Covid-19 to add as many as 150 million extreme poor by 2021

 Global extreme poverty is expected to rise in 2020 for the first time in over 20 years as the disruption of the Covid-19 pandemic compounds the forces of conflict and climate change, which were already slowing poverty reduction progress, the World Bank said today.

The Covid-19 pandemic is estimated to push an additional 88 million to 115 million people into extreme poverty this year, with the total rising to as many as 150 million by 2021, depending on the severity of the economic contraction. Extreme poverty, defined as living on less than $1.90 a day, is likely to affect between 9.1 per cent and 9.4 per cent of the world’s population in 2020, according to the biennial Poverty and Shared Prosperity Report. “This would represent a regression to the rate of 9.2 per cent in 2017.” 

Had the pandemic not convulsed the globe, the poverty rate was expected to drop to 7.9 per cent in 2020, it reads.

“The pandemic and global recession may cause over 1.4 per cent of the world’s population to fall into extreme poverty,” World Bank Group president David Malpass said, adding that countries will need to prepare for a different economy post-Covid, by allowing capital, labour, skills, and innovation to move into new businesses and sectors, in order to reverse this serious setback to development progress and poverty reduction. “World Bank Group support – across IBRD, IDA, IFC and MIGA – will help developing countries resume growth and respond to the health, social, and economic impacts of Covid-19 as they work toward a sustainable and inclusive recovery.”

The report also finds that many of the new poor will be in countries that already have high poverty rates. A number of middle-income countries will see significant numbers of people slip below the extreme poverty line. About 82 per cent of the total will be in middle-income countries, the report estimates.

Government and World Bank sign financing agreement for Coronavirus response

The World Bank has approved a fast-track $29 million COVID-19 Emergency Response and Health Systems Preparedness Project to help Nepal prevent, detect, and respond to the COVID-19 pandemic and strengthen its public health preparedness.
The agreement has been signed today by the Finance Ministry and the World Bank, according to a press note issued by the World Bank.
The project will focus on the immediate response and preparedness needs to fight the virus. The project provides emergency support to enhance Nepal’s capacity to detect cases and ensure prompt contact tracing consistent with World Health Organisation (WHO) guidelines and Ministry of Health and Population protocols. “It will also help set up new intensive care units, beds, and isolation facilities across the country, the press note reads, adding that the project will be implemented by Ministry of Health and Population.
“We are thankful to the World Bank for the response in a record short period of time, which will help Nepal respond to the COVID-19 pandemic and strengthen our capacities to deal with future public health risks,” finance secretary Sishir Kumar Dhungana said, adding that immediately after the outbreak of COVID-19 in the country, the government of Nepal has made several arrangements to prevent and address the possible crisis. “Due to these measures, the socio economic activities are going to be affected.”
“Further support is being anticipated from the World Bank to cope with the emerging pandemic situation,” he added, after the signing ceremony.
The project will also equip designated health facilities with personal protective equipment and hygienic materials and increase the diagnostic capacity of laboratories for responding to public health emergencies. It will enhance the National Public Health Laboratory to handle harmful infectious diseases and strengthen public institutions to coordinate and better manage response activities in all three levels of government.
“Given the unprecedented nature of the COVID-19 pandemic, the government’s rapid response will help save lives across Nepal,” World Bank country manager for Nepal Faris Hadad-Zervos said, adding that the World Bank and its development partners are committed to helping Nepal beef up its health infrastructure and access the resources it needs to fight the spread of COVID-19and protect the livelihoods of its people.
The project is financed from the International Development Association (IDA), the World Bank’s concessional credit window for developing countries, through the World Bank Group’s COVID-19 Fast-Track Facility. It will be effective immediately after the signing, the press note reads, adding that it has also an option of World Bank-facilitated procurement as and when required as per the request of the implementing agency.
The agreement was signed by finance secretary Sishir Kumar Dhungana on behalf of the government of Nepal and World Bank country manager for Nepal Faris Hadad-Zervoson behalf of the World Bank.
The World Bank Group is rolling out a $14 billion fast-track package to strengthen the COVID-19 response in developing countries and shorten the time to recovery. The immediate response includes financing, policy advice and technical assistance to help countries cope with the health and economic impacts of the pandemic. The IFC is providing $8 billion in financing to help private companies affected by the pandemic and preserve jobs. IBRD and IDA are making an initial $6 billion available for the health-response. As countries need broader support, the World Bank Group will deploy up to $160 billion over 15 months to protect the poor and vulnerable, support businesses, and bolster economic recovery.

