Half of poorest countries falling behind despite advantages – World Bank

Half of the world’s 75 most vulnerable countries are falling behind wealthy nations in income growth, a new World Bank report released on Monday reveals. This “Great Reversal” comes despite these countries boasting young populations, rich natural resources, and abundant sunshine for solar energy.

These IDA Borrowing countries home to 1.9 billion people, have immense potential. Their young workforce could fuel economic growth, and their resources are crucial for the clean energy transition. Yet, the report paints a concerning picture.

“One out of three IDA countries is poorer now than before the COVID-19 pandemic,” said Indermit Gill, World Bank Group’s Chief Economist. Extreme poverty is eight times higher than the global average, with hunger, malnutrition, and debt distress widespread. Foreign investment has declined, and climate disasters are taking a heavy toll, with costs doubling over the past decade.

The World Bank urges a two-pronged approach. IDA countries need to invest in education, healthcare, and job creation for their young populations. Additionally, they require significant international financial support, including improved debt restructuring, increased aid, and global cooperation on climate change.

“The world cannot afford to turn its back on IDA countries,” said Gill. “Their success is crucial for global prosperity.” The report cites past successes like China, India, and South Korea, all once IDA borrowers who climbed out of poverty. With the right policies and international support, the current IDA countries have the potential to do the same.