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Decrease in Family Remittances Threatens the Well-Being of Millions of People
Every year globally in total over 500 billion US dollars is sent to millions of families in developing countries. These families use the money to buy food, pay their children’s school fees, pay the bills, health care, loans and investments for future. What is this about?
Huge amounts of money are moving around the world all the time, but the 500 billion dollars mentioned above refers to the remittances migrants send to their families. That amount of money exceeds by far the development aid granted by developed countries. Annually over 200 million international migrants, of which about half are women, send money to their family members in developing countries. Family remittances are making easier the lives of about 800 million people.
COVID-19 Has Deteriorated the Financial Situation of Migrants
The COVID-19 pandemic has changed the situation. It has hit hard on sectors where many migrants are employed, such as tourism and services. Due to the restrictions and closures implemented in many countries, millions of migrants have lost their jobs, had had to return to their countries of origin or are stranded in their country of employment waiting for a chance to return home. Some migrants have been able to continue working but their working hours have been reduced. Overall, the pandemic has significantly deteriorated the economic situation of millions of migrants. The disruptions in their family remittances have plunged even more people into poverty. Due to some societies basically shutting down part of their services, also some money transfer services have been unavailable. This means that even those migrants who have been able to keep working could have had difficulties in transferring money to their families.
The World Bank estimates that remittances destined to developing countries during 2020 will decrease by 110 billion dollars from last year and returning to the pre-pandemic numbers will take years.
Remittances Are a Lifeline for Families
Millions of families depend on remittances to survive their daily lives. “Remittances are a lifeline for poor families in low- and middle-income countries. Governments should take measures and do everything possible to facilitate the flow of funds during crises such as the COVID-19 pandemic,” Gilbert F. Houngbo, the President of the International Fund for Agricultural Development tweeted on the International Day of Remittances on 16 June 2020.
The Achievement of the Sustainable Development Goals Jeopardized
The decrease or halt in remittances does not only deteriorate the economic situation of migrants and their families but also jeopardizes the achievement of the Sustainable Development Goals (SDGs). At least the following goals are likely to become unachieved in the current context:
1. No Poverty
2. Zero Hunger
3. Good Health and Well-Being
4. Quality Education
8. Decent Work and Economic Growth
Besides these goals, remittances influence other SDGs as well.
IOM Supporting Migrant Workers
IOM has recognized the need to address migrants’ and their families’ economic uncertainties. It has therefore joined in the call to action led by the UK and Switzerland. Also, a group of governments and non-governmental actors are behind the call to action. The aim is to raise awareness on the problems caused by decreasing remittances and to request decision-makers, institutions and money transfer services to facilitate remittances between migrants and their families.
It must also be remembered that many of the problems migrant workers have to face existed already before the pandemic. Therefore, while combatting the pandemic and when recovering from it in the future we must take migrants socioeconomic situation into account. We have to support migrants’ access to official employment, promote migrant workers’ rights and social security. Their rights are as important as other workers’ rights.
IOM is actively working to improve remittance policies and regulations. It has developed its MigApp application that shows the most inexpensive service for money transfer at a given time. Furthermore, IOM cooperates with the international community, private sector and diaspora communities to find ways to facilitate remittances. IOM Secretary General António Vitorino has stated that it is vital that we join forces and support migrants and their families who have suffered a sudden loss of income, as they can no longer afford food, accommodation or essential health services.
The writer manages the communications of IOM Finland.
The views expressed by the authors in IOM Finland's blog are their own and do not necessarily reflect the official views of the International Organization for Migration.
More Information
The International Day of Family Remittances is commemorated every year on 16 June to recognize migrants’ valuable contributions to the well-being of their families and home communities. This year the theme was “resilience during the times of crisis” referring to the consequences of the COVID-19 pandemic to migrants and their families.
Sources
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Remittance statistics by the World Bank, available here.
