First crisis, then catastrophe: Oxfam International
Recently Oxfam International has released a report titled “First Crisis Then Catastrophe”.
This Oxfam report has outlined that in the year 2022, an additional 263 million people will suffer from extreme poverty.
- impact of covid-19,
- inequality and food and energy price inflation,
- Inflation intensified due to the ongoing war in Ukraine, etc.
- All this would result in a total of 86 crore people living below the extreme poverty line on an income of $1.90 a day.
Key recommendations of the report:
- Creation of a Global Fund for Social Security:
There is a need to establish an international financing mechanism to ensure social security. This will enable low-income countries to provide the necessary income security for their population.
This will be possible through the following measures:
- Cash transfer to cut value added taxes on staple food and provide income support.
- International trade regulations should support the development of local and regional food systems. Additionally, unfair competition should be avoided with large companies affiliated with the agriculture industry.
- Canceling unpaid debts: All debt payments in all low and lower middle-income countries should be canceled in 2022 and 2023. Also, a sovereign debt restructuring mechanism should be promoted.
- Re-allocate and re-issuance of Special Drawing Rights (SDR): SDRs should be reallocated under the IMF. This will ensure that it is debt-free and condition-free.
- Increase in Additional Aid: Emergency assistance provided to low-income countries should be increased.
Source – The Hindu