According to Oxfam’s report, the Covid-19 epidemic could put 1.2 billion people worldwide in extreme poverty.
According to Reuters, Oxfam assessed the corona virus epidemic causing household and consumer income to decline globally. “The current economic crisis will be more serious than the 2008 global financial crisis,” Oxfam said.
“No matter what the situation, the global poverty rate will increase for the first time since 1990,” the report stated. According to World Bank (WB) standards, very poor people have maximum income of USD 1.90 / day. The poor earn 5.50 USD / day.
If the Covid-19 epidemic caused a 20% reduction in household income, the number of people living in extreme poverty would increase from 434 million to 1.2 billion. The number of people living on less than 5.5 USD / day increased from 548 million to nearly 4 billion.
Women are more at risk than men because they often work in the informal sector and do not have labor rights. “The poor cannot afford to leave because they are paid daily. Up to 2 billion workers in the informal sector do not receive paid leave,” the report said.
To minimize the economic impact of the Covid-19 epidemic on the poor, Oxfam proposed a plan that included cash benefits, assistance to workers, businesses, debt relief and increased aid.
Governments around the world will need to mobilize at least US $ 2,500 billion to support developing countries.
“Rich countries have shown that at times of crisis they can raise trillions of dollars to support the economy. However, if developing countries cannot resist the impact on health and The economy of the epidemic, the crisis will continue and cause serious harm to both rich and poor countries, “the report emphasized.