Analysis Report on 159 Countries... Rapid Increase in Poverty Due to Rising Prices
"Food and Energy Markets Hit by Ukraine War"
UNDP Emphasizes Need for Targeted Support for Vulnerable Groups Including Direct Cash Assistance
As inflation continues, the number of people living in poverty in developing countries is increasing. [Image source=Yonhap News]
[Asia Economy Reporter Park Hyun-joo] A report has revealed that the poverty rate in developing countries is rapidly increasing due to widespread price hikes in energy and grains. The number of people living on less than $3.20 (approximately 4,160 won) per day has increased by 71 million in just three months.
On the 7th (local time), AFP reported that the United Nations Development Programme (UNDP) analyzed 159 developing countries and stated that extreme poverty households have significantly increased this year due to rising prices.
According to the report, during the three months following the Ukraine war, the population spending less than $3.20 per day on living expenses increased by 71 million. Among them, the population living on $1.90 (approximately 2,470 won) per day rose from 624 million to 675.5 million, an increase of about 51 million, and the population spending between $1.90 and $3.20 per day increased by about 20 million. These groups were mainly concentrated in the Sub-Saharan Africa region.
This amount corresponds to the poverty line standard set by the World Bank (WB), which indicates the minimum income required for basic living. Low-income countries have a poverty line of $1.90 per day, lower-middle-income countries $3.20 per day, upper-middle-income countries $5.50 per day (7,150 won), and high-income countries $21.70 per day (28,000 won).
UNDP cited the Ukraine war as the cause of the rapid increase in poverty over the three months. The war's aftermath severely impacted food and energy markets, causing prices to rise. UNDP suggested that providing cash support to vulnerable groups is a fairer and more effective measure than other policies such as energy subsidies.
Achim Steiner, UNDP Administrator, warned, "The unprecedented price hikes mean that many people around the world who could eat food yesterday can no longer do so today," adding, "The cost-of-living crisis is rapidly pushing millions into poverty and hunger. Along with this, the likelihood of social unrest is increasing day by day."
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