In a world bustling with economic growth and technological advancements, a silent tragedy is unfolding in the poorest countries. Despite comprising only a fraction of the global economy, with a combined GDP of roughly $500 billion, these low-income countries (LICs) are home to 700 million people, half living in extreme poverty.
The challenges are immense. Governments in LICs often prioritize war and defense over vital sectors like health care, allocating nearly 50% more resources to conflict than to health. This misallocation leaves a mere 3% of government spending dedicated to supporting the most vulnerable, starkly contrasting with the averages of broader developing economies.
The human cost is stark. Maternal mortality rates have surged by 25%, access to electricity has dwindled from 52% to just 40%, and average life expectancy has plummeted to 62 years. These indicators paint a grim picture, worse than those of LICs two decades ago before some began transitioning to middle-income status.
Compounding these issues is the decline in foreign aid. Wealthier nations, grappling with their own challenges, have redirected funds to address rising refugee crises, leaving LICs with dwindling support. As a result, by the end of 2024, incomes in the poorest countries are projected to be 13% lower than pre-pandemic expectations.
Debt has become a crippling burden for these nations. From 2011 to 2015, grants made up about one-third of government revenues, but this has fallen to less than one-fifth. Governments are now sinking deeper into debt, with debt-to-GDP ratios soaring from 36% to 67%. Fourteen LICs are currently in or nearing debt distress, more than double the number from eight years ago.
As global leaders convene for the United Nations 2023 Sustainable Development Goals (SDG) Summit in New York, it's imperative they heed the crisis in LICs. Upholding the SDGs means prioritizing the most vulnerable and ensuring that efforts extend beyond addressing immediate refugee needs to tackling the root causes of poverty and instability.
Reference(s):
cgtn.com
