The World Bank uses #poverty indices based on a USD 1.90 / day threshold (2011 Price point) to indicate the level of poverty in a country. This indices puts some 10% (in 2015) of the world’s population below this poverty line which when extrapolated to today (2020 April) indicates that some 730 million persons are impacted. These figures for all intense and purposes are sad in the level of impact but based on the data, show improvements over the past years.
Photo by Mumtahina Rahman on Pexels.com
However, the advent of COVID-19 has created a new conundrum in that budget allocations that were set to fight poverty in the various countries are now to be diverted to emergency health matters. Added to which the loss of low income jobs at rates never seen since world wars, the crash of 2008 and 9/11 has added to the problem and reversed the poverty fight gains.
Southern #Africa which the World Bank data also indicates accounts for some 247 million persons (or 33% of the world’s poor)is set for a great setback. It is estimated that the COVID-19 job losses will possibly double this number as the various #lockdowns in the countries take effect and impact disposable incomes.
Urgent action will be needed to help the affected persons and the informal economies ramp up quickly. This action will be essential to immediately impact households and ensure that dignity is restored. Steps such as providing relief from unsustainable debt payments and filtering this down to the household debt, could go a long way into restoring some semblance of normalcy.
The conversation continues https://www.rdjconsulting.co.za
Comments