Cost-of-Living Crisis in Developing Countries’ report
On July 14, 2022, the United Nations Development Programme (UNDP) published its “Cost-of-Living Crisis in Developing Countries” report.
Key Findings of the report
- As per report, global cost-of-living crisis is forcing another 71 million people in poorest countries of world, into extreme poverty.
- Analysis over 159 developing countries highlighted that, increase in key commodity prices in 2022 is already disturbing parts of Sub-Saharan Africa, Asia and the Balkans.
- Report warned that, the cost-of-living crisis is forcing millions of people into poverty and starvation at alarming speed.
- The UNDP has asked for tailored action. It has asked for direct cash transfer to the vulnerable. It also asked the rick nations to extend and expand the Debt Service Suspension Initiative (DSSI) they have set to help poor countries during COVID-19 pandemic.
- According to UNDP, targeted cash transfers by governments will prove to be more “equitable and cost-effective” as compared to blanket subsidies on energy and food prices. Due to blanket subsidies, rich society gets more benefits.
Poverty lines by World institutions
International institutions such as UN, International Monetary Fund and World Bank have set a number of ‘poverty lines’. Poverty line of USD 1.90 or less a day has been for poorest countries, USD 3.20-a-day is for lower middle-income countries while a USD 5.50-a-day is for upper middle-income countries. As per UNDP estimate, current cost-of-living crisis have forced more than 51 million people into extreme poverty at USD 1.90-a-day, and more of 20 million at USD 3.20-a-day.
United Nations Development Programme (UNDP)
UNDP is an UN body, that helps the countries in removing poverty and attaining the sustainable economic growth and human development. It is headquartered in New York City, and have offices across 170 countries. UNDP is the largest UN development aid agency.
Month: Current Affairs - July, 2022
Category: Reports & Indexes Current Affairs