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1、UNITED NATIONS DEVELOPMENT PROGRAMME Mitigating Poverty:Global Estimates of the Impact of Income Support during the Pandemicby Johanna Fajardo-Gonzalez, George Gray Molina, Mara Montoya-Aguirre, Eduardo Ortiz-Juarez UND P GLOBA L POLICY NETWORK Mitigating Poverty:Global Estimates of the Impact of In
2、come Support during the Pandemicby Johanna Fajardo-Gonzalez, George Gray Molina, Maria Montoya-Aguirre and Eduardo Ortiz-JuarezUNDP is the leading United Nations organization fighting to end the injustice of poverty, inequality and climate change. Working with our broad network of experts and partne
3、rs in 170 countries, we help nations to build integrated, lasting solutions for people and planet. Learn more at or follow at UNDP.The views expressed in this publication are those of the author(s) and do not necessarily represent those of the United Nations, including UNDP, or the UN Member States.
4、Copyright UNDP July 2021 All rights reservedUnited Nations Development Programme 1 UN Plaza, New York, NY 10075, USAMitigating Poverty:Global Estimates of the Impact of Income Support during the Pandemicby Johanna Fajardo-Gonzalez (johanna.fajardo-gonzalez), George Gray Molina (george.gray.molina),
5、Maria Montoya-Aguirre (maria.montoya-aguirre) and Eduardo Ortiz-Juarez (eduardo.ortiz.juarez) 1AbstractThis paper reconstructs the full welfare distributions from household surveys of 160 countries, covering96.5 percent of the global population, to estimate the pandemic-induced increases in global p
6、overty and provide information on the potential short-term effects of income-support programmes on mitigating such increases. Crucially, the analysis performs a large-scale simulation by combining the welfare distributions with the database of social protection measures of Gentilini et al. (2021) an
7、d estimates such effects from 72 actual income-support programmes planned or implemented across 41 countries. The paper reports three findings: First, the projection of additional extreme poverty, in the absence of income support, ranges between 117 million people under a distributive-neutral projec
8、tion and 168 million people under a distributive-regressive projection which may better reflect how the shock impacted poor and vulnerable households. Second, a simulation of the hypothetical effects of a temporary basic income with an investment of 0.5 percent of developing countries GDP, spread ov
9、er six months, finds that this amount would mitigate to a large extent, at least temporarily, the increase in global poverty at both the $1.90- and $3.20-a-day thresholds, although poverty would still increase significantly in the poorest regions of the world. Third, the analysis of income-support p
10、rogrammes in 41 countries suggests that they may have mitigated, at least temporarily, the overall increase in poverty in upper-middle income countries but may have been insufficient to mitigate the increase in poverty at any poverty line in low- income countries. Income support likely mitigated 60
11、percent of the increase in poverty at the $3.20-a- day threshold and 20 percent at the $5.50-a-day threshold among lower-middle-income countries. This pattern is correlated with the amount of social assistance and social insurance per capita payments made in each country.1 Johanna Fajardo-Gonzalez i
12、s Policy Specialist, Economist at the Strategic Policy Engagement Unit (SPE) at the UNDP Bureau for Policy and Programme Support (BPPS); George Gray Molina is the Head of Strategic Engagement and Chief Economist at BPPS; Maria Montoya-Aguirre is Economic Analyst at SPE-BPPS; and Eduardo Ortiz-Juarez
13、 is Economist at SPE-BPPS and Researcher at Kings College London.The authors are grateful to Jacob Assa, Nathalie Bouche, Lars Jensen, Luis F. Lopez-Calva, Marcela Melendez, Mansour Ndiaye, Christian Oldiges and the RBLAC Chief Economist Office for their valuable feedback. Special thanks to Anna Ort
14、ubia, Dylan Lowthian, Lesley Wright and Samantha Happ for their expert work on communications. The findings, interpretations and conclusions expressed in this paper are entirely those of the authors.IntroductionA key question arising from the pandemic policy response is: Was it robust enough to miti
15、gate income and jobs losses around the world? While it is still early to adequately assess the welfare effects of multiple policy measures, this paper provides estimates of the potential influence of income support in mitigating, at least temporarily, increases in poverty headcount rates vis-vis a p
