Economist Andy Sumner recently stated that COVID-19 could greatly increase global poverty, setting the world back 10 years and some regions back 30 years.
In talking with our global team, I’m afraid he is right. Poverty has accelerated in the last few months, and we are only beginning to see the long-term impacts of this pandemic.
This virus does not impact all of us equally. In places where malnutrition has compromised people’s immune systems, where medical systems are fragile and vastly underprepared, and in urban areas where social distancing and other preventative measures are impossible, COVID-19 poses an even more serious threat. But the most acute impact for those we serve is economic.
In Romania, a woman who sells newspapers shares that she has gone from seven newsstands to two in a matter of weeks. “Sales have dropped, and I cannot afford to hold onto employees,” she says. “We will die of hunger, all of us with small businesses.”
This is a moment for those with power and privilege to use them on behalf of others. It’s the definition of sacrifice: giving something up on behalf of another. For many people living in places of poverty, help simply cannot wait. It’s also a time to adjust plans.
In this moment, HOPE has pivoted to focus on three priorities for the people we serve:
- Immediate relief: In the past, I’ve been a critic of relief, seeing it extended long past its usefulness. But in this moment, relief is necessary. In a time when national economies are shut down, we must act quickly to extend love and relief to our brothers and sisters in need. At HOPE, the men and women we serve in savings groups are some of the most vulnerable. We have already started distributing funds through our trusted church partners to care for their immediate needs like food and healthcare.
- Extended grace: In this global crisis, we’re seeking to offer grace to the vulnerable men and women served by microfinance institutions. In this moment, we are able to step in with a “stimulus package” to care for entrepreneurs and help them weather this storm. This includes extended grace periods in country-wide shutdowns, rescheduled loan terms, and solidarity. We want to look back at this time and know we did everything possible to walk alongside families, even if it means raising extra funds, changing programmatic responses, and altering financial models. We’re committed to showing up and showing grace.
- Investment to rebuild: When economies open, entrepreneurs will need capital to restart their businesses and rebuild what has been lost. After a disaster, there is an inescapable need for recovery lending. Businesses and economies are unable to start up again without it. With that in mind, we are planning for the time when we can help people to both stabilize their businesses and help make up for the losses incurred.
The world has made remarkable progress to alleviate global poverty, and this is a moment to do everything possible to ensure we don’t give up ground. Let’s stand with our local and global neighbors in this moment of need.
Learn more at hopeinternational.org/coronavirus/covid19-response.
