May 28, 2022
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Oxfam says 263 million more face extreme poverty

Oxfam says 263 million more face extreme poverty

THE IMPACTS of coronavirus illness 2019 (COVID-19), rising world inequality and hovering meals costs attributable to the warfare in Ukraine are set to ship more than a quarter-billion more folks into poverty this 12 months, in response to charity group Oxfam Worldwide.

The mixed hit could lead to a complete of 860 million folks dwelling under the $1.90 a day line by the top of 2022, or 263 million more than the projection earlier than the pandemic, the group mentioned in a report on Tuesday. That’s equal to your complete inhabitants of the UK, France, Germany and Spain mixed.

Oxfam launched the report forward of the Worldwide Financial Fund (IMF) and World Financial institution Spring Conferences going down subsequent week in Washington, the place world financial challenges and the shock of Russia’s invasion are set to function as two of the primary focuses.

The poorest folks will probably be hit hardest, with meals prices accounting for 40% of client spending in sub-Saharan Africa, in contrast with 17% in superior economies, Oxfam mentioned, citing an IMF report.

Oxfam warned that the return of inflation is a recipe for monetary turmoil in lower-income nations that want {dollars} for his or her vitality, drugs and meals imports, and whose debt is essentially within the US forex.

To deal with the scenario, Oxfam proposed quite a lot of concepts. They embrace an annual wealth tax on millionaires beginning at 2%, and 5% on billionaires, which the group estimates would generate $2.52 trillion a 12 months. That might be sufficient to elevate 2.3 billion folks out of poverty, make sufficient vaccines for the world, and ship common well being care and social safety for everybody dwelling in low- and decrease middle-income nations.

“We reject any notion that governments do not have the money or means to lift all people out of poverty and hunger and ensure their health and welfare,” mentioned Oxfam Worldwide Govt Director Gabriela Bucher. “We only see the absence of economic imagination and political will to actually do so.”

Within the US, President Joseph R. Biden final month proposed a 20% minimal tax on households price more than $100 million. Whereas it may generate tons of of billions of {dollars} in new income and has sturdy assist amongst many Democrats, it’s unlikely to be handed anytime quickly in Congress, the place the occasion has razor-thin margins, as a result of many reasonable lawmakers are skittish about such a giant tax overhaul.

Oxfam is also urging the Group of 20 greatest nations to cancel all debt funds this 12 months and subsequent for all low- and lower-middle-income nations that require it. The group estimated that debt servicing for all the world’s poorest nations will quantity to $43 billion this 12 months — equal to nearly half their food-import payments and public spending on well being care mixed. — Bloomberg

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