The world is grappling with the first increase in extreme poverty in two decades, according to the latest World Social Report 2024 released by the UN Department of Economic and Social Affairs. Titled Social Development in Times of Converging Crises: A Call for Global Action, the report highlights how successive shocks, beginning with the COVID-19 pandemic, have reversed significant social development gains.
Despite ongoing macroeconomic recoveries, extreme poverty remains stubbornly high in countries facing special challenges, revealing deep structural vulnerabilities. By 2022, extreme poverty had bounced back to pre-pandemic levels in most nations, with the exception of low-income countries.
Unemployment has surged in low-income regions, with the employment gap increasing from 20% in 2018 to 21% in 2023. This rise has further widened global income and wealth disparities, as the poorest half of the world’s population controlled just 2% of global wealth, while the richest 10% held a staggering 76%.
The report warns that the ongoing crisis could lead to cumulative economic losses exceeding $50 trillion between 2020 and 2030. This figure underscores the lost opportunities for investing in vital social development initiatives.
However, there is a silver lining. As nations slowly emerge from multiple crises, there is a crucial window of opportunity to mitigate long-term impacts and build more resilient societies. The report calls for urgent international collaboration to support national efforts in addressing the setbacks caused by recent global disruptions and to prevent future shocks from escalating into full-blown crises.
Key recommendations include reforming international development finance to better support country-level responses, easing the debt burdens of developing nations, and strengthening the sovereign debt architecture. These measures are essential for creating the fiscal space needed to drive social progress and combat poverty effectively.
Li Junhua, UN Under-Secretary-General for Economic and Social Affairs, emphasized the importance of multilateral action, stating, \"This report brings to light the important role of multilateral action in supporting national-level efforts to fight poverty, create jobs, and ensure everyone has a fair chance in life.\"
The World Social Report stands as the flagship publication of the UN Department of Economic and Social Affairs, providing in-depth analysis on major social development issues and identifying emerging global trends.
Reference(s):
World sees first increase in extreme poverty in 20 years: UN
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