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COVID-19 response: Where we stand now, and the road ahead Image The world is now a full year into the COVID-19 pandemic both the health emergency and the global economic crisis it has generated. Its impacts have touched every person in every country, causing illness and death, disrupting livelihoods, and potentially pushing an estimated 150 million more people into extreme poverty around the globe by the end of 2021. And while the rapid development of vaccines offers all of us some hope, we know that the pandemic will continue to dominate our lives in 2021. Although we are far from the end of this crisis, it’s worth taking a look at where we are now and what needs to happen next. Recently I joined a roundtable on the World Bank’s Development Podcast to take stock of the early progress and ongoing challenges in the global response to the coronavirus. I’d like to share a few takeaways from that discussion. ....
Image The New Poor Over the past 12 months, the pandemic has harmed the poor and vulnerable the most, and it is threatening to push millions more into poverty. This year, after decades of steady progress in reducing the number of people living on less than $1.90/day, COVID-19 will usher in the first reversal in the fight against extreme poverty in a generation. In a worst-case scenario, the figure could be as high as 115 million. The World Bank Group forecasts that the largest share of the “new poor” will be in South Asia, with Sub-Saharan Africa close behind. According to the latest Poverty and Shared Prosperity report, “many of the new poor are likely to be engaged in informal services, construction, and manufacturing – the sectors in which economic activity is most affected by lockdowns and other mobility restrictions.” ....