LONDON (AFP) – Fallout from the Ukraine battle, rising inequality and Covid-19 might drive greater than 1 / 4 of a billion folks into extreme poverty this 12 months, Oxfam forecast Tuesday (April 12).
The British-based charity issued the warning in a report revealed earlier than subsequent week’s annual conferences of the World Bank and International Monetary Fund.
“New Oxfam estimates show that 263 million more people could be pushed into extreme poverty in 2022, due to the combined impact of Covid-19, inequality and food and energy price inflation – accelerated by the war in Ukraine,” Oxfam stated.
“Poorer countries face looming debt crises and the purchasing power of wages is depressed, while corporate profits soar and billionaire wealth reaches unprecedented levels.”
The World Bank had beforehand estimated that 198 million folks confronted extreme poverty – outlined as residing on lower than US$1.90 (S$2.59) per day – because of the Covid pandemic.
Another 65 million individuals are in danger resulting from fallout from Russia’s Ukraine invasion – together with hovering power and meals costs.
The complete quantity of folks in extreme poverty worldwide might attain 860 million.
Oxfam known as for a right away world financial rescue plan to deal with the huge downside.
“G-20 leaders, the IMF and World Bank, together with all leaders, must act,” it declared. “They must protect people from the crisis’ harsh impacts.”
The organisation urged debt cancellation and extra assist for the world’s poorest nations, whereas calling for larger taxation on the rich.
“It’s clear that a herculean response is needed to tackle the catastrophe facing humanity,” stated Ms Katy Chakrabortty, the charity’s head of coverage.
“Multiple world crises are inflicting distress for thousands and thousands of folks and simply shifting assist round to every disaster will not be sufficient.
“Low-income countries need debt cancellation to be able to invest in social safety nets and progressive taxation on the wealthiest is needed now more than ever to provide huge funds for protecting the most vulnerable.”