36% of developing countries’ population may slide into poverty, ILO warns

Over 36 percent of the emerging and developing world live on a daily income of less than US$ 3.10 purchasing power parity (PPP), which push them into poverty bracket.

According to the latest report of the ‘World Employment and Social Outlook (WESO) 2016 – Transforming jobs to end poverty’ of the International Labour Organization (ILO), some US$ 600 billion annually or nearly US$10 trillion over the next 15 years is what is needed to eradicate extreme and moderate poverty globally by 2030.

The report concludes that income transfers alone emphasizing that more and better jobs are crucial to achieving ending widening of the poverty-stricken population cannot solve the problem of persistent poverty.

The reported noted that is estimated that almost a third of the extremely or moderately poor in developing economies have jobs.

It pointed out that the most employment available in the developing countries is vulnerable in nature: they are sometimes unpaid, concentrated in low-skilled occupations and, in the absence of social protection, rely almost exclusively on labour income.

It also noted that among developed countries, more workers have wage and salaried employment, but that does not stop them from falling into poverty.

The report warned that the global deficit in quality jobs and deteriorating economic conditions in a number of regions threatens to undo decades of progress in poverty reduction.

Commenting on the findings of the report, the Director-General of ILO, Guy Ryder observed that if the world and stakeholders are serious about the 2030 Agenda, the quality of jobs available in all nations must come under strict focus.

He said: “Clearly, the Sustainable Development Goal of ending poverty in all its forms everywhere by 2030 is at risk. If we are serious about the 2030 Agenda and want to finally put an end to the scourge of poverty perpetuating across generations, then we must focus on the quality of jobs in all nations.”

On his part, the ILO Special Advisor on Social and Economic Issues, Raymond Torres said: “Right now, while 30 per cent of the world is poor, they only hold two per cent of the world’s income. Only through deliberately improving the quality of employment for those who have jobs and creating new decent work will we provide a durable exit from precarious living conditions and improve livelihoods for the working poor and their families. ”

The study also found that high levels of income inequality reduce the impact of economic growth on poverty reduction.

“This finding tells us that it is past time to reflect on the responsibility of rich nations and individuals in the perpetuation of poverty. Accepting the status quo is not an option,” Torres added.

The ILO estimates on poverty reduction come after a sustained period of global progress, with the share of population living in extreme poverty falling from 46.9 per cent in 1990 to just fewer than 15 per cent among 107 emerging and developing countries.