Wednesday, April 20, 2022

It is the poor that pays


Oxfam report, entitled “First Crisis, Then Catastrophe,” estimated that at least a quarter of a billion more people could be pushed into extreme poverty, defined as receiving below $1.90 per day, bringing the total to 860 million.

The number of people estimated to be living below the poverty line of $5.50 per day is already 3.3 billion, almost half the world’s population.

At the same time, billionaire wealth “has seen its biggest increase ever” with more accumulation at the top to come.

“Large corporations appear to be exploiting an inflationary environment to boost profits at consumers’ expense: soaring energy prices and margins have pushed oil company profits to record levels, while investors expect agriculture companies to rapidly become more profitable as food prices spiral,” Oxfam stated, adding, inflation is rising rapidly and will far outstrip wages growth this year.

Poorer countries are being bled white by the international banks, multilateral lending institutions, including the IMF, and investment houses. Debt servicing for all the world’s poorer countries is estimated at $43 billion for this year, equivalent to nearly half their spending on food import bills, healthcare, education and social protection combined. For the lowest-income countries, in 2021 the amount spent on debt servicing and repayments was 171 percent of their combined spending on healthcare, education and social protection.

The report warned, “Several developing countries are likely to default on their debts in coming months, and will try to stave off bankruptcy as they try to maintain vital imports..."

Oxfam Report: Poorer Countries Going From Crisis To Catastrophe| Countercurrents

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