for infection due to lack of COVID-19 prevention, but also at risk of losing their jobs and income. Even for the extremely poor, the real threat is that they may die of starvation before dying of disease, because even without COVID-19, about 45 million Africans had to rely on emergency food aid.

Strengthening debt relief programs as well as providing credits to support poor and developing countries is considered temporary "pain relief therapy". The International Monetary Fund (IMF) and World Bank (WB) are calling on member countries to provide additional funding to help the poor and most vulnerable countries. 

The World Bank has launched a support package of US $ 160 billion over the next 15 months to help poor countries in some areas to increase health resources and revive the economy.
"I am calling on the G20 leaders to allow the world's poorest countries to suspend all official bilateral credit payments, until the World Bank and the IMF fully evaluate their reconstruction and financial needs." 
According to him: 
"this is a difficult time for everyone, especially the poorest and most vulnerable."

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