Thank you very much, and thank you for inviting me to participate in this panel.
Over the past year, my colleagues and I at the Center for Global Development and Refugees International have conducted a series of studies examining the economic effect of COVID-19 on refugees in various countries around the world. Two of our reports look specifically at the economic effect of the pandemic on Venezuelan refugees in Colombia and Peru.
What we found in our research was that Venezuelans in these countries have been disproportionately impacted by the economic effects of the pandemic. Specifically we found that prior to the outbreak, Venezuelans were far more likely to be working in the sectors that have been most affected by the lockdowns, such as food services and retail trade, so it's likely they are losing their jobs and sources of income at especially high rates.
Compounding these challenges, we know that refugees were already earning much less on average prior to the pandemic. For example, in Colombia prior to the outbreak, Colombian citizens were earning about 43% more than Venezuelan refugees on average, despite the fact that many Venezuelans are highly educated, and Venezuelans were 17 percentage points more likely to be working in sectors that were highly impacted by the pandemic, so the income gaps have likely grown even larger.
We also found that Venezuelan women were typically more negatively affected by the economic effects of the pandemic than Venezuelan men, and that they had even lower average incomes to begin with. As a result of being pushed even further into economic precarity, Venezuelan refugees are experiencing a wide range of devastating outcomes. For example, in Colombia food insecurity is widespread, with only about one-quarter of Venezuelans consuming three meals a day, down from 70% prior to the pandemic. Many families have been evicted from their homes and have been left homeless, and domestic abuse, which is often driven by economic distress, is on the rise.
There are two important questions that emerge from these findings: Why are refugees earning so much less, and why are they working in sectors that have been most affected by the pandemic?
We think the answers are related to the many restrictions that refugees face in the labour market. For example, in every country hosting Venezuelans in Latin America, many Venezuelans lack the legal right to work, and it is very difficult for highly educated refugees to verify their degrees and credentials. As a result, most are forced to work in the informal sector, where wages are lower and impacts of the outbreak have been most severe.
Another question is about what can be done to support Venezuelan refugees. First, it is important to advocate fewer labour market restrictions and barriers to refugees. This will allow them not only to recover more quickly from the economic shock created by the pandemic but also to contribute more fully to their host countries' recovery from recession. It will also allow them to support the fight against the pandemic. Many Venezuelans have backgrounds as medical professionals, but in most cases labour market restrictions prevent them from working in the medical profession.
Second, it is important for host governments to include refugees in national recovery measures and stimulus packages, such as cash transfers to vulnerable families and subsidies to small businesses, as well as in national health care assistance, and where necessary it is important for foreign donors to provide financial support to help the low- and middle-income countries that are hosting Venezuelans to cover the cost of including refugees in these measures.
Third, I believe it is crucial that donors scale up efforts to support refugees, both through humanitarian support—since many refugees are in extremely precarious economic positions—and through livelihood support, to help refugees reintegrate into the labour market and become self-reliant.
In 2020 the Refugee and Migrant Response Plan 2020 for Refugees and Migrants from Venezuela, which is the regional humanitarian and development response to Venezuelan displacement, was only 55% funded, so moving forward there is a lot more that donors can do to make sure that resources are available to meet the need.
In summary, prior to the pandemic, Venezuelan refugees were already much worse off in economic terms relative to host population, and the pandemic has only exacerbated these gaps, leaving Venezuelans in extremely precarious economic situations.
To address this problem, we need more advocacy for a more inclusive labour market for refugees and an increase in humanitarian and development assistance.
Thank you. I am happy to answer your questions.