This archive report was first published on 22 June 2020.
Published on June 22, 2020, a new research by King's College London and the Australian National University has sounded the alarm on a potential surge in global poverty. According to the study, the COVID-19 pandemic is reducing the income of the world's poorest by $500 million (Sh53 billion) a day.
The researchers warn that poverty is likely to increase dramatically in middle-income developing countries, where millions of people live just above the poverty line. Asian countries, such as Bangladesh, India, Indonesia, Pakistan, and the Philippines, are particularly vulnerable to the pandemic's economic shockwaves.
Professor Andy Sumner, a co-author of the report, emphasized the severity of the situation, stating, 'The pandemic is fast becoming an economic crisis for developing countries.'
With millions of people living precariously close to the poverty line, the economic shock of the pandemic is likely to push them into extreme poverty. In a worst-case scenario, the number of people in extreme poverty could rise from 700 million to 1.1 billion, according to the report.
Sumner warned that without urgent action, the crisis could set back progress on reducing global poverty by 20 or even 30 years. Researchers are calling for 'urgent global leadership' to address the crisis, but hopes are low after the Group of Seven meeting was postponed.
