World Bank warns of rising extreme poverty in conflict-affected economies
Extreme poverty is reaching alarming levels in the 39 conflict-affected economies around the world, which are experiencing setbacks and hindering their sustainable development, according to the World Bank
A recent World Bank assessment reveals an alarming increase in extreme poverty in the 39 economies worldwide affected by conflict and instability. This situation has led to institutional fragility for decades, causing “social and economic setbacks that further distance them from the Sustainable Development Goals.”
According to the international organization’s report, over 421 million people currently live on less than $3 a day in these conflict-ridden countries, exceeding the total number of people in extreme poverty in the rest of the world combined.
The WB estimates that this figure could reach 435 million people by 2030; that is, “almost 60% of the total global population in extreme poverty” as a result of military confrontations between Russia and Ukraine, as well as in the Middle East and Africa, a continent that accounts for 70 % of people suffering the effects of conflicts.
According to the World Bank, “since 2020, the GDP per capita of these economies has fallen by an average of 1.8 % annually, while in other developing countries it grew by 2.9 %. Furthermore, their per capita income levels (USD 1,500 annually) have not improved since 2010, unlike the average of USD 6,900 in other emerging economies.”
Moreover, the infant mortality rate in these nations is double that of other regions, and life expectancy is seven years lower; “90 % of school-aged children do not achieve minimum reading levels, and acute food insecurity affects 18 % of the population, 18 times more than in stable economies.”
The organization estimates that the losses caused by these conflicts amount to up to 20 % of GDP per capita over five years. In this regard, it considers it necessary to address issues such as violence prevention and institutional fragility early on to reverse the situation and identify the hidden potential of their economies to boost their development.
M.Pino
Source: finanzasdigital
(Referential image: Markus Krisetya on Unsplash)
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