Haitian Families and Loss of Remittances During the COVID-19 Pandemic

By Toni Cela, Senior Research Associate of the Migration for Development and Equality (MIDEQ) hub & Co-ordinator of the Interuniversity Institute for Research and Development (INURED), and Louis Herns Marcelin, Co-Director of the MIDEQ project; Professor at the University of Miami; & Chancellor of INURED


This blog is part of a series on tackling COVID-19 in developing countries. Visit the OECD dedicated page to access the OECD’s data, analysis and recommendations on the health, economic, financial and societal impacts of COVID-19 worldwide.


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Port-au-Prince, Haiti. Photo: Rafal Cichawa/Shutterstock

Migration has always featured prominently in Haiti’s history. At times forced, as in the case of sociopolitical repression and the aftermath of disasters, induced to fulfil labour and workforce needs in the Caribbean and in other periods voluntary as in the circulatory movement recorded in the Caribbean, South and North America. Over the past decades, migration in Haiti has evolved from a survival strategy for individual migrants and their families to now buttressing the local economy through the transfer of remittances. This reality was made evident during the 2010 earthquake rebuilding effort when the Haitian diaspora identified itself as Haiti’s “single largest donor” citing “the magnitude of its remittances to the Haitian Republic and how those contributions totalling [USD] $2 billion dollars annually allot[ed] for 30% of the GNP .”  In comparison, public revenues, excluding grants, represent 13% of GDP and are projected to fall to 10% in 2020.

Remittance transfers to Haiti have continued to grow over the past decade, the lion’s share of funds originating in countries throughout the Americas, particularly the United States, where the majority of Haitians have settled. Yet, the global economic crisis brought on by the COVID-19 pandemic poses a serious threat to the global remittance economy. For Haiti, reduction in remittances will further weaken an already feeble economy while negatively impacting the livelihood and health of families and communities. Continue reading

COVID-19: Forging a new social contract in the Middle East and North Africa

 By Rabah Arezki, Chief Economist for Middle East and North Africa Region at the World Bank and Mahmoud Mohieldin, United Nations Special Envoy for the 2030 Agenda


This blog is part of a series on tackling COVID-19 in developing countries. Visit the OECD dedicated page to access the OECD’s data, analysis and recommendations on the health, economic, financial and societal impacts of COVID-19 worldwide.


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Egypt, Hurghada: Disinfection of a street during the coronavirus outbreak, March 2020. Photo: Aleks333/Shutterstock

The COVID-19 crisis and its dual shock of disease and falling oil prices have brought to light the underlying flaws of Middle Eastern and Northern African (MENA) economies today. Flaws that authorities must fix if the region is to prosper.

At the global level, there will likely be a ramping up of the role of the state to eradicate the virus and protect economies from depression. State intervention is already high in the MENA region (see Figure 1). How well this helps countries cope first with the pandemic and then its aftermath depends on their ability to refocus, be more transparent, and develop accountability mechanisms.

Figure 1. Government Consumption in GDP

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How COVID-19 can change incentives for development co-operation

By Nilima Gulrajani, Senior Research Fellow, ODI


This blog* is part of a series on tackling COVID-19 in developing countries. Visit the OECD dedicated page to access the OECD’s data, analysis and recommendations on the health, economic, financial and societal impacts of COVID-19 worldwide.


cooperation-hands-puzzle-world-2There is nothing new in accusing bilateral donors of repurposing foreign aid to serve their domestic national interests. Even before the current pandemic, donors had been slashing aid in exchange for middle-class tax breaks, twisting the definition of official development assistance (ODA) to allow for the inclusion of expenditures in wealthier countries, and tying aid to the uptake of domestic consultants. So, what happens now, as economic and social needs expand globally with every case of COVID-19 detected and every grave marked?

The initial vital signs of international collective action are not promising. Some politicians have come under flak for donating personal protective equipment to other countries just before domestic demand skyrocketed, even if this equipment was set to expire and the favour returned in kind. Others stand accused of using medical aid to further diplomatic ambitions. Yet others have gone even further, seemingly keen to upend global co-operation and dismantle the very institutional architecture able to marshal both the transnational networks and political leadership required to detect, monitor and eventually stop this unpredictable pathogen. In short, there are worrying signs about the possibility of upholding a functioning multilateral co-operation system, even among supposedly like-minded actors. Continue reading

Remittances during COVID-19: Reduce costs to save livelihoods

By Paul Horrocks, Manager, Private Finance for Sustainable Development; Friederike Rühmann, Policy Analyst; and Sai Aashirvad Konda, Consultant at the OECD Development Co-operation Directorate


This blog is part of a series on tackling COVID-19 in developing countries. Visit the OECD dedicated page to access the OECD’s data, analysis and recommendations on the health, economic, financial and societal impacts of COVID-19 worldwide.


