World Bank | The Development Podcast - ‘They rely on those remittances and without it, how can they live?’ – COVID projected to slash key lifeline for families in the developing world

‘They rely on those remittances and without it, how can they live?’ – COVID projected to slash key lifeline for families in the developing world

07/23/20 • 22 min

In recent years, remittances were on the rise, playing an increasingly important role in global development. They eclipsed foreign aid in the ‘90s and surpassed foreign direct investment last year. Then COVID-19 and the subsequent lockdowns hit.

Dilip Ratha, the World Bank’s Lead Economist for Migration and Remittances, tells us that he thinks there will be a 20% drop in those flows this year, as migrants struggle to find work. And that matters, he says, because many families depend on those funds for their basic needs.

We also get the view from Manilla, from where Katrina Hontomin joins us to talk through how remittances shaped her life – from her early education to today.

And Raka has the latest development data to help us make sense of the story.

It all comes to you from the World Bank Group in Washington, DC and around the world!

And as always, we welcome your feedback, questions, and ideas. Email us using [email protected].

We also get the view from Manilla, from where Katrina Hontomin joins us to talk through how remittances shaped her life – from her early education to today.

And Raka has the latest development data to help us make sense of the story.

It all comes to you from the World Bank Group in Washington, DC and around the world!

And as always, we welcome your feedback, questions, and ideas. Email us using [email protected].

Previous Episode

‘Locking down an economy creates insolvency’ – The coronavirus’ impact on companies and jobs

Call it the “great lockdown”, the “coronavirus recession” or another moniker – whatever your label, the facts are clear: this unprecedented pandemic is having an unprecedented impact on the private sector.

While the full scale of the damage to companies and jobs is still being assessed, the International Finance Corporation’s Stephanie Von Friedeburg says: “developed country or a developing country, locking down an economy creates insolvency”.

“What we're going to see is a rise in unemployment and a loss of jobs. Liquidity issues at the firm level. And the longer the lockdown lasts, the more probability of insolvency”.

We hear from Stephanie about her plans to support the private sector during the COVID-19 response and recovery.

Plus, Raka runs us through the latest forecasts for the global economy from our colleagues behind the Global Economic Prospects.

All that and more from the World Bank Group in Washington, DC and around the world!

And as always, we welcome your feedback, questions, and ideas. Email us using [email protected].

Next Episode

undefined - ‘A way to give developing countries more resources in a time when they need it most’ – Helping poor countries suspend their debt service payments during COVID-19

‘A way to give developing countries more resources in a time when they need it most’ – Helping poor countries suspend their debt service payments during COVID-19

Developing countries are under tremendous strain while attempting to respond to the coronavirus pandemic.

To try and free-up resources so that they can better protect lives and livelihoods, the World Bank Group and International Monetary Fund in April called on creditors to allow lower income countries to suspend their bilateral debt service payments and focus resources on responding to the pandemic. The plan – called the Debt Service Suspension Initiative (DSSI) – was taken up by G20 Finance Ministers.

On this edition of the Development Podcast, we hear from the World Bank Group’s Global Director for Macroeconomics, Trade and Investment, Marcello Estevão, who answers our questions on how the program works and just how effective it has been.

And send us your questions and comments: [email protected]