The COVID-19 crisis is inflicting the most pain on those who are already most vulnerable, International Monetary Fund (IMF) Managing Director, Kristalina Georgieva, has said.
The IMF boss said calamity could lead to a significant rise in income inequality. And it could jeopardize development gains, from educational attainment to poverty reduction. New estimates suggest that up to 100 million people worldwide could be pushed into extreme poverty, erasing all gains made in poverty reduction in the past three years.
She urged policymakers must do everything in their power to promote a more inclusive recovery, one that benefits all segments of society.
That is why policymakers must do everything in their power to promote a more inclusive recovery, one that benefits all segments of society.
In a report on the IMF website, Georgieva said new research, prepared jointly with the World Bank for the G20, focuses on how to increase people’s access to opportunities, no matter who they are and where they are from. More equitable access to opportunities is associated with stronger and more sustainable growth and higher income gains for the poor.
But unlocking the full potential of all individuals is not an easy task. The reality is that low-income households face higher health risks from the virus. They bear the brunt of record-high unemployment and are less likely to benefit from distance learning.
Children’s nutrition may also be harmed by the disruption to school-provided meals.
According to UN estimates , more than half a billion children worldwide have lost their access to education as a result of coronavirus lockdowns.
Many won’t return to the classrooms after the pandemic, with girls more likely than boys to drop out.