Credit crunch ‘tsunami’ to hit world’s poor as 90 million forced into poverty
9 March 2009
The economic downturn could devastate the developing world as 90 million more people are forced into poverty by the end of next year, International Development Secretary, Douglas Alexander, warned today.
New estimates suggest the fight against extreme poverty could be put back by
up to three years, with the number of men, women and children being forced to
live on less than 90p a day growing by millions every week.
The International Development Secretary was speaking ahead of next month’s G20 meeting and set out new proposals to protect the poor groups with an international ‘rapid response’ fund that would provide a safety net for the world’s most vulnerable people.
The multi-billion pound fund would offer basic services such feeding children and medical care for pregnant women and be specifically targeted at the most vulnerable groups including women, children, elderly people and the disabled. The fund would also invest in projects to get people back into jobs including ‘food for work’ projects.
The fund would be supported by a new ‘Global Poverty Alert’ system that would link international organisations, aid agencies and research groups into a single network that would provide instant updates on the impact of the economic crisis on the poor. This would include ‘real-time’ updates using text messaging and emails.
The proposal will be put forward at next month’s G20 meeting in London.
Speaking at a UK-led conference investigating the impact of the downturn on the world’s poor, the Prime Minister Gordon Brown said:
"Sharp falls in trade, production and investment mean a real threat to the years of progress we have made in lifting people out of poverty. The World Bank have estimated that over two million children could die as a result of the downturn. That must not happen. "Today's talks are a key opportunity for the UK, donor countries and developing nations to look at how we find our way through the current economic crisis in a way that protects the world's poor."
Secretary of State for International Development Douglas Alexander, said:
“We meet today in the shadow of a global financial crisis more serious than we have seen for generations. The impact of the crisis can be seen all around us but the knock-on effect is now being felt by the world’s poor.
“Although less affected by the immediate fall-out of the credit crunch, the economies of developing countries could be seriously damaged by a second wave of a credit crunch tsunami.
“As global trade and investment disappears, businesses close and jobs are lost. For people living close to the poverty-line, the impact could be devastating.
“Globally, by the end of next year, we could see some 90 million more people living in extreme poverty.
“Radical action needs to be taken to protect people from this financial CRISIS and that is why the British Government will be putting forward proposals to the G20 next month that will safeguard the most vulnerable. It is right that we put in place life-saving support for those hit hardest by the crisis.”
The London Summit 2009 website
