The World Bank’s COVID Impact Findings, A Summary
The coronavirus pandemic has had a significant impact on the everyday lives of all of humanity, with the unfortunate potential to have a long-lasting impact on the poorest, even after the worst of the pandemic is over.
The global scale of COVID-19 and the severity of its impact on health, economies, development, education, mental health and equality have been devastating. 2020 marked the first year in decades to have seen a reversal of the progress of human development.
The World Bank has reported findings on some of the most significant areas of life the pandemic has impacted, which is summarised below.
Between an estimated 88 to 115 million additional people will be pushed into extreme poverty. Most will be in South Asia and sub-Saharan Africa.
Lockdowns intended to stem the spread of the virus have caused likely the steepest decline in economic activity since World War II, with the most vulnerable hardest hit.
An important source of income for many countries, remittances have fallen sharply — with estimates of a 14% fall by the end of 2021. Fewer remittances have coupled with historically low levels of migration to strain local economies in developing countries. Again: the most vulnerable have borne the brunt of the strains.
While layoffs have been lower than anticipated, small, medium-sized, and large companies have reduced working hours as demand has fallen. Workers worldwide are facing lower incomes, stretching family budgets thinly and placing pressure on the chances of a quick recovery.
Healthcare costs cause financial hardship for almost one billion people and force almost 90 million into extreme poverty annually. COVID-19 is likely to have dramatically exacerbated that dynamic, serving as a blunt warning that many healthcare systems are dysfunctional and too expensive for most people.
Around 1.5 billion children have endured interruptions to their education due to school closures. The impact of that will likely take decades to play out. Remote learning has proven a poor substitute for in-person, traditional earning, and has further exposed the dramatic digital divide.
The lack of internet access and infrastructure in the poorest countries has meant a reduced flow of information and access to important services for the world’s poorest. Internet access is now as important as access to electricity and clean water and the digital divide needs to be urgently addressed.
The gender divide has also been exposed, as women, who are overrepresented in tourism, retail, and the informal economy, were more likely to be laid off, and girls assumed care-related tasks. Concerning estimates suggest 11 million girls could end up permanently lost from education.
The coronavirus has been a seismic shock to the world, and the sooner the full rollout of an equitable, worldwide vaccination drive is underway, the sooner we can start to repair the calamitous damage the coronavirus has caused.
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