Home Business amount Cost of living crisis leads to ‘staggering’ increase in extreme poverty -UNDP

Cost of living crisis leads to ‘staggering’ increase in extreme poverty -UNDP

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The global cost of living crisis is pushing an additional 71 million people in the world’s poorest countries into extreme poverty, a new report released Thursday by the United Nations Development Program (UNDP) warned.

UNDP Administrator Achim Steiner said an analysis of 159 developing countries showed that soaring prices for key commodities this year were already hitting parts of sub-Saharan Africa, the Balkans, Asia and Besides. UNDP called for tailored action. He sought direct cash payments to the most vulnerable and wanted wealthier countries to extend and expand the Debt Service Suspension Initiative (DSSI) they set up to help poor countries during the coronavirus pandemic. COVID-19.

“This cost of living crisis is pushing millions of people into poverty and even starvation with breathtaking speed,” Steiner said. “With this, the threat of increased social unrest is growing day by day.” Institutions such as the UN, World Bank and International Monetary Fund have a number of “poverty lines” – one for the poorest countries where people live on $1.90 or less a day. A $3.20 a day line for lower middle income economies and a $5.50 a day line in upper middle income countries.

“We project that the current cost of living crisis may have pushed more than 51 million additional people into extreme poverty at $1.90 a day, and another 20 million at $3.20 a day,” the report says. report, believing it would push the total globally. to just over 1.7 billion people. He added that government-targeted cash transfers would be more “equitable and cost-effective” than block subsidies on things like energy and food prices from which wealthier parts of society tend to benefit more. .

“Longer term, they are fueling inequality, further exacerbating the climate crisis and not mitigating the immediate blow,” said UNDP Strategic Policy Engagement Manager George Gray Molina. The past two years of the pandemic have also shown that these cash-strapped countries would need the support of the global community to fund these programs.

They could do that, Molina said, by extending the G20-led debt service suspension initiative https://www.worldbank.org/en/topic/debt/brief/covid-19-debt-service -suspension-initiative (DSSI) within two years and extend it to at least 85 countries out of the 73 currently eligible.

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