UNITED NATIONS: The global community has witnessed the first increase in extreme poverty in 20 years, with inequality surging as successive crises such as the COVID-19 pandemic have reversed progress in social development, according to a UN report highlighted by Xinhua.

According to Azerbaijan State News Agency, while macroeconomic recoveries are underway, extreme poverty persists, particularly in countries experiencing special situations, revealing deep-rooted structural vulnerabilities. As indicated in the World Social Report 2024, titled “Social Development in Times of Converging Crises: A Call for Global Action,” extreme poverty levels by 2022 had returned to pre-pandemic conditions in most nations, except for low-income countries. The report was released by the UN Department of Economic and Social Affairs.

The report further noted that unemployment rates in low-income countries remain high, with the employment gap rate climbing from 20 percent in 2018 to 21 percent in 2023, thereby exacerbating global
income and wealth inequalities. In 2022, the wealth distribution was stark, with the poorest half of the world’s population owning only 2 percent of global wealth, while the richest 10 percent controlled 76 percent.

The report warns that ongoing crises could result in a cumulative economic output loss exceeding 50 trillion U.S. dollars between 2020 and 2030, indicative of missed opportunities for investing in social development. As countries gradually recover from various crises, there is a chance to mitigate the long-term impacts on social development and foster more resilient societies.

The report underscores the urgent need for international action to support national initiatives aimed at addressing setbacks from recent global crises and to prevent future shocks from escalating into crises. It stresses the importance of reforming and refocusing international development finance to bolster country-level responses to global crises and to create the necessary fiscal space for driving social progress.

Addit
ionally, it examines strategies to alleviate the debt burdens of developing nations, suggesting that official development assistance through grants and concessional loans, short-term meaningful debt relief, and strengthening the sovereign debt architecture in the long term could foster social development.

“This report highlights the essential role of multilateral action in supporting national-level efforts to find fiscal space to combat poverty, generate employment, and ensure equitable opportunities for all,” stated Li Junhua, UN Under-Secretary-General for Economic and Social Affairs.

The World Social Report serves as the flagship publication of the UN Department of Economic and Social Affairs, addressing major social development issues and offering analysis on significant development trends at both the national and international levels.