Cayman Islands, Caribbeanand International News
Monday, Mar 20, 2023

Pandemic reversing improvements in wealth inequality, World Bank says

Pandemic reversing improvements in wealth inequality, World Bank says

Temporary reprieve from surge in inequality erased by Covid-19 policies

Governments’ responses to Covid-19 are reversing gains made in combating global inequality, according to a World Bank report. It found the virus was disproportionately affecting the poor and warned the fallout would worsen.

World Bank President David Malpass explained that the situation arose from a confluence of negative factors, leading to a perfect storm of economic depression. “The world economy is simultaneously facing Covid-19, inflation, and policy uncertainty, with government spending and monetary policies in uncharted territory,” he said.

Government-mandated shutdowns were the primary reason for a spike in poverty rates that has affected populations around the world, the report stated. Government spending, deficits, and debt have soared to “record highs” compared to GDP, and countries are reluctant to raise interest rates lest their populations prove to be unable to withstand the economic shock.

Noting that “booming asset prices” are bolstering the bank accounts of the rich even as job losses and massive inflation have torpedoed any growth within the poorest population groups, the Bank warned that such an “increasing divergence of fortunes” was “especially troubling given the possibility of social discontent in developing countries.” Spikes in some commodity prices – such as the fuel hike in Kazakhstan – can trigger popular outrage on such a level that it threatens governments’ control.

Worse, the effects of the Covid-19 shutdowns are likely to echo through multiple generations, as children’s educational development has suffered due to school closures – especially those in low-income families who particularly struggled to access remote learning, the Bank’s report warns.

Malpass insisted that mass vaccination and “concerted international action and a comprehensive set of national policy responses” were the only ways for his institution to correct the problems it helped cause. Chief among his recommendations was a call for accelerated debt relief efforts, and while he stressed the importance of carbon taxes and other climate-change policies, he acknowledged that now was perhaps not the time to raise fuel prices.

Both the Bank and the International Monetary Fund were strong proponents of lockdowns. Echoing a similar offer from the IMF, the World Bank reportedly told Belarus in early 2020 that it could receive a significant amount of relief funding in exchange for modeling its Covid-19 control measures on those of Italy, which at the time was under a strict lockdown. When President Alexander Lukashenko declined to lock down his country, the bank warned Minsk’s economy would “face a severe shock” that year – a carrot/stick approach often seen in that institution's dealings.


Related Articles

Home Secretary Suella Braverman tours potential migrant housing in Rwanda as asylum deal remains mired in legal challenges
Paris Rioting vs Macron anti democratic law
'Sexual Fantasy' Assignment At US School Outrages Parents
Credit Suisse to borrow $54 billion from Swiss central bank
Russian Hackers Preparing New Cyber Assault Against Ukraine
Jeremy Hunt insists his Budget will get young parents and over-50s back into work
If this was in Tehran, Moscow or Hong Kong
TRUMP: "Standing before you today, I am the only candidate who can make this promise: I will prevent World War III."
Mexican President Claims Mexico is Safer than the U.S.
A brief banking situation report
Lady bites police officer and gets instantly reaction
We are witnessing widespread bank fails and the president just gave a 5 min speech then walked off camera.
Donald Trump's asked by Tucker Carlson question on if the U.S. should support regime change in Russia?.
Silicon Valley Bank exec was Lehman Brothers CFO
In a potential last-ditch effort, HSBC is considering a rescue deal to save Silicon Valley Bank UK from insolvency
BBC Director General, Tim Davie, has apologized, but not resigned, yet, following the disruption of sports programmes over the weekend
Elon Musk Is Planning To Build A Town In Texas For His Employees
The Silicon Valley Bank’s collapse effect is spreading around the world, affecting startup companies across the globe
City officials in Berlin announced on Thursday that all swimmers at public pools will soon be allowed to swim topless
Fitness scam
Market Chaos as USDC Loses Peg to USD after $3.3 Billion Reserves Held by Silicon Valley Bank Closed.
Senator Tom Cotton: If the Mexican Government Won’t Stop Cartels from Killing Americans, Then U.S. Government Should
Banking regulators close SVB, the largest bank failure since the financial crisis
The unelected UK Prime Minister Rishi Sunak, an immigrant himself, defends new controversial crackdown on illegal migration
Man’s penis amputated by mistake after he’s wrongly diagnosed with a tumour
In a major snub to Downing Street's Silicon Valley dreams, UK chip giant Arm has dealt a serious blow to the government's economic strategy by opting for a US listing
It's the question on everyone's lips: could a four-day workweek be the future of employment?
Is Gold the Ultimate Safe Haven Asset in Times of Uncertainty?
Spain officials quit over trains that were too wide for tunnels...
Don Lemon, a CNN anchor, has provided a list of five areas that he believes the black community needs to address.
Hello. Here is our news digest from London.
Corruption and Influence Buying Uncovered in International Mainstream Media: Investigation Reveals Growing Disinformation Mercenaries
Givenchy Store in New York Robbed of $50,000 in Merchandise
European MP Clare Daly condemns US attack on Nord Stream
Former U.S. President Carter will spend his remaining time at home and receive hospice care instead of medication
Tucker Carlson called Trump a 'demonic force'
US Joins 15 NATO Nations in Largest Space Data Collection Initiative in History
White House: No ETs over the United States
U.S. Jet Shoots Down Flying Object Over Canada
Being a Tiktoker might be expensive…
SpaceX, the private space exploration company, made a significant breakthrough in their mission to reach space.
China's top tech firms, including Alibaba, Tencent, Baidu, NetEase, and JD.com, are developing their own versions of Open AI's AI-powered chatbot, ChatGPT
This shocking picture, showing how terrible is the results of the earthquake in Turkey
President Joe Biden delivered the 2023 State of the Union Address , in order to help Americans that missed the 2022 speech, do not have internet, and suffer from short memory.
The desk of King Carlos Alberto of Sardinia has many secret compartments
Today's news from Britain - 9th February 2023
The five largest oil companies in the West generated combined profits of nearly $200 billion in 2022, which has led to increased calls for governments to impose tougher windfall taxes
2 earthquakes in Turkey killed over 2,300 people
Powerful Earthquake Strikes Turkey and Syria, Killing More Than 1,300 People.
Turkish photographer Ugur Gallenkus portrays two different worlds within a single image. Brilliant work