As infections surge among migrant workers, the global economy feels their pain

The economic fallout of COVID-19 in the developing world has prompted a global conversation about increasing aid for poor countries, but the lack of government assistance pales in comparison to the loss of remittances from family members working abroad.

The recent spike in COVID-19 infections in Florida is ravaging migrant workers, leaving many out of work and in unprecedented social and financial strain – and subjecting them to stigma and scapegoating by leaders seeking to score political points. While isolating these migrant workers may or may not slow the spread of infections, it is just one example of factors that will accelerate economic hardship worldwide—particularly in developing nations. The combination of health and economic impacts on our invisible workforce will contribute to a secondary pandemic of worsening poverty and hunger, which we cannot ignore

The economic fallout of COVID-19 in the developing world has prompted a global conversation about increasing aid for poor countries, but few have acknowledged that assistance from governments pales in comparison to remittances from family members working abroad.

The pandemic is sapping these remittances at a devastating rate. The World Bank estimates that international family remittances will fall by 20% in 2020, resulting in $110 billion in lost income for families living close to the poverty line, meaning they survive on $1.90 a day or less.

U.S. policymakers need to understand that migrant workers are a vital organ not only of America’s agricultural community, but of the entire global economy. There are 164 million migrant workers around the world providing irreplaceable services in their host countries. In 2019, these workers sent a whopping $554 billion back home to impoverished nations. That far exceeds all international aid budgets combined.

Remittances sustain many developing nations. Haiti receives over 30% of its annual GDP from citizens living abroad — many of them in the U.S. It’s estimated that as much as $2 billion dollars comes to Somalia each year in the form of remittances, and other countries such as South Sudan and Bangladesh are also highly dependent on this income stream. In all, it’s thought that about 800 million people across 125 countries rely on money from relatives abroad.

Combine these dependencies with rising commodity prices and the slump in international trade, and this year is shaping up to be a devastating one for the world’s poorest. The United Nations has predicted a severe hunger crisis, with the possibility of multiple famines.

So what’s the solution? We focus on the global extreme poor, but here at home it’s clear that migrants like those in Florida must be included in any future social protection measures, while also expanding access to testing and emergency health care in migrant communities. That may sound like hoping against hope in the current climate, but perhaps the economic imperative will out, if not the humanitarian imperative. And governments around the world must ease the flow of remittances by reducing fees and taxes on money sent abroad.

It is also incumbent on all donor governments to not cut back on foreign aid and existing commitments to developing nations. The safety net must be strengthened in the world’s most vulnerable communities, just as in the U.S. and other wealthy nations.

Concern Worldwide is joining with other international humanitarian organizations to do just that.

We have established extensive cash distribution programs, which provide regular funds to extremely poor and disadvantaged families, helping them through the toughest times. For example, the Somali Cash Consortium distributed over $18 million last year through its established networks. We are looking to expand this work across various countries, where possible, as the effects of the pandemic bite.

Even amidst the pandemic, the world must continue its efforts to eliminate extreme poverty — family by family, community by community — in the places where it is endemic. Working with people to understand what holds them back, and then helping them to build their assets and access to income, nutritious food, and education is a herculean task, but it is one that governments, nonprofits, and individual citizens must tackle together.

Remittance losses will create a massive challenge that will hit hard on both sides of the global economic divide. Global action is required to lessen the destabilization that will result.