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JAKARTA, KOMPAS.com - The World Bank estimates, global economic crisis has resulted in about 50 million people below the extreme poverty, with incomes below the 1.25 dollars per day, in 2009.
A press release received by the World Bank in Jakarta said, that number is expected to swell to 64 million by the end of the end of 2010.
In fact, according to the international financial institutions, with the rapid economic recovery, as many as 71 million people will still live below the extreme poverty in 2020.
Meanwhile, the Independent Evaluation Group (IEG), which is under the auspices of the World Bank, states that financial institutions have been instrumental in overcoming the global economic crisis, namely by trying to achieve three objectives, namely to support the most vulnerable, maintaining long-term infrastructure investment , and retain potential growth of the private sector.
In doing so, the World Bank is reported to have issued a commitment to 128.7 billion U.S. dollars and issued a record 80.6 billion U.S. dollars during fiscal years 2009 and 2010, more than any other international financial institutions.
IEG Evaluation Director General said Vinod Thomas, World Bank Group has responded appropriately to the nature of the crisis, namely by implementing a fiscal expansion to mengompensasikan sharp decline in trade and private capital flows.
Financing from the World Bank Group and other international financial institutions has helped the global effort to stave off what could be called a global economic downturn more severe.
"The next challenge is the emergence of fiscal ketidakseimbagan, higher debt levels, and financial sector vulnerabilities and ensuring the increase in spending will obtain sustainable results," he said.
IEG report was a real-time assessment, which evaluates the results immediately and become the input to the World Bank's ongoing efforts to address the effects of the crisis.
The report also shows that the World Bank also must maintain an active policy dialogue with various countries, among others, for they have greater leeway in using financial instruments to respond to the crisis.
In addition, an increasing number of poverty due to financial crisis was also seen as major challenges to be faced.
Sunday, November 21, 2010 11:22 pm
Source : ANT
Editor: Benny N Joewono
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