-
Call to Action Remittances in Crisis: How to Keep Them Flowing
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A news article by IOM related to the International Day of Family Remittances
Related Blogs
Every year globally in total over 500 billion US dollars is sent to millions of families in developing countries. These families use the money to buy food, pay their children’s school fees, pay the bills, health care, loans and investments for future. What is this about?
Huge amounts of money are moving around the world all the time, but the 500 billion dollars mentioned above refers to the remittances migrants send to their families. That amount of money exceeds by far the development aid granted by developed countries. Annually over 200 million international migrants, of which about half are women, send money to their family members in developing countries. Family remittances are making easier the lives of about 800 million people.
COVID-19 Has Deteriorated the Financial Situation of Migrants
The COVID-19 pandemic has changed the situation. It has hit hard on sectors where many migrants are employed, such as tourism and services. Due to the restrictions and closures implemented in many countries, millions of migrants have lost their jobs, had had to return to their countries of origin or are stranded in their country of employment waiting for a chance to return home. Some migrants have been able to continue working but their working hours have been reduced. Overall, the pandemic has significantly deteriorated the economic situation of millions of migrants. The disruptions in their family remittances have plunged even more people into poverty. Due to some societies basically shutting down part of their services, also some money transfer services have been unavailable. This means that even those migrants who have been able to keep working could have had difficulties in transferring money to their families.
The World Bank estimates that remittances destined to developing countries during 2020 will decrease by 110 billion dollars from last year and returning to the pre-pandemic numbers will take years.
Remittances Are a Lifeline for Families
Millions of families depend on remittances to survive their daily lives. “Remittances are a lifeline for poor families in low- and middle-income countries. Governments should take measures and do everything possible to facilitate the flow of funds during crises such as the COVID-19 pandemic,” Gilbert F. Houngbo, the President of the International Fund for Agricultural Development tweeted on the International Day of Remittances on 16 June 2020.
The Achievement of the Sustainable Development Goals Jeopardized
The decrease or halt in remittances does not only deteriorate the economic situation of migrants and their families but also jeopardizes the achievement of the Sustainable Development Goals (SDGs). At least the following goals are likely to become unachieved in the current context:
1. No Poverty
2. Zero Hunger
3. Good Health and Well-Being
4. Quality Education
8. Decent Work and Economic Growth
Besides these goals, remittances influence other SDGs as well.
IOM Supporting Migrant Workers
IOM has recognized the need to address migrants’ and their families’ economic uncertainties. It has therefore joined in the call to action led by the UK and Switzerland. Also, a group of governments and non-governmental actors are behind the call to action. The aim is to raise awareness on the problems caused by decreasing remittances and to request decision-makers, institutions and money transfer services to facilitate remittances between migrants and their families.
It must also be remembered that many of the problems migrant workers have to face existed already before the pandemic. Therefore, while combatting the pandemic and when recovering from it in the future we must take migrants socioeconomic situation into account. We have to support migrants’ access to official employment, promote migrant workers’ rights and social security. Their rights are as important as other workers’ rights.
IOM is actively working to improve remittance policies and regulations. It has developed its MigApp application that shows the most inexpensive service for money transfer at a given time. Furthermore, IOM cooperates with the international community, private sector and diaspora communities to find ways to facilitate remittances. IOM Secretary General António Vitorino has stated that it is vital that we join forces and support migrants and their families who have suffered a sudden loss of income, as they can no longer afford food, accommodation or essential health services.
The writer manages the communications of IOM Finland.
The views expressed by the authors in IOM Finland's blog are their own and do not necessarily reflect the official views of the International Organization for Migration.
More Information
The International Day of Family Remittances is commemorated every year on 16 June to recognize migrants’ valuable contributions to the well-being of their families and home communities. This year the theme was “resilience during the times of crisis” referring to the consequences of the COVID-19 pandemic to migrants and their families.
Sources
-
Remittance statistics by the World Bank, available here.
-
Call to Action Remittances in Crisis: How to Keep Them Flowing
-
A news article by IOM related to the International Day of Family Remittances