Afghanistan on brink of universal poverty, needs urgent economic response program: UNDP

Owing to the current economic instability in Afghanistan, 97 per cent of the country could plummet into serious poverty by the mid of 2022, warned a study conducted by the United Nations Development Program (UNDP). Currently, the country is dwindling on the "brink of universal poverty", the UNDP said in a statement. Further, it called for an immediate need for an economic response program to counter the ongoing crisis in the war-torn nation.

"Half of the population is already in need of humanitarian support. This analysis suggests that we are on the course of rapid catastrophic deterioration in the lives of Afghanistan's most vulnerable people," Kanni Wignaraja, UN Assistant Secretary-General and UNDP Director of the Regional Bureau for Asia and the Pacific.

The study published by the UNDP analysed as many as four political scenarios of "escalating intensity and isolation" that indicated the real Gross Domestic Product (GDP) contraction by 13.2 per cent. The estimated percentage hinted that at the current rate the poverty graph would rise by at least 25 per cent. The UNDP report also stressed the need for urgent humanitarian aid to restore normalcy after the "catastrophic deterioration in the lives of Afghanistan's most vulnerable populations".

"We are facing a full-on development collapse on the top of humanitarian and economic crisis," said Kanni Wignaraja said in a statement.

UNSC lists causes that may lead to alarming poverty

As per the UNSC report, Afghanistan's current poverty rate stands at 72 per cent, which may balloon following the two-month trade interruption and four percent decrease in capital spending efficiency. This could also be bolstered by the disruptions in international connectivity along with the prolonged after-effects of drought, COVID-19 and an unstable government. Besides, the current political transition and Taliban-induced violence have also left the country with falling foreign reserves, collapsing public finances and increased pressure on the banking system.

UNDP offers relief packages

To battle the latest economic slump in the country, the UNDP has announced the release of combined packages to "improve the immediate living conditions of the vulnerable communities." Additionally, it has also proposed funds to safeguard rights of women. As per the UNDP's statement, the packages focus on essential services, local livelihoods, basic income and small infrastructure.

The packages would also ensure "cash-for-work schemes" and grants for small and medium enterprises (especially women-run businesses). The sanctions would also allow a temporary monthly transfer of cash to accounts of people with disabilities and elderly citizens.

The sanctions will be made available to the Afghan population through NGOs and Community Groups working in the area. Speaking at a presser Wignaraja said that the Local Area-Based Program "aims to contribute to improving the lives of the most vulnerable." It would also stem the displacements that could "further compound the situation," UN Assistant Secretary-General concluded.

Image: AP