New Delhi: New data from the World Bank shows that the global financial crisis will push tens of millions more people into poverty.
The Bank estimates lower economic growth rates will force about one hundred mn people to live on less than $2 a day than was expected before the crisis.
"Even those who are below the poverty line will be pushed further below the poverty line. We know that after the food and fuel crisis of a year ago the estimates were that we could see an addition of about 100 million people to the ranks of the poor, and we think this crisis, in its severity, will top that,” Vice President for Poverty Reduction and Economic Management, World Bank, Danny Leipziger.
The global economic crisis poses a real threat to United Nations goals to cut poverty in half by the year 2015. The Bank is warning many developing countries are now highly exposed.
SOT 2: (English) Danny Leipziger, Vice President for Poverty Reduction and Economic Management, World Bank:
"We know that, given the depth of the recession that it's inevitable that it'll spill over into the developing world. We've identified at least 40 countries that have pre existing high poverty rates and expected drops in their growth, which makes them highly vulnerable" says, Danny Leipziger.
In a policy note issued just before the Group of Seven financial ministers' meeting on Saturday, the Bank noted almost 40 per cent of 107 developing countries are now highly exposed.
Fewer than 10 per cent of developing nations face little risk from the financial crisis.
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