Context: Recently, World Bank in its biennial report namely "Poverty and Shared Prosperity Report" mentions that Covid-19 can add around 27-40 million new poor in Sub-Saharan Africa and around 49-57 million in South Asia region.
Key findings of the report
Overall scenario

• Global extreme poverty is expected to rise for the first time in 20 years because of the disruption caused by COVID-19.
• This will exacerbate the impact of conflict and climate change, which were already slowing down poverty reduction.
• The pandemic may push another 88 million to 115 million into extreme poverty or having to live on less than $1.50 per day, resulting in a total of 150 million such individuals.

Worst affected regions

• Many of the newly poor individuals will be from countries that already have high poverty rates while many in middle income countries (MICs) will slip below the poverty line.
• Sub-Saharan Africa and South Asia, will be badly hit as per the Bank’s projections.

What needs to be done now?

• In order to reverse this serious setback to development progress and poverty reduction, countries will need to:
• Prepare for a different economy post-COVID, by allowing capital, labour, skills, and innovation to move into new businesses and sectors.

Proposed Strategy to address the issue by the World Bank

• The World Bank mentions that In order to reverse this serious setback to development progress and poverty reduction, countries will need to prepare for a different economy post-COVID, by allowing capital, labour, skills, and innovation to move into new businesses and sectors.
• Without policy actions, the Covid-19 crisis may lead to an increase in income inequality, resulting in a world that is less inclusive.
• Countries need to prepare for a different economy post-COVID, by allowing capital, labour, skills, and innovation to move into new businesses and sectors.
• To focus on foundational development problems, including conflict and climate change as the key areas.
• The Bank mentioned that it will help developing countries resume growth and respond to the health, social, and economic impacts of COVID-19. 

About World Bank

• It traces its origin to the  Bretton Woods Conference, officially known as the United Nations Monetary and Financial Conference, was a gathering of delegates from 44 nations that met from July 1 to 22, 1944 in Bretton Woods, New Hampshire (USA), to agree upon a series of new rules for international financial and monetary order after the conclusion of World War II.
• The two major accomplishments of the conference were the creation of the International Bank for Reconstruction and Development (IBRD) and the International Monetary Fund (IMF).
• The World Bank Group is an international partnership comprising 189 countries and five constituent institutions that works towards eradicating poverty and creating prosperity. 

The five development institutions under the World Bank Group are

• International Bank for Reconstruction and Development (IBRD)
• International Development Association (IDA)
• International Finance Corporation (IFC)
• Multilateral Guarantee Agency (MIGA)
• International Centre for the Settlement of Investment Disputes (ICSID)