32 million more people are expected to lose their job, encounter reduction of income or face other economic challenges leading to social disasters as well as reversal of social progress in world poorest countries designated by UN (United Nations) or as Least Developed Countries –LDCs. Extreme poverty to reach a total count of 377 million in the closing of 2020 as realities of economic and social fallout from covid-19 crisis.
Least Developed Countries have suffered most of economic and social fallout due to covid-19 crisis said UN.
The pandemic have rolled back 30 years painstaking development progress of LDCs in social fields such as nutrition, education, healthcare and poverty reduction as well. Populations are so far extremely poor when living with a lower income than $1.90 per day according to UN standards.
More than half of global total of the extremely poor persons currently live in 47 called poorest countries of which 33 African countries. Poorest countries have experienced in 2020 their strongest economic shock since 3 decades, said a report of United Nations Conference on Trade and Development (UNCTAD) released on December 3rd.
In the closing month of 2020, LDCs’ economic growth forecast is revised sharply downwards from 5% to -0.4%, a prevision which is expected to lead to a 2.6% reduction in per capita income.
The impact will be extremely worse, as the pandemic is expected to lead to an increase of 3.2 percentage points of poorest rising of 32 million people. Poverty rate have pushed from 32.5% to 35.7% as in the average headcount ratio of the $1.90 per day poverty line. It is expected to have the deepest impact on the 33 African poorest countries and island LDCs, limiting their chances of achieving the Sustainable Development Goals (SDGs).
33 African countries of which Ethiopia, Rwanda, Senegal or DR Congo as well as Benin Republic, are concerned with this extreme poverty, in addition to other 14 countries from Asia, Caribbean and Pacific (Asia 9, Caribbean 1 and Pacific 4).
The report says the covod-19 pandemic has hit LDCs very hard because collectively they are the world’s most vulnerable economies. This is aggravated by their very weak levels of resilience. They have the least financial and institutional means to react to external shocks such as the on-going pandemic. “The pandemic has brutally reminded us of the urgent need to develop productive capacities in LDCs to enable them to achieve structural transformation, reduce exposure to external shocks and build resilience,” UNCTAD Secretary-General Mukhisa Kituyi said.