Income inequality is high in 42 countries, including Ghana, Honduras and Mozambique|@ciwaprogram|X
The income gap between half of the world’s 75 poorest countries and wealthiest economies is widening, marking a reversal of development for the first time this century, warns the World Bank in a report released on Monday.
The report points out that nearly 36 of the world’s poorest nations saw a slower growth in the average income earned per person than in developed countries since 2019.
The situation is dire since 90% of all the people facing hunger on Earth come from poorer countries. An Oxfam analysis of the report reveals
- Income inequality is high in 42 countries, including Ghana, Honduras and Mozambique, and has risen in 37 countries over the past decade, including Burkina Faso, Burundi, Ethiopia and Zambia.
- The difference in income has led to increased food insecurity and debt distress and has caused a surge in extreme poverty, with one in four people in these countries living on less than $2.15 a day.
The World Bank President Ajay Banga is advocating for increased funding for the International Development Association (IDA) to help these nations recover.
The report highlights the urgent need for governments and the private sector to address what the Bank is calling a “great reversal” by providing more support to vulnerable countries.