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Mumbai, India – Migrant workers return home during a nationwide lockdown due to COVID-19, on May 2020. Photo: Manoej Paateel / Shutterstock

The COVID-19 crisis is severely affecting migrants’ ability to send money home to their families.

The World Bank predicts a decline in global remittances by about 20 percent in 2020 due to the economic downturn caused by the COVID-19 pandemic. This decline threatens the livelihoods of millions of households in developing countries, and the international community must urgently invest in innovative, resilient, and cost-reducing solutions to support developing countries amid the crisis and in their recovery.

Impact of COVID-19 on remittances

Remittances serve as an important source of income for millions of households in developing countries and act as a safety net in times of emergencies, natural disasters and crises. In 2019, the flow of remittances reached a record flow of $554 billion to low-and middle-income countries. Continue reading

Ethiopia’s Response to COVID-19

By Arkebe Oqubay, Senior Minister and Special Advisor to the Prime Minister of Ethiopia, distinguished fellow at the Overseas Development Institute and author


This blog is part of a series on tackling COVID-19 in developing countries. Visit the OECD dedicated page to access the OECD’s data, analysis and recommendations on the health, economic, financial and societal impacts of COVID-19 worldwide.


Ethiopia-coronavirus-shutterstock_1190087614Africa Day this week is remembered at a time when the world faces an unprecedented crisis. Africa is not immune and has seen over 110,000 cases of COVID-19 and 3,300 deaths. To the surprise of many, African governments have taken bold and swift measures in response to the pandemic, despite their resource constraints and weaker economic base. However, the responses have not been uniform, and the outcomes are likely to be uneven.

Ethiopia is one of the countries that put bold measures in place early on, even though its approach has been an unconventional one. Unlike most African countries, Ethiopia did not introduce national lockdown. The country’s ‘sustained moderate to strong measures’ strategy focused on taking bold measures early and scaling them up gradually. Preparations began in January and February, and a national response was declared with Ethiopia’s first reported case on 13 March, with tighter measures including compulsory quarantine and an increased public awareness campaign. A state of emergency was declared on 8 April. Continue reading

Repurposing Africa’s manufacturing: A means to address medical equipment shortages and spur industrialisation

 Rajkumar Mayank Singh, Tony Blair Institute (TBI) Strategic Advisor to the Government of Rwanda, Antoine Huss, Regional Lead, Francophone West Africa, TBI, Jonathan Said, Head of Inclusive Economic Growth, Africa, TBI, and Kekeli Ahiable, West Africa Analyst, TBI


This blog is part of a series on tackling COVID-19 in developing countries. Visit the OECD dedicated page to access the OECD’s data, analysis and recommendations on the health, economic, financial and societal impacts of COVID-19 worldwide.


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Personal Protective Equipment (PPE) production in a repurposed factory in Ghana. Photo courtesy of the authors.

The World Health Organization (WHO) predicts that around 22% of Africa’s population will be infected by COVID-19 within a year, possibly resulting in 150,000 deaths. In a recent forecast by Kearney, even in a suppressed pandemic progression scenario, demand for medical gowns, gloves, masks, swabs, and hand sanitizers will surge by ~1,600 percent from the baseline. In such circumstances, weak health systems and a lack of essential medical supplies leave countries in Africa particularly vulnerable.

Governments around the world have been panic buying essential medical supplies, while the World Trade Organization recently reported eighty countries that have introduced export prohibitions restricting the global supply of medical equipment. In 2018, as depicted in figure 1, industrialised countries like the U.S.A. and Germany had the largest market share in global export of ventilators and testing kits, while China led exports of face masks globally. With African countries importing most of their medical needs, panic buying and supply chain disruptions will significantly undermine the ability of African countries – and hence the world – to defeat COVID-19. Continue reading

What can Latin America learn from historic debt crises to face the COVID-19 crisis today?

By Juan Flores Zendejas, Associate Professor at the Paul Bairoch Institute of Economic History, University of Geneva


This blog is part of a series on tackling COVID-19 in developing countries. Visit the OECD dedicated page to access the OECD’s data, analysis and recommendations on the health, economic, financial and societal impacts of COVID-19 worldwide.


