Poor families cannot afford healthcare and schooling but good harvests offer some hope, World Bank finds
The number of Zimbabweans in extreme poverty has reached 7.9 million as the pandemic has delivered another economic shock to the country.
According to the World Bank’s economic and social update report, almost half of Zimbabwe’s population fell into extreme poverty between 2011 and last year, with children bearing the brunt of the misery.
Continue reading...Slow Covid-19 vaccine progress in low-income countries will widen divisions between rich and poor nations
The global economy is set for the fastest recovery from recession for more than 80 years, but poor nations are at risk of falling further behind wealthy countries amid slow progress with the Covid-19 vaccine, the World Bank has said.
In its half-yearly outlook report, the Washington-based institution said the world economy was forecast to grow at 5.6% this year, in a sharp upgrade from previous estimates it made in January for growth of 4.1%.
Continue reading...World’s poorest nations saddled with ‘imprisoning’ debt, hampering responses to the pandemic, say activists protesting HSBC meeting
Activists at a demonstration outside the annual general meeting of HSBC in London have demanded the bank and other financial giants provide debt relief to African countries hit hard by the coronavirus pandemic.
In an attempt to highlight the role of private creditors in the debt crises of the world’s poorest countries, campaigners with “drop the debt” banners gathered outside HSBC’s AGM at the Southbank Centre.
Continue reading...For decades, scientists and economists have been making wagers about the outcome of human population growth. Now, more than ever, their speculations need to be taken seriously
In 2011, when the global population hit 7 billion, economist David Lam and demographer Stan Becker made a bet. Lam predicted food would get cheaper over the next decade, despite continuing population growth. Becker predicted that food prices would go up, because of the damage humans were doing to the planet, which meant that population growth would outstrip food supply. Becker won and, following his wishes, Lam has just written out a cheque for $194 to the Vermont-based nonprofit Population Media Center, which promotes population stabilisation internationally.
$194, about £140, equates to the amount by which a basket containing five food types – oils and fats, cereals, dairy, meat and sugar – and worth on average $1,000 in the decade to 2010, increased in price over the following decade, according to the UN Food and Agriculture Organization’s Food Price Index (FFPI) and allowing for inflation.
Continue reading...Ismail Ahmed, a refugee turned multimillionaire, says his country has had to battle ‘negative PR’
Aid agencies are hindering development and undermining efforts to attract investment in Somaliland, according to a former World Bank and UN official turned entrepreneur.
Ismail Ahmed, founder of the money-transfer company WorldRemit, claims Somaliland, his birthplace, has had to battle “negative PR” from aid agencies exaggerating their role to protect their interests. Somaliland declared itself a sovereign state independent of Somalia in 1991, but it is not recognised internationally.
Continue reading...Meetings of finance ministers follow change in US stance, with consensus growing on tackling tax avoidance
G20 finance ministers are exploring a global minimum tax on corporate profits, amid growing international consensus on tackling avoidance after the pandemic.
The virtual meetings between the group of 20 major industrial nations come after the US made the case for an international base rate this week, in a move by the Biden administration to end US resistance to international tax reforms.
Continue reading...Analysis: Buhari’s deputy wants to create jobs, feed pupils and cut red tape. Is he too high-profile for his critics?
The role of vice-president is one that John Adams, the first person in the US to hold the position, called “the most insignificant office that ever the invention of man contrived”.
Nigeria’s Patience Jonathan captured the situation in her sarcastic response to a journalist who asked about her husband, Goodluck Jonathan, when he was vice-president. She said: “He is in his office reading newspapers.”
Continue reading...Exclusive: Freedoms have been crushed and free speech impeded by governments around the world, says António Guterres
The world is facing a “pandemic of human rights abuses”, the UN secretary general António Guterres has said.
Authoritarian regimes had imposed drastic curbs on rights and freedoms and had used the virus as a pretext to restrict free speech and stifle dissent.
Continue reading...Millions forced to do without or pay for services as funding fails to adequately shore up healthcare systems, report finds
Millions of people in low-income countries have been forced to go without healthcare or have had to pay for it during the coronavirus pandemic, despite billions of pounds in emergency World Bank funding, research has found.
The World Bank’s $6bn (£4.45bn) emergency health fund to 71 countries in response to Covid-19 failed to strengthen health systems or remove financial barriers to using them, according to an Oxfam report published on Friday.
Continue reading...UN and World Bank call for structural changes to tackle the effects of the pandemic on children, who make up half the world’s poor
The world’s limited progress in tackling child poverty over recent years could be destroyed by the coronavirus pandemic, the UN and World Bank have warned.
“Slow-paced, unequally distributed” progress meant one in six children were living in poverty even before the pandemic, according to a joint study.
Continue reading...Zambia could become the first country to default on its debts amid the fallout from Covid-19, but it won’t be the last
Zambia is running out of money to pay its debts. It has asked bondholders for breathing space so that it can put a restructuring plan in place. The copper-rich African state is at risk of being the first country to default on its debts since the start of the coronavirus pandemic.