16、ure pandemic-induced shock scenario.2 Clearly, policy responses around the world included more than income supportthey included tax deferrals, service payment waivers and loans and guarantees, as well as various work furlough and employment insurance programmes, among other measures. But it is also
17、evident that income support programmes were ubiquitous and made up a significant portion of the response.Twelve months ago, two of the co-authors of this paper analysed the costs and implementation challenges of a temporary basic income (TBI) targeting poor and vulnerable people across the developin
18、g world (Gray Molina and Ortiz-Juarez, 2020). This paper revisits that exercise and provides counterfactual information on the potential short-term effects that income support has on mitigating the increase in poverty, and the associated financial costs, had countries implemented TBI schemes in resp
19、onse to the shock. To estimate the pandemic-induced increase in poverty and perform the simulations, the analysis retrieves the distributions of per capita income and consumption from household surveys in 160 countries (128 developing countries and 32 advanced economies) that covered about 96.5 perc
20、ent of the worlds population in 20192020. But the paper also dives into the actual response. Specifically, the analysis exploits these welfare distributions and the database of social protection measures of Gentilini et al. (2021) to undertake a systematic, large-scale assessment of the potential sh
21、ort-term effects on mitigating the increase in poverty of 72 cash-based programmes across 41 countries, which together concentrate a fourth of the global population and represent a fifth of the total number of countries that have planned or implemented income- support measures since March 2020.There
22、 are three main findings derived from the simulations. First, spending equivalent to 0.5 percent of developing countries GDP, for a monthly total of $58.1 billion (2011 PPP) spread over six months, would have sufficed to mitigate, at least temporarily, the increases in global poverty at the $1.90- a
23、nd $3.20-a-day poverty lines. Despite the aggregate mitigation, the number of people pushed below these poverty lines because of the crisis could still be significant within the poorest regions of the world. It is important to emphasize that the estimates rely on a distribution-neutral economic cont
24、raction. This seems unlikely, and2 While this paper focuses on monetary poverty, it acknowledges that other dimensions of poverty such as education, employment, food security or safety are likely sensitive to the existence and timing of the income support provision.it might well be that the incomes
25、of some segments of the population contracted more than proportionally during the crisis; e.g., low- and middle-skill workers, women, or the informally employed (see, e.g., ILO 2020, 2021; IMF, 2021a). Although there is no consistent information available on the incidence of the income contraction a
26、cross households, the analysis also simulated the mitigating effects of TBI schemes under an ad hoc regressive contraction that hits proportionally harder the bottom 60 percent of each countrys population, which concentrates, on average across-countries, most of those living in poverty and at high-r
27、isk of falling into poverty (see section 4). The results suggest that the above investment could have helped to mitigate an important share of the increase in poverty, but certainly not all of it.Second, actual income support programmes potentially mitigated the short-term increase in poverty in a s
28、ample of 41 countries. Although this result is driven by upper-middle-income countries that were able to roll out generous income support, the estimations suggest that low- and lower-middle-income countries may not have provided transfers large enough to fully mitigate the shock-induced increase in
29、poverty and even experienced short-term increases in their headcount rates. Finally, although there has been substantial heterogeneity in the generosity and coverage of the social protection response across countries, mostly conditional on fiscal capacity and budget adaptation, the limited effective
30、ness observed in some poorer countries suggests that there is room for action even under significant constraints. Yet, again, the success of these moderate interventions in mitigating the increase in poverty is likely fragile under a scenario in which the income contraction is harder on those at the
