A new study from the UN Development Programme (UNDP) has found that an additional 207 million people could be pushed into extreme poverty by 2030 due to the severe long-term impact of the Covid-19 pandemic, bringing the total number of the world’s extremely poor to more than a billion.
The study assesses the impact of different Covid-19 recovery scenarios on the Sustainable Development Goals (SDGs), evaluating the multidimensional effects of the pandemic over the next decade. The study is part of a long-standing partnership between the UNDP and the Pardee Center for International Futures at the University of Denver.
The study said: “Severe long-term effects of the Covid-19 pandemic could push an additional 207 million people into extreme poverty on top of the current pandemic trajectory, bringing the total to over 1 billion by 2030.”
The ‘Baseline Covid’ scenario, based on current mortality rates and the most recent growth projections by the International Monetary Fund (IMF), would result in 44 million more people living in extreme poverty by 2030 compared to the development trajectory the world was on before the pandemic.
Under a ‘High Damage’ scenario, where the recovery is protracted, Covid-19 is likely to push an additional 207 million people into extreme poverty by 2030, and increase the female poverty headcount by an additional 102 million compared to that baseline, according to the report.
The ‘High Damage’ scenario anticipates that 80 per cent of the Covid-induced economic crisis would persist in 10 years’ time due to loss in productivity, preventing a full recovery to the growth trajectory seen before the pandemic.
However, the study also finds that a focused set of SDG investments over the next decade in social protection/welfare programmes, governance, digitalisation, and a green economy could not only prevent the rise of extreme poverty, but actually exceed the development trajectory the world was on before the pandemic. Strong steps are needed to boost economy and prevent poverty.