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