That is helpful. I apologize for the unstable connection.
Some of the initial problems that we saw with the food system have been resolved. Our partner organizations have changed the way they do food assistance to reduce COVID risk, but they're still distributing food. As in Canada, they've shifted from in-person meetings to communication by telephone and other means, but they're still keeping in touch with the people who need help.
Nevertheless, the economic impact continues to be experienced by many households. From surveys of multiple African countries, we know that nearly 80% of households have lost income because of COVID. For example, that could be an Ethiopian man who used to work in Saudi Arabia and send money home, but his job disappeared with the lockdown. It could be a female small-scale trader who used to buy in Uganda and sell in Congo, but can't now because of the border restrictions. It could be a pastoralist who normally sells animals to people celebrating festivals, but the festivals have been cancelled.
This loss of income has increased food insecurity. For many who were struggling to eat before COVID, it has pushed them to crisis level. It's often worse for women, because their jobs in the informal sector have been harder hit.
COVID has brought another layer of stress on families, on communities and on countries that were already facing multiple stresses, including conflict, which is the primary driver of food insecurity in many contexts, or the desert locusts and weather extremes. People who were already vulnerable now face another big shock.
The economic downturn is having significant impacts on government finances. This will increase the debt burden, slow economic activity and constrain the ability to reduce hunger in the coming years. COVID may be a short-term crisis, but it will have a very long tail, as many millions of people are pushed into extreme poverty.
To respond to COVID, here are three recommendations for what Canada could do. The first is, don't think of this pandemic as a stand-alone crisis. The people dealing with COVID impacts are also dealing with other stresses. Our support should help them deal with as many of those stresses as possible. That means better linkages between humanitarian and development programming. Knowing how much hunger is caused by conflict, Canada should also seek ways to support both humanitarian and development work, with an eye to reducing conflict and building peace.
Second, Canada should support programming through local partnerships. This is important now, when travel is restricted, but it's also important over the long term to build local capacity to ensure robust and ongoing support to respond to acute hunger in conflict and crisis contexts.
We know that Canada has already committed over $1 billion in new aid spending to respond to COVID impacts. We applaud this action, but we also recognize it's not nearly enough. At the same time, Canada has re-profiled hundreds of millions of dollars that were already in the aid budget for the COVID response. While this quick pivoting of aid resources was appropriate, Canada's aid budget is at its lowest point in 50 years, and the other needs have not diminished.
My third recommendation is that Canada should ramp up aid to help people overcome the crises that they were dealing with before COVID and commit new and additional resources to the COVID response.
Thank you for your attention. I would be happy to deal with any questions from the floor.