31、 bottom.Although with important caveats, the results presented in this paper provide some initial benchmarks on how the pandemic shock likely impacted poor and vulnerable households around the world, but also how important policy choices were in potentially mitigating those effects. The remainder of
32、 the paper is organized as follows. Section 2 reviews the evidence on the socioeconomic impacts of the COVID-19 pandemic and introduces the income support measures implemented as part of the governments policy response to this crisis. Section 3 discusses the construction of the distributions of per
33、capita income or consumption and measures the increases in poverty at different poverty lines. Section 4 estimates the potential magnitude of the mitigation of poverty increase from hypothetical and actual emergency income support around the world. Finally, Section 5 discusses some policy implicatio
34、ns and provides a conclusion.Looking back at the first pandemic yearAt the onset of the pandemic, most developing countries were riven by pre-existing inequalities that would eventually threaten the lives and livelihoods of their most vulnerable citizens. A large share of workers ininformal3 and at-
35、risk service sectors (construction, transportation, retail, tourism and hospitality), combined with absent safety nets, would soon reveal that any social distancing measures would prevent many people from earning their usual income or earning an income at all. Indeed, following the implementation of
36、 the first lockdowns, the earnings of informal workers were estimated to have contracted by 60 percent globally in the first month of the crisis, reaching an average contraction of 80 percent among the poorest countries, whereas estimates covering the whole of 2020 suggest that, relative to 2019, th
37、e loss of labour incomes had reached US$3.7 trillion globally as a result of working-hour losses (equivalent to more than 220 million full-time jobs), with lower-middle-income countries being the hardest hit (ILO, 2020a; ILO, 2021).The rapid progression of the pandemic across developing countries an
38、d the immediate stringent disruptions to peoples livelihoods that followed sounded the alarms of a potential immediate increase in global extreme poverty rates (see, e.g., Mahler et al., 2020a, 2020b; Sumner, Hoy and Ortiz-Juarez, 2020; Valensisi, 2020). While increased poverty is perhaps the most s
39、alient and visible negative economic consequence of the COVID-19 pandemic, and the focus of this paper, other critical, related indicators of social progress have also worsened. For starters, the pandemic-induced crisis has left more people food insecure worldwide. Some estimates suggests that it ha
40、s pushed the number of acutely food insecure people to 270 million in 2020, an 82 percent increase compared to pre-pandemic projections (WFP, 2020). Studies using household survey data from developing countries suggest that the main reason for this increase in food insecurity is the loss of incomes
41、resulting from strict lockdowns and restrictions to mobility,4 while such an effect is compounded by disruptions to global and domestic markets and food value chains (see, e.g., Aggarwal et al., 2020; Amjath-Babu et al., 2020; Khan et al., 2021; Mahajan and Tomar, 2021).Other analyses suggest that t
42、he effects of the pandemic are likely to exert important adverse effects on gender equality. More women than men lost their jobs or experienced a disproportionate decline in their incomes, resulting in a widening of gaps in labour market outcomes and opportunities (see, e.g., Adams- Prassl et al., 2
43、020; Foucault and Galasso, 2020; Dang and Viet Nguyen, 2021; Montoya-Aguirre, Ortiz- Juarez and Santiago, 2021). There are at least two factors behind this disparity. First, in contrast with previous crises, the coronavirus pandemic has particularly affected sectors with high female employment share
44、s (Alon et al., 2020; ILO, 2020b). Second, the demand for childcare has increased. In response to closures of schools and day-care centres, more mothers than fathers have reduced their working hours or shifted to unemployment or even inactivity (see, e.g., Andrew et al., 2020; Blundell et al., 2020;
45、 Collins et al., 2021; Sen, Zhengyun and Hao, 2020; Oreffice and Quintana-Domeque, 2021; Reichelt, Makovi and3 About 60 percent of total workers in developing countries make a living in non-agricultural informal markets (70 percent when including agriculture) (ILO, 2018; p 14).4 See, for example, ev
