For the first time in two decades, the world is witnessing an increase in extreme poverty, according to a recent United Nations report. The World Social Report 2024, titled “Social Development in Times of Converging Crises: A Call for Global Action”, highlights how successive global shocks, beginning with the COVID-19 pandemic, have reversed key measures of social development progress.
The report, launched by the UN Department of Economic and Social Affairs, reveals that while macroeconomic recoveries are underway, extreme poverty remains stubbornly high, particularly in low-income countries. By 2022, extreme poverty levels had returned to pre-pandemic levels in most nations, except for the world’s poorest, indicating deep-seated structural vulnerabilities.
“This report brings to light the important role of multilateral action in supporting national-level efforts to find fiscal space to fight poverty, create jobs, and ensure everyone has a fair chance in life,” said Li Junhua, UN Under-Secretary-General for Economic and Social Affairs.
Unemployment rates in low-income countries have persisted, with the employment gap rate increasing from 20 percent in 2018 to 21 percent in 2023. These trends have exacerbated existing income and wealth inequalities globally. In 2022, the poorest half of the global population owned only 2 percent of the world’s wealth, while the richest 10 percent held a staggering 76 percent.
The crisis could result in cumulative economic output losses exceeding $50 trillion between 2020 and 2030, reflecting lost opportunities for investing in social development. As nations gradually emerge from multiple overlapping crises, there is an opportunity to mitigate long-term impacts and build more resilient societies.
The report emphasizes that in the current global policy environment, shocks readily escalate into crises that transcend borders, demanding urgent international action. It calls for global support to assist national efforts in addressing setbacks caused by recent global crises and to prevent future shocks from becoming full-blown crises.
Highlighting the critical need for reforming and refocusing international development finance, the report advocates for creating fiscal space necessary to drive social progress. It examines measures to alleviate the debt burdens of developing nations through official development assistance, including grants, concessional loans, meaningful debt relief in the short term, and strengthening sovereign debt architecture in the long term.
The World Social Report is the flagship publication of the UN Department of Economic and Social Affairs on major social development issues, identifying current and emerging social trends, and providing analysis on significant development challenges at both national and international levels.
Reference(s):
World sees first increase in extreme poverty in 20 years: UN
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