The head of the World Bank has warned that nearly 60 million people will be exposed to “extreme poverty”.
David Malpass says the bank expects the global economy to drop by 5 percent this year as countries suffer from the covid19 pandemic.
This has already caused millions of people to lose their jobs and the collapse of jobs where poor countries are most likely to suffer.
“Millions of jobs are lost and the health ministry is under pressure around the world,” he said.
“Our estimates are that 60 million people may be in extreme poverty – this has turned the clock back on the progress made in eliminating poverty over the past three years,” Mr Malpass warned Tuesday.
The World Bank defines “extreme poverty” as one person with less than $ 1.90 or 1.55 pounds per day.
The bank, which has its office in Washington, will give poor countries $ 160 billion in debt relief to solve problems. Mr Maples said 100 countries, which make up 70% of the world’s population, were given emergency aid.
“With the World Bank providing radiotherapy options, they will not be enough,” he said.
Mr Malpass said he was concerned about the small banks’ tendency to lend to countries.
“I don’t like the way it is being dragged. Banks are still taking money from poor countries and they should do more.”
The World Bank has worked with the International Monetary Fund (IMF) in a plan to give poorer nations the flexibility to repay loans they receive from the G20’s most powerful economies by the end of this year.
At the same time, Jamie Dimon, Chairman of JP Morgan Bank, said that the outbreak of covid19 should be a barrier to building a just society.
“My main hope is to use this epidemic to rebuild an economy that will provide long-term opportunities for multitudes of people, especially those left behind long ago,” he wrote before the annual conference. investors in the bank on Tuesday.