46、idence for China (Wang et al., 2021), Guatemala (Ceballos, Hernandez and Paz, 2021), Ethiopia (Hirvonen, de Brauw and Abate, 2021), Nigeria (Amare et al., 2020) and South Africa (Arndt et al., 2020).Sargsyan, 2021); indeed, estimates suggest that the loss of womens jobs in 2020 could reach 64 millio
47、n globally, with 86 percent moving completely into inactivity (ILO, 2021). A critical gendered outcome is that domestic violence against women was also exacerbated during the pandemic, with its rise being mainly associated to lack of employment, low social support, substance abuse, increased stress
48、and poor mental health (see, e.g., Peterman and ODonnell, 2020).There are also potentially harmful, long-lasting consequences on human capital accumulation. Children have experienced learning losses across a range of subjects, grade levels and geographical regions due to school closures.5 There is e
49、vidence that children have devoted less time to schoolwork, even though parents and schools are providing resources to support their learning process during the pandemic (see, e.g., Bacher- Hicks, Goodman and Mulhern, 2021; Jger and Blaabk, 2020; Maldonado and De Witte, 2020). Learning losses have a
50、lso been amplified due to inadequate access to technical equipment for online schooling (see, e.g., Andrew et al., 2020b; Huber and Helm, 2020). Furthermore, learning delays are much more pronounced for primary-school students and students from low-income households, implying that educational inequa
51、lities may persist in the long term (see, e.g., Engzell, Frey and Verhagen, 2020; Gore et al., 2021; Tomasik, Helbling and Moser, 2020).Finally, in terms of health-related indicators, some estimates suggest that the less advantaged groups of the population are likely to suffer high COVID-19-related
52、infections and mortality rates in the future as they often lack access to basic services and good-quality health care, and they tend to live in contexts with persistent conditions of indoor and outdoor pollution and where malnutrition, infectious diseases and other comorbidities are more prevalent (
53、see, e.g., Alkire et al., 2020; Brown, Ravallion and van de Walle, 2020; Walker et al., 2020). There are also indirect health effects that are yet to be fully addressed. Access to essential health services has been severely disrupted, presenting major threats to meeting general and special health-ca
54、re needs. Krubiner et al. (2021) summarize the evidence and report that most providers diverted to COVID-19 activities and supply chains were seriously affected. For instance, focusing on HIV services, studies report that disruptions to treatment may increase HIV deaths by 10 percent over the next f
55、ive years, with Sub-Saharan Africa being particularly affected (Hogan et al., 2020; Jewell et al., 2020). Maternal health services have been negatively affected, as well. Antenatal care visits and institutional deliveries declined markedly in Sub-Saharan Africa due to lockdowns (Shapira et al., 2021
56、), while in some Asian countries the quality of intra- and post-partum care and immunization rates experienced major reductions following the containment measures (Headey et al., 2020; KC et al., 2020).5 Patrinos and Donnelly (2021) provide a systematic review of the evidence available for developed
57、 countries.How did the world respond?Since the start of the pandemic, an ever-increasing number of countries and territories embarked on an aggressive social protection response comprised by social assistance, social insurance and labour market measures. Data from the comprehensive tracker compiled
58、by Gentilini et al. (2021) shows that by the end of March 2020, a total of 283 social protection measures were planned or implemented across 84 countries and territories, whereas by December 2020 their cumulative numbers had reached 1,414 and 215, respectively, and 3,333 measures worldwide by mid-Ma
59、y 2021. During 2020, about two-thirds of the total responses corresponded to social assistance, both cash-based and in-kind, with the former accounting for about a third of the total responses (Figure 1), and although social assistance still dominates in number of responses, the expansion in social
60、protection measures after December 2020 comprised mostly social insurance and labour market programmes.Figure 1. Evolution of the number of social protection measures, March 2020 to May 20217341107141411791024105593745837068528331032341214923542832141982732763113153784034174555441071333333Mar 20Apr
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