Corona and the energy crisis are exacerbating global inequality - Germany will feel the consequences
Created: 2022-10-23 06:29
By: Christina Denk
The corona and energy crises are exacerbating inequality worldwide.
Germany comes off better as an industrial nation, but feels the consequences.
Washington/Berlin – 685 million people below the poverty line in 2022, educational inequalities and reduced life expectancy: the global economy has been experiencing an upswing for a long time.
But the corona crisis and the Ukraine war are reversing the trends.
Germany will also feel the consequences of growing global inequality.
Corona increases inequality: "Massive learning losses and reduced life expectancy"
Corona was already a heavy blow for many developing and emerging countries.
Inadequate vaccination campaigns and rising debt have left countries extremely vulnerable to crises, according to Allianz's Global Wealth Report.
In addition, the tax policy and other emergency aid measures to reduce poverty in rich countries, which had more resources at their disposal, showed a clearer effect than in developing countries, adds the World Bank's report "Poverty and Shared Prosperity".
The energy and corona crises are exacerbating inequality worldwide.
According to forecasts, most of the extremely poor will also be living in Africa in 2030 (picture from Kenya).
© Brian Inganga/dpa
"The richest economies have recovered from the pandemic much faster than low- and middle-income economies," the report said.
The data showed that the poorest 40 percent of the world's population lost twice as much income as the richest 20 percent.
In addition, there are setbacks in the areas of education and health “with massive learning losses and reduced life expectancy,” according to the report.
The education gap can also be seen in Germany.
The Ukraine war and the associated energy crisis further worsen the situation.
Poverty intensified: the EU and the USA are actively contributing to the shift
"The war in Ukraine has stalled the post-Covid-19 recovery and turned the world upside down," according to the Global Wealth Report.
Inflation, food and energy shortages led to problems worldwide and will probably influence the development of the markets for years to come.
The so-called de-globalization also means that the EU and the USA are withdrawing important investments from developing countries.
Industries such as semi-conductors, batteries and hydrogen prefer to be located at home.
also read
"Impossible material" discovered on Mars: explanation after surprising discovery by Nasa rover
"There are more of these monsters out there": giant fish off Portugal causes a stir
This also influences the poverty forecasts.
The authors of the World Bank report see the UN's goal of eradicating extreme poverty by 2030 as doomed to failure.
The Extreme Poverty Line
According to the Federal Ministry for Economic Cooperation and Development, poverty is “the inability to meet basic human needs.” This includes consumption and food safety, health care, education, the exercise of rights, security and decent work.
The
World Bank
defines extreme poverty as $
1.90 a day
.
"This means that extremely poor people are unable to buy the amount of goods that would cost $1.90 in the US every day."
In 2020 alone, the number of people living in extreme poverty increased by 70 million.
By 2030, 574 million people, seven percent of the world's population, are expected to live on less than $2.15 a day, most of them in Africa.
For 2022, the number is estimated at 685 million people.
In Germany, the poverty rate, not specifically extreme poverty, was 16.6 percent in 2021.
Income distribution is shifting to extremes: Germany will feel the consequences
Within the countries, the distribution of income is also shifting to extremes globally.
In the USA, China, Brazil and South Africa one can hardly speak of a middle class anymore.
A functioning middle class can only be seen in Romania, Italy and Israel.
In Germany, too, low earners and pensioners are hit hardest.
The corona and energy crisis has thus reversed the decline in poverty in the world.
This shift will also have an impact on Germany, which is characterized by exports.
If the assets are distributed among a few nations worldwide, the customers of the Federal Republic will dwindle, notes
focus.de
.
In addition, there are possible streams of refugees with people fleeing extreme poverty.
In Germany, is the energy crisis hitting the East harder than the West?
(chd)
