Crisis traps more in poverty, hunger: IMF/WB report

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WASHINGTON, April 25 (AFP): The global economic crisis means up to 90 million more people will remain trapped in extreme poverty this year while the chronically hungry could top one billion, a World Bank/IMF report said yesterday.
The report, entitled "A Development Emergency," says the crisis was putting in danger attaining the United Nations' 2015 Millennium Development Goals which focus on poverty reduction, especially in Africa.
Most of the eight goals-which also include reducing child and maternal mortality, improving education and fighting malaria and HIV/AIDS-"are unlikely to be met,' it said.
"It is estimated that an additional 55 to 90 million people will be trapped in extreme poverty in 2009 due to the worldwide recession.
"The number of chronically hungry people is expected to climb to over one billion, reversing gains in fighting malnutrition," a statement on the report said.
The report said efforts to cut poverty and hunger levels by half between 1990 and 2015 had gotten off to a good start but were now at risk as overseas markets dry up, and foreign investment and aid flows come under pressure. Before the sharp rise in food prices starting from 2007, some 850 million people suffered from chronic hunger but this had risen to 960 million in 2008 and would be above one billion this year, it said.
"The situation is extremely serious," said John Lipsky, first deputy managing director at the International Monetary Fund, describing the problems facing the poor as the "third wave" of a global crisis unprecedented since the 1930s Great Depression.
"With simultaneous recessions striking all major regions, the likelihood of painfully slow recoveries in many countries is very real, making the fight against poverty more challenging and more urgent," Lipsky said.
World Bank officials also warned that the situation in Eastern Europe and Central Asia was very serious, with recent development gains that had taken 90 million people out of poverty in the region put at risk by the crisis.
Shigeo Katsu, the World Bank's vice president for Europe and Central Asia, stressed the human dimension, urging authorities to bear in mind the need for a social welfare net besides measures to help banks and companies.
Meanwhile Antoinette Sayeh, the IMF director for Sub-Saharan Africa, one of the world's most vulnerable regions, said countries there need more direct aid to get through the crisis.
"Africa will need more international support," Sayeh told a news briefing, calling on developed countries to live up to their 2005 commitment to double aid by 2010.
Sub-Saharan Africa will grow just 1.5 per cent this year, down from 5.5. per cent in 2008, but recover to 4.0 per cent in 2010, according to the IMF.
"Risks are mostly on the downside," Sayeh said, adding that the "the crisis is now in full force in Africa."
She stressed that more aid should be given outright as grants so as to avoid these poorest countries from being saddled with fresh debt.