Russia Ukraine War May Push Over 40 Million People Into Extreme Poverty: Report

Russia-Ukraine News: According to a report by the Centre for Global Development (CGD), the war may push at least 40 million people into extreme poverty.

New Delhi: The impact of the Russia-Ukraine conflict may be more widespread than it is being anticipated. According to a report by the Centre for Global Development (CGD), the war may push at least 40 million people into extreme poverty. The rise in commodity prices including wheat, oil and fertilisers might deepen the crisis, the report added.

The Russia-Ukraine war has been going on for 24 days now. For the unversed, Russia exports 19 per cent of the global wheat supply and Ukraine exports 10 per cent of the total wheat. The Russian invasion of Ukraine has sent this 29 per cent in a lot of uncertainty, pushing the prices upwards.

On the other hand, Russia and Belarus account for one-sixth of the world’s fertiliser exports. The prices of fertilisers have also been rising. The petrol prices, hit 10-year high levels as the war peaked and gas prices too surged to highest levels in decades.

Higher Impact on Lower-Income Countries

According to the report, countries that have a higher dependency on wheat and other imports will be hit the hardest by the price hikes. At least 24 of the low and middle-income countries have a high dependence on wheat imports.

In India too, the impact will be seen as 80 per cent of the oil requirements of the country as met through imports. The high volatility in the oil prices is sure to impact the pockets of the government.

The report also stated that price hikes will not only impact the people directly but will also affect the safety net laid for the poor. Schemes like cash transfers, food vouchers and school meal programmes will be worst affected.

According to the report, there are 32 such countries globally, that offer such programmes. In long run, this hurdle would prove to be draconian as it will give rise to malnourishment and stunting.