Question: What are the social consequences of the recent economic crisis in the world?

What steps can be taken to address them in the future? Answer: The world economy is mired in the most severe economic and financial crisis since the Great Depression, according to the UN which is having a profound impact on many countries in terms of addressing social challenges. Moreover, these challenges have been social challenges have been compounded by the rising fuel and food prices as well as political upheaval and armed conflicts in many parts of the world.

Governments find themselves constrained, with a contracting fiscal space for social policies. Policymakers face tremendous challenges to protect social expenditures and to provide necessary social services and transfers, which are also critical to achieving the Millennium Development Goals (MDGs). Pensions are under severe strain because of the collapse of capital markets. People around the world have lesser access to social services, benefits, remittances and credit.

According to World Bank estimates, 45 million people fell into extreme poverty and as a result 400,000 children died in 2009. This comes on top of the vulnerability created by the food and energy crisis, which pushed more than 130 million people into poverty in 2008. 2009 also saw urban slums triple, and 50 per cent of men and women globally remaining below two US dollar a day poverty line. In addition, the number of unemployed increased from 170 million in 2007 to nearly 200 million in 2009. In addition, the quality of jobs is also under threat with an estimated 58% of the population in developing countries in vulnerable employment according to the ILO.