Syed Tahir Rashdi;
Between 1980 and 2016, the average income of the bottom 50 percent of earners nearly doubled, as this group captured 12% of growth in global GDP. The number of those living on less than $1.90 a day the world bank’s threshold for “extreme poverty” has been dropped by more than half since 1990, from nearly two billion to around 700 million. Never before in human history have so much people been lifted out of poverty so quickly. But this Economic fallout from Coronavirus pandemic has changed everything negatively. This Global outbreak COVID-19 first emarged in Wuhan, China during December, 2019 has spread throughout the globe infecting 200 countries. This Novel Pandemic Covid-19 has left socio-economic impacts across the world. As up to 25 million jobs could be lost globally & It is also taking its toll on the world, causing deaths, illnesses and economic despair. But how is the deadly virus impacting global poverty? Here we’ll argue that it is pushing about 40-60 million people into extreme poverty, with our best estimate being 49 million. Charity group Oxfam warned recession caused by Covid-19 could push an extra half a billion people in poverty – 8 persent of the world population – unless urgent action is taken. Conducted by King’s College London and Australian National University, the research gauged the short-term impacts of containing the Coronavirus on global monetary poverty based on World Bank poverty lines of $1.90, $3.20 and $5.50 a day. Nowcasting global poverty is not an easy task. It requires assumptions about how to forecast growth and how such growth will impact the poor, along with other complications such as how to calculate poverty for countries with outdated data or without data altogether. All of this goes to say that estimating how much global poverty will increase because of COVID-19 is challenging and comes with a lot of uncertainty. Global poverty levels would increase under all three scenarios for the first time since 1990 according to the analysis with up to decade of progress lost globally. The impact is set to be even worse in some hard-hit parts of the world such as North Africa, Sub-saharan Africa and The Middle East where up to 30 years of progress could be wiped. “The devastating economic fallout of the pandemic is being felt across the globe. But for poor people in poor countries who are already struggling to survive there are almost no safety nets to stop them falling into poverty. G20 Finance Ministers, the IMF and world Bank must give developing countries an immediate cash injection to help them Bail out poor and vulnerable communities. They must cancel all developing Country debt payments for 2020 and encourage others creditors to do the same, and issue at least US$1 trillion of Special Drawing Rights.”
