ISLAMABAD: According to the World Bank’s review of the year, 2022 was a year of uncertainty because of the loss of education, global inflation, supply chain disruptions, and other global challenges that remind us that the effects of the Covid-19 pandemic continue to linger.
The social and economic effects of climate change continue to be brought to light by an increase in the severity of natural disasters. Climate impacts worsened as nations began to envision a post-pandemic world in 2022: Millions were affected by droughts in China and the Horn of Africa, and Europe experienced scorching heat waves and its worst drought in 500 years. Extreme floods in Pakistan killed hundreds of people and displaced millions.
Global development faced a crisis in 2022 as an unstable and uneven economic recovery emerged. Global debt rose and progress on the global poverty agenda reversed as a result of slower growth.
A worldwide immunization exertion assisted nations with starting rising up out of the pandemic and returned huge number of kids to the homeroom, yet the enduring effects from ongoing learning misfortunes could resound for a really long time. Climate change and Russia’s invasion of Ukraine caused food, fuel, and fertilizer prices to rise significantly throughout the year, contributing to food inflation and food insecurity.
Global growth is still being hampered by the convergence of crises that defined 2022. After a recovery from the recession in 1970, the global economy is currently experiencing its sharpest slowdown since, with consumer confidence already experiencing a much sharper decline than in the lead-up to previous global recessions.
The three largest economies in the world have experienced a sharp slowdown. Given the circumstances, the global economy could enter recession even if it takes only a small hit over the next year.
The Covid-19 pandemic caused the greatest setback to efforts to reduce poverty worldwide in decades, and recovery has been uneven. As many as 685 million people could be in extreme poverty by the end of 2022, making it the second worst year for reducing poverty in the past two decades (after 2020).
A quick recovery has been hampered by rising food and energy costs, which are fueled by climate shocks and conflicts like the war in Ukraine, in addition to the pandemic’s lingering effects. It is presently projected that 7% of the total populace — approximately 574 million individuals — will in any case battle in outrageous neediness in 2030 — far shy of the worldwide objective of 3% in 2030.
The debt crisis in developing nations has gotten worse over the past year. Over the past decade, developing nations’ overall debt levels have increased, with 60% of the world’s poorest nations either in debt distress or at risk.
The poorest people in the world are unable to make essential investments in education, health care, climate action, economic reform, and other crucial development priorities due to their excessive debt. Perhaps even more significant is the significant shift in debt composition since 2010, with private creditors taking on a larger role.
According to the 2022 International Debt Report, private creditors held 61 percent of low- and middle-income countries’ public and publicly guaranteed debt by the end of 2021.
Food insecurity dramatically increased worldwide in 2022. Many agricultural products and inputs, like fertilizers, have seen significant price increases as a result of the global economic downturn, the war in Ukraine, high inflation, disruptions in supply chains, and other factors. The World Bank Group has provided $30 billion over 15 months to address food insecurity as a response to this situation.
By enhancing food safety, promoting “nutrition-sensitive agriculture,” and enhancing food security, the World Bank Group and its partners continue to build food systems that can feed everyone, everywhere, every day. The bank is a major source of funding for food systems. IBRD/IDA made $9.6 billion in new commitments to agriculture and related sectors in fiscal year 2022.
The World Bank Group increased its support for countries working together to address climate change and development needs: delivering a record-breaking $31.7 billion in climate finance, the most it has ever received in a single year. The World Bank contributed $26.2 billion, of which 12.9 billion specifically supported investments in resilience and adaptation.
One of the biggest shocks to the world’s energy markets in the first half of 2022 sent energy prices skyrocketing, exacerbated energy shortages and concerns about energy security, and slowed progress toward universal access to affordable, reliable, sustainable, and modern energy by 2030. At the current rate, 670 million people will remain without electricity in 2030, 10 million more than was predicted last year.
