89 million people head for extreme poverty by 2010 - World Bank
- 23.09.2009

THE World Bank says low-income countries will remain under the shadow of the global financial crisis for a long period, estimating cases of extreme poverty to rise in 2010.

In a paper prepared for the upcoming G-20 meeting in Pittsburgh, United States, the World Bank said that as a result of the crisis, 89 million additional people would live in extreme poverty, on less than 1.25 dollar a day, by the end of 2010.

The paper was published on the web site of the World Bank on Tuesday, ahead of the G-20 meeting, which holds between tomorrow and Saturday.

The global financial crisis was triggered by sub-prime mortgage facilities in the U.S., with the collapse of its top financial institutions, such as the Lehman Brothers in 2008, sending ripples across the world economy.

“The global recession has also put at risk 11.6 billion U.S. dollars of core spending in areas such as education, health, infrastructure and social protection in the most vulnerable countries,’’ the World Bank states.

The paper, entitled “Protecting Progress: The Challenge Facing Low-Income Countries in the Global Recession,” said the global economy had shown tentative signs of recovery, but 43 low-income developing countries were still suffering the consequences of the global recession. The countries were not listed.

According to the paper, the economic conditions of the low-income countries highlight the need to increase support to the poorest countries dealing with economic volatility and crisis.




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