Not the last though. Zambia is the canary in the coalmine, a harbinger of a full-blown crisis that has been lurking in the background from the moment the seriousness of Covid-19 became apparent.
Continue reading...Initiative aims to ensure low-income countries are not frozen out by rich nations
The World Bank has announced plans for a $12bn (£9.3bn) initiative that will allow poor countries to purchase Covid-19 vaccines to treat up to 2 billion people as soon as effective drugs become available.
In an attempt to ensure that low-income countries are not frozen out by wealthy nations, the organisation is asking its key rich-nation shareholders to back a scheme that will disburse cash over the next 12 to 18 months.
Continue reading...President David Maplass says inequality has worsened as depression looms over poorer nations
The head of the World Bank has called for a more ambitious debt relief plan for poor countries after warning that the Covid-19 recession is turning into a depression in the most challenged parts of the globe.
In an interview with the Guardian, David Malpass raised the prospect of the first systematic write-off of debts since the 2005 Gleneagles agreement as he said fresh Bank figures due out next month would show an extra 100 million people had been pushed into poverty by the crisis.
Continue reading...Jubilee Debt Campaign reveals sharp rise in number of countries in distress since 2018
Developing nation debt has more than doubled in the past decade and left more than 50 countries facing a repayment crisis, according to a campaign group.
Data from the Jubilee Debt Campaign shows that even without taking full account of the impact of the coronavirus pandemic, there has been a sharp jump in the number of poor countries in debt distress since 2018.
Continue reading...António Guterres uses Mandela lecture to call for radical shake-up of IMF and World Bank in wake of coronavirus pandemic
The UN secretary general will today deliver one of his most stinging speeches to date, attacking the “myths, delusions and falsehoods” around international progress on equality.
In an unusually strongly worded speech, António Guterres urged major reform to the UN security council, the International Monetary Fund and the World Bank, to address systemic inequalities exposed by the coronavirus pandemic.
Continue reading...The World Bank’s flawed and misunderstood poverty benchmark has led to a deceptively positive picture and dangerous complacency
Poverty is suddenly all over the front page. As coronavirus ravages the globe, its wholly disproportionate impact on poor people and marginalised communities is inescapable. Hundreds of millions of people are being pushed into poverty and unemployment, with woeful support in most places, alongside a huge expansion in hunger, homelessness, and dangerous work.
How could the poverty narrative have turned on a dime? Until just a few months ago, many were celebrating the imminent end of poverty; now it’s everywhere. The explanation is simple. Over the past decade, world leaders, philanthropists and pundits have embraced a deceptively optimistic narrative about the world’s progress against poverty. It has been lauded as one of the “greatest human achievements”, a feat seen “never before in human history” and an “unprecedented” accomplishment. But the success story was always highly misleading.
Continue reading...Goal to eradicate poverty by 2030 ‘completely off track’, says outgoing special rapporteur, with Covid-19 likely to impoverish millions more
International institutions are losing the fight against global poverty despite “self congratulatory” messages to the contrary, according to the UN’s outgoing special rapporteur on extreme poverty and human rights.
In his final report in the post, the Australian academic Philip Alston warns that states and global organisations are “completely off track” to meet the goal of eradicating extreme poverty by 2030, with more people instead likely to become highly impoverished by new shocks, including coronavirus and existing challenges like the climate crisis.
Continue reading...Covid-19 unemployment expected to cause $110bn drop in remittances to developing world
The amount of money migrant workers send back to their home countries is expected to decrease by almost $110bn this year as the Covid 19 pandemic increases unemployment across the world.
Remittances to low- and middle-income countries (LMICs) are projected to fall by nearly 20% to $445bn (£360bn), “representing the loss of a crucial financial lifeline for many vulnerable households”, the World Bank said.
Continue reading...Australia urged to use its influence to push for the permanent cancellation of all debt due from vulnerable countries in 2020
Low-income countries need their debts for 2020 forgiven, alongside billions in emergency grants to survive the Covid-19 crisis, civil society groups around the world have said, arguing the viral pandemic will hit hardest the poorest people in the poorest countries.
More than 100 civil society organisations internationally have called on creditor nations to permanently cancel all debt repayments as the “fastest way to keep money in countries and free up resources to tackle the urgent health, social and economic crises resulting from the Covid-19 global pandemic”.
Continue reading...For more than two years the World Bank and the International Monetary Fund have warned that sub-Saharan Africa stands on the verge of a debt crisis. Ever since commodity prices began to fall in 2015, the public finances of nations stretching from Nigeria to Kenya and Chad to South Africa have deteriorated.
If China is the manufacturing centre of the world, Africa is its chief supplier of essential materials, from oil and copper to the rare-earth minerals used in mobile phones. As China’s manufacturing waned in the middle of the last decade, so did the crucial foreign earnings that keep African nations afloat.
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