Letters | For the millions pushed by Covid-19 into poverty, growth rates don’t mean much
- While the global economic recovery appears to get under way, the masses who lost jobs and even family members to the pandemic need help
- Relief measures in the form of subsidies and tax waivers are necessary
People have lost jobs, savings, livelihoods, homes and family members over the last two years. Poverty and unemployment have worsened. At the same time, there is a shortage of workers in many industries, as migrant workers who returned to their home country during the pandemic have yet to return to work. So, a key goal should be to inspire confidence among people and get production units operating at full capacity.
Government across the world, and especially in developing countries in Asia, Africa and Latin America, will have to spend copiously on social benefits like subsidised food and medicine for the poor. The priority should be to generate jobs and provide livelihoods to those who have suffered the most during the pandemic.
The more sensitive governments in Asia and Africa should suspend income taxes for people who are middle-class or lower. Governments should also consider exempting basic foods like flour, sugar, lentils and edible oils, as well as cooking gas, from taxes for two years to help the poor.
It is also time for governments to undertake serious reviews of their medical facilities. People have died waiting for hospital beds, medicine, vaccines and oxygen. In countries like India, people have had to pay for the vaccines too.
Grand projects and statues should be postponed for some years. Priority should be given to establishing hospitals, medical colleges, nursing institutes and so on. Whether global growth is 3 or 4 per cent means very little to the 97 million people who fell below the poverty line of US$2 per day in 2020 as the world grappled with the pandemic, according to World Bank estimates released in June.
