"Cost of Living Crisis in Developing Countries" report

Tags: International News

On July 14, 2022, the United Nations Development Program (UNDP) published its "Cost of Living Crisis in Developing Countries" report.

About the report

• Title - Addressing the crisis of cost of living in developing countries: Poverty and vulnerability estimates and policy responses.

Objectives of the report

• It estimates the potential impacts of food and energy inflation on global poverty and vulnerability.

• According to this report, the global livelihood crisis is pushing another 71 million people into extreme poverty in the world's poorest countries.

• An analysis of more than 159 developing countries showed that rising prices of key commodities in 2022 are already troubling parts of sub-Saharan Africa, Asia and the Balkans.

• The report warns that the cost of living crisis is pushing millions of people into poverty and hunger at an alarming pace.

UNDP recommendation

• According to the UNDP, targeted cash transfers by governments will prove to be more "equitable and cost-effective" than broad subsidies on energy and food prices.

• UNDP has called for corresponding action. It has asked to provide direct cash transfer to vulnerable people. It also asked wealthy nations to further expand the Debt Service Suspension Initiative (DSSI), which they set out to help poor countries during the COVID-19 pandemic.

About United Nations Development Program (UNDP) 

• UNDP is a United Nations body, which helps countries to eliminate poverty and achieve sustainable economic growth and human development.

• It is headquartered in New York City, and has offices in 170 countries.

• UNDP is the largest development aid agency of the United Nations.