Poorest countries in worst financial shape since 2006, World Bank says
Al JazeeraOCT 25 2024
A recent World Bank report has warned that the 26 poorest countries, which are home to 40% of the world’s poorest population, are currently facing their worst financial conditions since 2006.
The organization says that these countries, many of which are in sub-Saharan Africa, are currently dealing with massive debt problems, conflicts, economic instability, and vulnerabilities to natural disasters.
The report also detailed how, while the rest of the world has largely economically rebounded since the outbreak of COVID-19, many of these countries are even poorer now than they were before the pandemic.
Since its inception, the World Bank has played an instrumental role in global economic development. The investments from the bank play a crucial role in global infrastructure projects and some of its initiatives play critical roles in helping fragile and conflict-stricken states. This essential work must continue.
The World Bank and its policies are not devoid of criticism and controversy. The bank's loan policies contribute to a damaging cycle of loan dependency, in which recipient countries become continuously dependent on external financing. Additionally, the bank's neoliberal principles are extremely Western-centric, contributing to this uneven power structure between the global south and the rest of the world.