(MENAFN) In a sobering report released on Monday, the World Bank underscored a troubling trend: the income gap between the world's wealthiest economies and the poorest half of nations is widening for the first time in this century. This marked reversal in development progress signals a historic decline, raising concerns about the prospects for global equity and prosperity.
According to the report, the disparity in per capita income growth between the 75 poorest countries and the richest economies has grown significantly over the past five years. Ayhan Kosi, deputy chief economist at the World Bank and one of the report's authors, emphasized the gravity of the situation, stating, "We are not seeing a convergence for the first time. They are getting poorer." This structural decline in development has far-reaching implications, prompting the World Bank to issue a dire warning.
The report highlights the urgent need for action, particularly in the 75 countries eligible for grants and interest-free loans from the World Bank's International Development Association (IDA). Without substantial policy reforms and significant international assistance, these nations risk falling short of a decade's worth of development goals. Kosi emphasized that many of these countries were already experiencing slowing growth even before the onset of the Covid-19 pandemic. Projections indicate a meager 3.4 percent growth rate between 2020 and 2024, marking the weakest five-year growth period since the early 1990s.
Multiple factors contribute to this concerning trend, including the destabilizing effects of the Russian war in Ukraine, the escalating impacts of climate change, and a rise in violence and conflicts in various regions. These challenges further exacerbate the already precarious situation faced by vulnerable nations, compounding the obstacles to sustainable development and poverty alleviation efforts.
In light of these developments, the World Bank's report serves as a clarion call for urgent and concerted action to address the widening income gap and mitigate the associated risks to global stability and prosperity.
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