Crisis hitting poor hard in developing world, World Bank says

US: The spreading global economic crisis is trapping up to 53 million people in poverty in the developing world and poses a serious threat to achieving internationally agreed targets of poverty reduction, the World Bank Group said on Thursday.

New estimates for 2009 suggest that the economic downturn will cause 46 million more people to live under 1.25 dollars a day, according to the bank.

An extra 53 million will stay trapped on less than 2 dollars a day on top of the 130-155 million people pushed into poverty in 2008 because of soaring food and fuel prices. These new forecasts highlight the serious threat to the realization of the UN Millennium Development Goals (MDGs), which set specific targets to reduce poverty by 2015.

The new research shows that markedly lowered economic growth rates will significantly retard progress in reducing infant mortality.

If the crisis persists, 1.4 to 2.8 million more children may die during 2009 to 2015. "The global economic crisis threatens to become a human crisis in many developing countries unless they can take targeted measures to protect vulnerable people in their communities," World Bank Group President Robert B. Zoellick said.

"This is a global crisis requiring a global solution. The needs of poor people in developing countries must be on the table," he said.

In a policy note issued in the run up to the Group of Seven finance ministers meeting on Saturday, the World Bank said almost 40 percent of 107 developing countries were highly exposed to the poverty effects of the crisis and the remainder was moderately exposed, with less than 10 percent facing little risk.

Zoellick recently called for the establishment of a "Vulnerability Fund" in which each developed country devoted 0.7 percent of its stimulus package to the fund.

WASHINGTON, Friday, Xinhua