Job losses from coronavirus pandemic could force 11 million into poverty in Asia, International Finance Corporation says
- International Finance Corporation pumping US$8 billion into programmes to support companies in emerging markets
- Emerging markets has experienced about US$96 billion in capital outflows since late January
The coronavirus pandemic could erase two decades of progress in eradicating poverty in the Asia-Pacific region as it threatens to send the global economy into a deep recession, according to the International Finance Corporation, which provides financing for private sector companies in developing markets.
The sister organisation of the World Bank plans to pump US$8 billion into a broad series of programmes designed to support small and medium-sized enterprises (SMEs) in emerging market economies, which have been hit particularly hard by the pandemic.
Vivek Pathak, the IFC’s regional director for East Asia and the Pacific, said about US$96 billion has flowed out of emerging markets since late January, and tourism – a major driver of the economies in Cambodia, Fiji and other parts of the region – is “close to dead” right now.
“Our biggest concern is the loss of jobs,” Pathak told the South China Morning Post. “If the situation were to continue to deteriorate, we would have close to 11 million people going back into poverty.”
That 11 million would be on top of the 24 million people the World Bank estimates will not be able to escape poverty in the East Asia and Pacific region this year because of the pandemic.