Over 70 Million Global Citizens are Staring at Poverty

The Russia-Ukraine war has led to several serious repercussions, not least of which is the rising energy and food prices. That’s a problem affecting people across the income spectrum, but it hits those at the lower end particularly hard.

According to a MoneyTransfers analysis, over 70M people globally are staring at unprecedented personal hardships. The site concludes so by examining the impact of the current global inflation on the world’s needy populations. It holds that many will fall below the expanded poverty lines of $3.20/day and $5.50/day for lower-middle and upper-middle-income countries.

MoneyTransfers.com’s CEO Jonathan Merry has been discussing the data. He avers,

Which Regions are at Most Risk?

The risk of sinking into abject poverty is highest in Sub-Saharan Africa. But other regions facing heightened poverty include Colombia, Iraq, Pakistan, Indonesia, and Turkey. This calls for concerted efforts to alleviate the difficulty that the global needy are facing.

Rising grain and fertilizer prices compound Africa’s situation further. Unfortunately, this crisis can only get worse in the coming months. The crisis has seen Russia and Western governments trade accusations on who’s responsible. Russian government officials on the continent blame the West for imposing sanctions limiting trade in agricultural products.

But Western officials refute Russia’s claims. They, in turn, lay the blame squarely on Moscow. According to them, the crisis has much to do with Russia’s blockade of Ukrainian ports. That has led to United Nations World Food Program’s head David Beasley, who has described the situation as a “declaration of war” on global food security.

What are the Solutions to the Current Food Crisis?

Governments must take action to protect the vulnerable members of society from the devastating effects of rising prices for essential commodities. Without policy interventions, millions could end up in extreme poverty, with dire consequences for their health and wellbeing.

One of the mitigation measures that the UNDP has suggested is financial aid. The body has proposed targeted financial assistance rather than blanket subsidies in the food and energy sectors. UNDP argues that umbrella subsidies would only cut the number of new poor by a fifth.

In contrast, through its modeling, the UN body suggests that focussed assistance would shrink the population of the global poor in general. The World Bank estimates that nearly 650M people live in abject poverty. Financial aid can help target these absolutes and work on raising the poverty line standard for many around the world.