The charity Oxfam International expects that more than a quarter of a billion people will fall into poverty this year, due to the effects of Covid-19, the growing inequality in the world, and the high food prices due to the war in Ukraine.

Those factors could raise the number to 860 million people living on less than $1.90 a day by the end of 2022, or 263 million more than forecast before the pandemic, equal to the combined population of the United Kingdom, France, Germany and Spain, the organization said in a report.

Oxfam released the report ahead of the Spring Meetings of the International Monetary Fund and the World Bank, which were held last days in Washington, where global economic challenges and the shock of the Russian invasion are set to emerge as a major focus. Quoting an International Monetary Fund report, she said, the poorest people will be affected the most, as food costs represent 40% of consumer spending in sub-Saharan Africa, compared to 17% in advanced economies.

financial turmoil

Oxfam has warned that returning inflation is a recipe for financial turmoil in low-income countries that need money to pay for energy, medicine and food imports, and most of their debt tends to be in US currency.

To address the situation, the organization has proposed a number of ideas including an annual wealth tax on millionaires starting at 2%, and 5% on billionaires, which the organization estimates will generate $ 2.52 trillion annually. That would be enough to lift 2.3 billion people out of poverty, make enough vaccines for the world, and provide universal health care and social protection for everyone living in low- and lower-middle-income countries.

“We reject any notion that governments do not have the money or the means to lift all people out of poverty and hunger and to ensure their health and happiness,” says Gabriella Bucher, Executive Director of Oxfam International. “We just see a lack of economic savvy and the political will to actually do so.”

In the US, President Joe Biden last month proposed a minimum tax of 20% on household wealth above $100 million. And while this proposal could generate hundreds of billions of dollars in new revenue and have strong support among many Democrats, it is unlikely to pass any time soon in Congress, where the party has a very slim majority, because many moderate lawmakers are wary about such a move. The big tax reform.

Oxfam is also urging the G20 to cancel all debt payments this year and next for all low- and middle-income countries that request it. The group estimated that debt service obligations for all of the world's poorest countries will reach $43 billion this year; That's half of its food import bills and public health care spending combined.

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