UNDP recognizes 97% of Afghan population to plunge into poverty by 2022

The study which analyzed four potential scenarios of escalating intensity and isolation indicates that real GDP could contract by as much as 13.2 percent, leading to an increase in the poverty rate of up to 25 percentage points.

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UNDP recognises 97% of Afghan population to plunge into poverty by 2022

The war-torn Afghanistan which is experiencing its old shady days is expected to soon grapple under the curse of poverty. The United Nations Development Programme in one of its recent study reports has claimed that 97 per cent of Afghanistan’s population will be sinking below the poverty line by mid-2022 unless a serious response is taken immediately.

 

The study which analyzed four potential scenarios of escalating intensity and isolation indicates that real GDP could contract by as much as 13.2 percent, leading to an increase in the poverty rate of up to 25 percentage points.

“We are facing a full-on development collapse on top of humanitarian and economic crises,” said Kanni Wignaraja, UN Assistant Secretary-General and UNDP Director of the Regional Bureau for Asia and the Pacific. “Half of the population is already in need of humanitarian support.”

 

By applying the Computable General Equilibrium model for Afghanistan to simulate the scenarios, the study identified a worst-case scenario defined by a two-month interruption to trade with all major partners, a four percent decrease in capital spending efficiency, and disruptions in connectivity. 

 

In addition to a prolonged drought and the effects of the COVID-19 pandemic, Afghanistan is contending with the upheaval caused by the current political transition: frozen foreign reserves, collapsing public finances, increasing pressure on the banking system, and rising poverty.

 

In response, UNDP is proposing a package of interventions designed to help improve the immediate living conditions of the most vulnerable people and communities, prioritizing safeguarding women and girls’ rights.

The package focuses on essential services, local livelihoods, basic income and small infrastructure and aims to support close to nine million vulnerable people through a 24-month community development programme.

 

Under the plan, the most vulnerable would benefit from cash-for-work schemes, grants for small and medium enterprises, especially women-run businesses. Children, people with disabilities, and elderly citizens would receive temporary basic income through monthly cash transfers.

 

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UNDP recognizes 97% of Afghan population to plunge into poverty by 2022
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The study which analyzed four potential scenarios of escalating intensity and isolation indicates that real GDP could contract by as much as 13.2 percent, leading to an increase in the poverty rate of up to 25 percentage points.
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THE POLICY TIMES
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