The coronavirus disease (COVID-19) could plunge about half a billion people into poverty, according to the data released by Nairobi-based charity Oxfam.
According to the report by Reuters, Oxfam said this was based on the calculations they have done regarding the effect of the disease on global poverty due to decreasing household incomes
Oxfam’s data showed that the impact of the disease in the economy is becoming deeper than the 2008 global financial crisis, and it could throw many countries back to poverty levels after climbing out of it for three decades. It added that “global poverty could increase for the first time since 1990.”
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The report added that under serious scenario, such as a 20 percent income reduction, the number of people under extreme poverty line would increase to 922 million worldwide. It also showed that women will be more at risk than men because they will be pushed to work in the informal economy with limited employment rights.
In addition, the World Bank announced that people living in poverty in East Asia and the Pacific region could rise to 11 million.
Oxfam, however, said such scenario can be eased as it proposed an action plan aimed to deliver bailouts to people and businesses in need, call for cancellation of debt, and request more aid from IMF and governments around the world.
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As per Reuters’ report, Oxfam said “taxing wealth, extraordinary profits, and speculative financial products would help raise the funds needed.”