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Photo: Shutterstock

Today, as in the past, public debate can resort to history in the quest for policy lessons. The COVID-19 crisis is prompting governmental action to meet the needs of large swathes of society and achieve rapid economic recovery. This is adding further pressure on public finances. However, while major stimulus packages are to be implemented in several rich countries, most developing and emerging economies do not have the fiscal capacity to provide similar amounts of financial support. Continue reading

A new approach to the intractable problem of climate change

By François Candelon, Managing Director and Senior Partner at BCG Paris, and the Global Director of the BCG Henderson Institute, Rodolphe Charme di Carlo, Principal at BCG Paris, and Ambassador at the BCG Henderson Institute, and Yves Morieux, Managing Director and Senior Partner at BCG Middle East, BCG Fellow, and head of BCG Institute for Organization


This blog is part of a series on tackling COVID-19 in developing countries. Visit the OECD dedicated page to access the OECD’s data, analysis and recommendations on the health, economic, financial and societal impacts of COVID-19 worldwide.


climate-change-covid-19COVID-19 is climate on warp speed” said Gernot Wagner, climate economist at NYU. Both trends show exponential growth – in infected people and CO2 emissions respectively – while capacity to fight them remains limited. Still, while governments enforce emergency measures around the globe, little action on climate has happened to date. Therefore, the actual question to solve is not “what can we do?” but rather “why not now?”

Bringing an alternative and rigorously structured approach can help to find practical, impactful solutions. The concept of Smart Simplicity, applying principles of sociology to solving complex organisational problems in business and beyond, can play this role by analysing inaction from two angles. First, the systemic lens – stemming from Thomas Schelling’s work – assesses how individual behaviours combine to produce collective outcomes that cannot directly be traced back to individual motives. Second, the strategic lens, legacy of Herbert Simon’s “bounded rationality”, analyses individual behaviours within the context of problems they try to solve, with resources to mobilise and constraints to cope with. Continue reading

COVID-19 crisis: Why we must prioritise mental health of the world’s displaced

By Shaifali Sandhya, PhD, Clinical Psychologist, Care Family Consultation


This blog is part of a series on tackling COVID-19 in developing countries. Visit the OECD dedicated page to access the OECD’s data, analysis and recommendations on the health, economic, financial and societal impacts of COVID-19 worldwide.


Deprsession-shutterstock_332939864The modern world is in an unprecedented situation. In the last decade, the global population of the forcibly displaced has swelled to 70.8 million; with the advent of COVID-19, its numbers are expected to soar as a staggering number of refugee and asylum-seeker families find themselves further displaced by fear of disease, food insecurity and by the pressures of collapsing national economies. In many countries displaced communities’ access to labour markets is limited to the informal market, and equally vulnerable will be nations’ shadow workers – garbage workers, prostitutes, domestic help, garment makers, and gig workers. Faced with an economic crisis of cataclysmic proportions, economists and political leaders will be tempted to focus solely on the physical and economic facets of the current crisis.  But if we want to make it through this crisis, that won’t be enough.  In addition to financial and physical wellbeing we will need to recognize and address mental health around the world and at every level of society, especially of its displaced communities. We are at best, unprepared for the worst; for both OECD and developing countries, we need to provide tailored mental health treatment to those who need it in the communities they live in. Continue reading

Driving Africa’s industrialisation on the back of COVID-19

By Toyin Abiodun, Industry and Trade Advisor, Rwanda, Maudo Jallow, Industry and Trade Analyst, Ghana and Jonathan Said, Head of Inclusive Economic Growth, Africa, Tony Blair Institute


This blog is part of a series on tackling COVID-19 in developing countries. Visit the OECD dedicated page to access the OECD’s data, analysis and recommendations on the health, economic, financial and societal impacts of COVID-19 worldwide.


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Photo courtesy of the Tony Blair Institute

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Africa imports a net of $232 billion worth of manufactured goods every year, while it exports a net of $174 billion worth of raw commodities. Although Africa’s economy grew on average by 5.5% per year over the past fifteen years,  manufacturing has remained a fixed share – still accounting for only 10 per cent of GDP.

The impact COVID-19 is having on global supply chains and on global trade, and the immense economic pressure this is placing on Africa – not least in the availability of medical equipment, but also food and other goods – signals the importance of industrialising the continent. While COVID-19 is creating a major economic and health crisis, it also presents an opportunity to grab this agenda by the horns and accelerate Africa’s industrialisation.

Evidence from across the continent suggests this is possible. Many products that are imported to the continent – ranging from machinery to textiles to pharmaceuticals to processed food and medical equipment – are already produced competitively in Africa. For example, Kenya and Uganda have a thriving pharmaceutical industry, Ethiopia and Senegal have expanded their textiles industry in recent years, while Morocco and South Africa are major car producers. Continue reading