By Samer Saliba, Head of Practice, Mayors Migration Council
The international community is not doing enough to financially support those who are doing the most for migrants, refugees, and internally displaced people during this global pandemic: city governments. While many cities have the mandate to serve people in vulnerable situations, including migrant and displaced residents, they often do not have enough financial resources to meet the increased demand and need of new arrivals. Lost revenue due to the economic impacts of COVID-19 will further curtail cities’ ability to deliver critical services to their residents this year. Some estimates suggest city governments could see revenue losses of up to 25 percent in 2021, precisely when their spending needs to increase to pay for recovery efforts and continuously growing populations. In a recent survey, 33 municipal finance officials in 22 countries across all continents reported already seeing a 10 percent decrease in their overall revenue and around a five percent increase in expenditure. This “scissors effect” of local government revenue and expenditure will be most felt in cities in developing countries. African cities, for example, could potentially lose up to up to 65 percent of their revenue in 2021.
While the international community is paying more attention to municipal finance in relation to climate change, sustainable development, and urban development in general, the same cannot be said of urban migration and displacement. Few municipal finance mechanisms focus explicitly on financing for urban migration and displacement, despite the fact that the majority of migrants and displaced people reside in cities. Moreover, donors with low risk tolerance often disregard city governments in low to middle-income countries. In response to the unmet needs of cities, my organisation, the Mayors Migration Council (MMC), recently launched the Global Cities Fund on Inclusive Pandemic Response supporting five cities to implement inclusive response and recovery programmes of their own design.Continue reading