The President of the World Bank warned Tuesday that the coronavirus crisis threatens 60 million people into ultimate poverty, expunging out the achievements made over the past three years. Millions of people have lost their jobs due to the pandemic, many poor people who were working as labours have left with their empty hands in such a bad situation.
David Malpass, the president of the World Bank said that the bank expects global economic growth to shrink by 5% this year as nations deal with the pandemic. This has already led to millions losing their jobs and businesses failing, with poorer countries feeling the brunt.”Millions of livelihoods have been destroyed and healthcare systems are under strain worldwide,” he said. He also stated that due to this pandemic it will push the poverty around 60 million people by which it will erase all the progress which was done in the last past three years to erase poverty.
The World Bank defines “extreme poverty” as living on less than $1.90 (£1.55) per person per day. It also stated that the World Bank is offering the loan and low-level interests to the poorer countries to help them out to fight with this situation as with the increasing poverty it will get tougher for the poorer countries to settle their economy and help out the poor people in the country. The World Bank worked with the International Monetary Fund (IMF) on a scheme to allow poorer countries to request debt relief on repayments of loans owed to G20 members until the end of this year.
It will be a very tough situation for the developing country to cope with this situation and the economic crisis as the pandemic has badly impacted all the sectors be it hospitality, online food startups, online shopping, and many more. Demand gets lower day by day of the items by which it has impacted the supply chains by which all these causes will create poverty in many countries and will also take time till many years from now to cope with this pandemic.
Last month, the WBG had announced source: the banking finance its plan to unveil a new multi-donor trust fund, to address public health crisis, and help developing countries to be better prepared for disease outbreaks. The new Health Emergency Preparedness and Response Multi-Donor Fund (HEPRF) will be additional assistance to the support of up to $160 billion of financing that it will provide for 15 months to support COVID-19 measures