Food spike due to Russian invasion will push 40 million people into extreme poverty

The Center for Global Development (CGDEV) stated that the huge increase in food and energy prices caused by the russian invasion of Ukraine will push more than 40 million people into extreme povertyand warned against curbing exports and apply sanctions to Russian food production.

In an analysis blog, the Washington-based think tank said food prices since the start of the conflict have risen above the price peaks of 2007 and 2010.

In addition, he cited World Bank research showing that the 2007 peak may have pushed up to 155 million people into extreme poverty, and other research showing the 2010 episode pushed 44 million into extreme poverty.

“The price increases observed to date are already of a similar magnitude to those in 2010, and our analysis suggests that at least 40 million people will be pushed into extreme poverty by the 2022 price spike,” the researchers wrote. of the CGDEV.

The World Bank defines extreme poverty as having to live on less than US$1.90 a day.

The researchers noted that the most immediate concern was for Ukraine’s and Russia’s direct wheat customers, which together account for more than a quarter of global wheat exports.

They include Egypt, Indonesia, Bangladesh, Pakistan, Azerbaijan and Turkey, but prices will rise around the world as importers compete for supplies.

Households in low-income countries spend almost half of their budget on food, and rising prices will force “difficult choices between food and other necessities.”

The CGDEV blog urged development agencies and international financial institutions to act quickly to respond to a clear increase in humanitarian needs around the world, and rich governments to provide supplementary funding to institutions well in advance of the next food crisis.