World Bank predicts widespread poverty in East Asia and Pacific regions
In its recently released revised forecast, the World Bank predicted that millions in the East Asia and Pacific region would enter poverty due to the impact of the pandemic on economy.
The World Bank forecasted that millions in countries of East Asia and Pacific region, like China, could enter poverty due to the economic impact of the COVID-19 pandemic. It forecasted a growth rate of 2.1% in this region- much lower compared to the 5.8% seen in 2019. About 24 million fewer people will escape poverty in 2020 in this region (compared to the case in absence of the pandemic).
Some of the recommendations of the World Bank are:
- Urgent investment in national healthcare systems
- Improving long-term preparedness
- Integrated view of containment and macroeconomic policies
- Ensuring that temporary deprivations and the containment measures don’t lead to long-term impact on human capital. This can be done through targeted fiscal measures like healthcare subsidies.
- International cooperation
- Open trade policy to ensure availability of medical supplies to all countries.
- Use of new cross border PPP models to increase production and meet the demands for medical equipment
- Easing credit, coupled with adequate regulatory mechanism, for household consumption and to help firms survive the economic shock
The World Bank is an international institution made of 2 component institutions: International Bank for Reconstruction and Development (IBRD) and International Development Association (IDA). The World Bank itself is a component of the World Bank Group. India is one of the largest recipients of loans from this financial institution.