World Bank discuss federalism, diversified investment and reconstruction

The visiting World Bank officials discussed Nepal’s transition to federalism, the need to invest in the country’s human capital, crowding in the private sector for diversified investment, the pace of reconstruction after the earthquakes in 2015, and the creation of jobs, especially for Nepal’s youth, during their stay in Nepal.
An eleven-member delegation of the World Bank Group Executive Directors (EDs) visited Nepal from October 29 to November 1, marking the 50th year of World Bank Group-Nepal engagement, with the first World Bank credit in Nepal approved by the board on November 4, 1969.
The trip – that was part of a larger visit to the South Asia Region that will also include Bangladesh and Maldives – also gained a comprehensive view of Nepal’s current development status and opportunities, a press note issued by the multilateral development partner reads.
During their visit, the EDs met with representatives from federal and local governments, the private sector, development partners, and civil society, it reads.
“Nepal has made progress in reduction of poverty and its stable government signals a smoother transition to the federal structure,” said spokesperson of the Delegation and Executive Director for Costa Rica, El Salvador, Guatemala, Honduras, Mexico, Nicaragua, Spain and Republica Bolivariana de Venezuala, Jorge Chavez Presa. “However, to ensure stronger and more sustained growth, it needs rapid strengthening of institutions and systems,” he said, adding that the World Bank Group is committed to help the Nepal achieve its ambitious goals for the benefit of all Nepalis.
The EDs’ conversations with finance minister Dr Yuba Raj Khatiwada, focused on leveraging World Bank Group-wide support for the federalism agenda, maximizing finance for development, and investing in health and education for the people of Nepal.
During the visit to an earthquake reconstruction site in Patlekhet of Kavrepalanchowk, the EDs learnt about the reconstruction program that supported rebuilding of more than 430,000 houses after the devastating earthquakes. The government’s larger rural housing reconstruction programme aims at providing earthquake-resistant housing for around 700,000 beneficiaries.
The EDs also visited Incessant Rain Animation Studios – a Nepali studio exporting digital products to global cinema and gaming industry – and observed firsthand the retaining of young talent and the disruptive technology in action, the note further reads, adding that the EDs met entrepreneurs and private sector representatives to further understand investment scenarios and discuss ways for diversifying investment. “In their discussions with policymakers and civil society representatives, the EDs continued the conversation about opportunities emerging in different sectors in federal Nepal and ways to expand and enhance their positive impact.”
The World Bank Group has a strong partnership with Nepal, with 50 years of engagement since 1969. The current investment portfolio cuts across all key sectors in 25 projects and has a net commitment of $2.47 billion, as of September 2019.
The World Bank Group Board of Directors are collectively called the Executive Directors (EDs). The Board of Directors includes the president of the World Bank Group and 25 Executive Directors. Member countries of the World Bank Group appoint or elect Executive Directors to the Boards of the International Bank for Reconstruction and Development (IBRD), International Development Association (IDA), International Finance Corporation (IFC) and Directors to the Board of the Multilateral Investment Guarantee Agency (MIGA). While the World Bank Group maintains four Boards for these separate arms, Executive Directors typically serve on all Boards simultaneously.
The visiting delegation of the EDs includes Executive Director and Host for Nepal Kulaya Tantitemit; Executive Director Jorge Chavez Presa; Executive Director Herve de Villeroche; Executive Director Geir Haarde; Executive Director Patrizio Pagano; Executive Director DJ Nordquist; Executive Director Jean-Claude Tchatchouang; Executive Director Aparna Subramani; Executive Director Merza Hasan; Alternate Executive Director Gerard Antioch and Alternate Executive Director Nathalie Francken.

David Malpass becomes 13th president of World Bank Group

The executive directors of the World Bank (WB) today unanimously selected David R Malpass as president of the World Bank Group for a five-year term beginning on Tuesday, April 9, 2019. The board expressed its deep gratitude to interim president Kristalina Georgieva for her dedication and leadership in recent months, reads a press note issued by the World Bank.
Malpass previously served as under secretary of the treasury for International Affairs for the United States (US). As under secretary Malpass represented the US in international settings, including the G-7 and G-20 deputy finance ministerial, World Bank-IMF Spring and Annual Meetings, and meetings of the Financial Stability Board, the Organisation for Economic Cooperation and Development (OECD), and the Overseas Private Investment Corporation (OPIC).
The executive directors followed the selection process agreed in 2011, the note reads, adding that the process included an open, transparent nomination where any national of the bank’s membership could be proposed by any executive director or governor through an executive director. "This was then followed by thorough due diligence and a comprehensive interview of Malpass by the executive directors."
The Board looks forward to working with Malpass on the implementation of the Forward Look and the capital package agreement as articulated in the Sustainable Financing for Sustainable Development Paper.
In his role as under secretary, Malpass played a crucial role in several major World Bank Group reforms and initiatives, including the recent capital increase for IBRD and IFC. He was also instrumental in advancing the Debt Transparency Initiative, adopted by the World Bank and IMF, to increase public disclosure of debt and thereby reduce the frequency and severity of debt crises.     
Prior to becoming under secretary, Malpass was an international economist and founder of a macroeconomics research firm based in New York City. Earlier in his career, Malpass served as the US deputy assistant secretary of the Treasury for Developing Nations and Deputy Assistant Secretary of State for Latin American Economic Affairs. In these roles, he focused on an array of economic, budget, and foreign policy issues, such as the US involvement in multilateral institutions, including the World Bank.
Malpass has served on the boards of the Council of the Americas, Economic Club of New York, and the National Committee on US–China Relations. Malpass earned his bachelor’s degree from Colorado College and his MBA from the University of Denver.  He undertook advanced graduate work in international economics at the School of Foreign Service at Georgetown University.
The World Bank president is chair of the boards of directors of the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA). The president is also ex officio chair of the boards of directors of the International Finance Corporation (IFC), the Multilateral Investment Guarantee Agency (MIGA), and the Administrative Council of the International Centre for Settlement of Investment Disputes (ICSID).