The Covid-19 pandemic may undo years of progress made on anti-poverty efforts and increase inequality across the world.
Robert Palmer, Head of Tax Justice UK, shared an article on how the Covid-19 pandemic will widen inequality unless appropriate actions are taken, according to Kristalina Georgieva, the International Monetary Fund’s (IMF) managing director.
She noted that the pandemic threatens to affect the most vulnerable countries and push millions into poverty.
Georgieva added that the pandemic may cause inequality by leading to reduced exports, capital inflows, and remittances, which will impact more than 70 countries.
She recommends four approaches that can help in addressing these issues including making health a priority to ensure the handling of the pandemic.
Increased spending on various areas such as education and curbing corruption apart from transitioning towards a low-carbon digital economy will also help in addressing the inequality.
Georgieva also noted that rich countries should increase aid and resources in the form of grants, loans and relief to poor countries.