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A worse place

2020-10-19T12:54:56.319Z


The shock wave of the pandemic will leave 150 million people in poverty A group of people queues at the Gran Avenida 24 food bank, in the Orcasitas neighborhood, Madrid.Olmo Calvo The turbulence that the pandemic has unleashed at the local level and the gigantic recession that is coming cannot make us close our eyes to the conditions that affect everyone globally. The World Bank has warned of the risk that between 110 and 150 million people will fall into extreme pov


A group of people queues at the Gran Avenida 24 food bank, in the Orcasitas neighborhood, Madrid.Olmo Calvo

The turbulence that the pandemic has unleashed at the local level and the gigantic recession that is coming cannot make us close our eyes to the conditions that affect everyone globally.

The World Bank has warned of the risk that between 110 and 150 million people will fall into extreme poverty between now and the end of 2021 due to the shock wave of the coronavirus.

This is an exorbitant figure for the global economy and well-being, a prelude to massive suffering and pernicious consequences on the communicating vessels of an interconnected economy.

Unlike the 2008 crisis, which had a greater impact on the economies of rich countries, very interwoven by the financial vicissitudes that unleashed the destruction, on this occasion it is those of the poorest countries that are the most vulnerable as they do not have buffer mechanisms. the drop in activity.

The result will be that, for the first time after two decades of phase-down, according to the World Bank, poverty will skyrocket again.

As a consequence, huge pockets of the population will swell to extreme poverty without food, medical services or adequate public care, generating an impact that will convulse the world and its relations in the coming years.

The international body has stressed that, since 1870, a century and a half ago, there were not so many economies simultaneously in recession, which threatens to lead to a lost decade of weak growth, the collapse of many health and education systems and unbearable debt. .

There are several factors that explain a greater impact of the recession on the most disadvantaged classes in emerging countries, and the most evident is that, while rich countries are managing to allocate large amounts of public money to support workers who are temporarily losing their jobs. sustenance, in weaker economies, with great weight of the informal economy, there is no support for millions of people whose sources of income are interrupted.

The effects of that closing of the tap will be devastating.

And in the face of the non-existent rebound of the V-shaped economy, as was originally hoped for, or the danger of falling into a generalized L, with a very prolonged recession, the possibility of an exit in K opens up, allowing the return to growth in strong economies, as well as a sustained decline in weak economies due to not being able to support their workers, their health and education systems.

This can be especially virulent in Latin America.

The rich world cannot lose sight of this situation, as well as the increase in poverty in the developed economies themselves, which, although with different parameters, is also alarming: a report by the European Network to Combat Poverty and Social Exclusion, which It groups together more than 8,000 Spanish NGOs and elaborates its indicators based on data from the INE, has warned these days that the effects of the coronavirus will aggravate the poverty scenario in Spain: almost 12 million people were poor or were at risk of exclusion before of the pandemic, a situation that will obviously get worse.

Faced with the 2008 crisis, which left behind the great victims of the recession and widened the inequality gap, the world should not repeat the schemes that make it a worse place.

That is the great shared responsibility in a global economy.

Source: elparis

All news articles on 2020-10-19

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