debt

In response to the publication today of the World Economic Outlook by the International Monetary Fund (IMF), Nabil Abdo, Oxfam International’s senior policy advisor on international financial institutions, said: “The IMF is now saying that fiscal consolidation during economic crisis —like today’s economic maelstrom— hasn't served its primary purpose of reducing debt. It’s positive that the IMF is finally admitting this painfully evident fact, but it’s hugely frustrating that it continues to push austerity measures on poor borrowing countries facing huge economic challenges." 

Despite millions of people being pushed into hunger and poverty, 143 countries — including 94 developing nations — are implementing policy measures that undermine governments’ capacity to provide healthcare, education and social protection. 
 

For every new billionaire created during the pandemic — one every 30 hours — nearly a million people could be pushed into extreme poverty in 2022 at nearly the same rate, reveals a new Oxfam brief today. “Profiting from Pain” is published as the World Economic Forum — the exclusive get-together of the global elite in Davos — takes place for the first time face-to-face since COVID-19, a period during which billionaires have enjoyed a huge boost to their fortunes. 

The COVID-19 pandemic has worsened the extreme inequality in Southern African Development Community (SADC) countries and pushed millions into poverty, reveals a new analysis from Oxfam, Norwegian Church Aid (NCA) and Development Finance International (DFI).

The COVID-19 pandemic has worsened the extreme inequality in Southern African Development Community countries, and pushed millions into poverty. Recovering from the pandemic, however, offers SADC governments a once-in-a-generation opportunity to do reduce inequality drastically and eliminate extreme poverty by 2030. 

New Oxfam estimates show that 263 million more people could be pushed into extreme poverty in 2022, due to the combined impact of COVID-19, inequality and food and energy price inflation – accelerated by the war in Ukraine. Without urgent and bold national and international action, inequality and poverty will deepen, with poorer countries – many of which face looming debt crises – pushed deeper into poverty.

Over a quarter of a billion more people could crash into extreme levels of poverty in 2022 because of COVID-19, rising global inequality and the shock of food price rises supercharged by the war in Ukraine, reveals a new Oxfam brief today. 

Dominant narratives promoting economic growth at the expense of state institutions and basic social services have long underpinned a neoliberal model of spiralling debt and austerity in the MENA region. This exacerbates political capture and inequality and takes shape in an environment of media concentration and shrinking civic space.

The International Monetary and Financial Committee (IMFC) gave its approval today to set up a new IMF-administered Resilience and Sustainability Trust (RST) that will allow wealthy nations to channel some of their Special Drawing Rights (SDRs) to more vulnerable countries. In response, Nadia Daar, Head of Oxfam International’s Washington DC Office, said: “While it is positive that the RST will be accessible to a wide range of countries, including vulnerable middle-income countries hit hard by the COVID-19 pandemic, it is vital that the IMF deliver these funds on terms that are as close to grants as possible."

Responding to the G20 Finance Ministers’ meeting today, Nadia Daar, Head of Oxfam’s Washington DC Office, said: "The G20 is not delivering on its promise to rebalance the global economy and provide major relief. It has simply extended a freeze on bilateral debt-service payments through year-end, pushing the can down the road once again. If debt cancellation is not part of the solution, the world’s poorest countries will continue to struggle to cope with the pandemic and its devastating effects.