The poorest countries in the world have higher debts than in 2006, study reveals

Of the 26 most impoverished nations in the world, 40% of people suffer from poverty, reaching the highest level of debt since 2006. Because of this situation, citizens of these countries are more exposed to natural disasters and other types of vulnerabilities, according to the new report released by the World Bank on Sunday. The conclusion of this report is that these economies are currently experiencing more financial difficulties in the period before the Coronavirus pandemic, despite the fact that much of the world has reestablished itself financially after the pandemic. The release of this report came a week before the World Bank and IMF meetings began in Washington. This report also detects that there is a great delay in efforts to end extreme poverty and emphasizes the work of the World Bank to be able to raise 100 billion dollars in revenue to replenish its financing fund for the nations that reach the most high level of poverty. This institution with its name translated into Portuguese is called the International Development Association, known in English by the acronym IDA.

Study reveals that the 26 surveyed are more dependent on help

All 26 countries studied in this report, which have an annual per capita income of less than $1,145, are increasingly dependent on IDA grants and loans at near-zero interest rates, as the World Bank reports that market financing is practically at an end. The loss has an average rate compared to GDP, of 72% and is the highest in the last 18 years and half of the countries surveyed are experiencing difficulties with regard to the debts they have and have a high probability of this happening. .

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_{Chief economist Pierre Olivier in front of the IMF logo (Photo reproduction: Oliver Douliery/Getty Images Embed)}

Most of these countries are involved in armed disputes

Most of these countries with high financial losses are countries in Sub-Saharan Africa, which is the southern part of the Sahara Desert and include countries ranging from Ethiopia to Chad and Congo. This list also includes countries such as Yemen and Afghanistan. Of these nations, two thirds of those included in the report are in extreme poverty, are in armed conflict or there is some type of obstacle to maintaining order due to social and institutional weakness, which ends up inhibiting investment from abroad and Most of them export commodities, revealing several cycles of decline and rise, as stated in the report.

Featured photo: Employee walking at the World Bank headquarters (Reproduction: Win McNamee/Getty Images Embed)