An estimated 100 million people in developing countries will fall into extreme poverty because of the economic and financial crisis, according to a report being presented Wednesday evening in the House.
An estimated 100 million people in developing countries will fall into extreme poverty because of the economic and financial crisis, according to a report being presented Wednesday evening in the House. A “perfect storm” of falling aid donations, the economic slump and a fall in capital flows have meant that there is an estimated $11.6 billion shortfall for things like education and health.
The non-legislative report, drafted by Spanish Socialist Enrique Guerrero, stresses the need for a concerted effort from developed countries to alleviate the situation - especially from the EU which supplies 60% of all development aid.
Mr Guerrero wants EU members to increase development aid from the current 0.4% of gross national income to 0.5% this year and 0.7% within five years.
Up to 50,000 children may die in Sub-Saharan Africa
In addition to the increased poverty, the report warns that between 30,000 - 50,000 children may die in Sub-Saharan Africa due to the current economic crisis.
The report says many poorer countries will not recover like Europe and North America: “For the developed world this crisis will be a temporary slump in its prosperity, both in intensity and in duration. For many developing countries it threatens to be an abyss in which an entire decade of the fight against poverty and exclusion will be lost.”
The Guerrero report also points out that in terms of the world's financial architecture, developing countries are missing out as only 1.6% of all loans by the International Monetary Fund go to developing countries.