Overlapping Crises Hinder Global Social Development and Poverty Reduction

Without investing in social development and crisis response, vulnerable communities are more susceptible to the impacts and stressors put on by multiple crises. Credit: UN Women_Ryan Brown
  • by Naureen Hossain (united nations)
  • Inter Press Service

The United Nations Department of Economic and Social Affairs (UN DESA) launched the 2024 edition of the World Social Report on October 17. Titled ‘Social Development in Times of Converging Crises: A Call for Global Action', the report discusses the effects of multiple crises and shocks on countries' social development and their capacity to handle those shocks through social protections or lack thereof. It posits that while there has been an upward trajectory in development and economic growth in some parts of the world after the effects of the COVID-19 pandemic and inflation, many developing countries are still struggling to reach their development goals or to reduce the rate of extreme poverty to even pre-pandemic levels.

Overlapping crises, especially those caused by extreme weather, may increase in frequency and intensity. The shocks from these crises will be, or are, felt across the world rather than contained to one country or region as a result of the networks that connect across countries and systems. The DESA report cites the example of global warming and the prediction that every region will experience changes in their national climate systems. The increasing risk of extreme weather such as hurricanes and prolonged droughts will not only impact countries directly affected, but this also poses a threat to agricultural production and food security.

The report shows that although there is a better understanding of the impacts of these crises, preparedness has not yet caught up. Information on early warning and preventative systems is not consistently made available or is otherwise unclear on how effective they are.

In the wake of the COVID-19 pandemic, many countries bolstered their social protections; however, gaps remain, which undermine social development in times of crisis. As the report reveals, only 47 percent of the world's population has access to at least one social protection benefit, meaning nearly half the world's population of 8.1 billion do not access social protections. The disparity continues as the report indicates that in higher-income countries, 85 percent of the population is covered, while in lower-income countries, it is only 13 percent. Factoring in gender, a new report from UN-Women revealed that 2 billion women and girls globally do not have access to social protections.

Continued crises and shocks to social development disproportionately affect vulnerable communities as they face increased risks of poverty, food insecurity, wealth inequality and education loss, which are only exacerbated with the limited reach or lack of access to social protections.

One area in which this is evident is in unemployment rates, which have only increased over time. The employment gap increased from 20 percent in 2018 to 21 percent in 2023. In 2022, the poorest half of the global population owned only 2 percent of the world's health. These are indicators of the increase in existing income and wealth inequalities, especially in developing countries with pre-existing high levels of inequality.

For countries to build resilience is now more critical than ever, which the report argues can be achieved more fully through international cooperation. Otherwise, actions taken at the national level will be limited.

"I think in most countries, governments' priorities are actually to reduce poverty and improve people's lives. It's just that in order to do so, they need to achieve a particular level of growth," said Shantanu Mukherjee, Director of Economic Policy and Analysis, UN DESA. "So often it becomes a question of which is going to come first. What we're seeing in this report is that this is too narrow-minded of a view. That you can invest in people in order to get higher growth in the future because you're improving resilience. You're improving their capacity to actually contribute in the future."

The report concludes with recommendations that countries could adopt to reinvigorate national actions for social development, such as expanding and strengthening social protections and accelerating work towards the Sustainable Development Goals. Global cooperation can be strengthened through establishing cross-country collaborative solutions and a knowledge base for risk governance.

Making improvements towards global financing is also one of the proposed recommendations from the report. Easing debt restrictions on developing countries, for instance, would ensure the flow of money, especially they spend far more on paying off their debts than paying towards social development. According to Mukherjee, this has been achieved before, and there are conversations among major creditors to take measures to ease debt restrictions.

However, in the present day, not only are the challenges more complex, now more parties are  involved. In addition to countries and financing institutions such as the World Bank and international development banks, the private sector can also be involved as countries can raise funds on the international market, which need to be paid back, he said.

"Now you can imagine that when there are a lot of people who have lent money, no one wants to be the first person to say, ‘Okay, I'll take... I'll withdraw my claim for a little bit until things get better', because then everybody else will say, "Country X is taking a little bit of time; why don't you repay us because country X is standing back?". So these coordination mechanisms and good kinds of agreements were set up, and I think they need to be revitalized," said Mukherjee.

The report and its recommendations come in the wake of the Summit of the Future and the ratification of the Pact for the Future, where member states made the commitment to take concrete measures towards development and preparedness for current and future generations, thinking beyond the 2030 Agenda. Upcoming global meetings such as the Fourth International Conference on Financing for Development, scheduled for June-July 2025 in Spain, and the the Second World Summit of Social Development, scheduled for November 2025 in Qatar, will be critical opportunities for the international community to reach consensus on different areas of social policy.

"Growing insecurity together with high inequality and persistent social exclusion are eroding the social fabric and thus the ability of countries and of the international community to act collectively towards common goals, including achieving the SDGs to address climate challenges," said Wenyan Yang, Chief, Global Dialogue for Social Development Branch, UN DESA.

"So the Second World Summit for Social Development is an opportunity to build new global consensus on social policies and actions to create momentum for the implementation of the 2030 Agenda and to fulfill the promises that we made to people in 1995."

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© Inter Press Service (2024) — All Rights ReservedOriginal source: Inter Press Service

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