Guyanese benefitted from high COVID-19 emergency cash transfers in region

…as labour force reduced by 23% – World Bank

The World Bank report has pegged the rate Guyana lost its labour force in the wake of the COVID-19 pandemic at 23 per cent, while at the same time revealing stats that show Guyana led efforts in the region when it comes to pandemic related cash transfers.

The report in question, “An Uneven Recovery: The Impact of COVID-19 on Latin America and the Caribbean”, was compiled by the World Bank and the United Nations Development Programme (UNDP). The World Bank conducted its survey in 24 countries in the Latin American and Caribbean (LAC) region, sampling from populations aged 18 years and over and with telephone access.
Of the 23 per cent of Guyanese who were employed before the outbreak of the COVID-19 pandemic last year and who subsequently lost their jobs, approximately seven per cent of them became unemployed while the remaining 16 per cent simply left the workforce. The report also provided details of what this job loss looked like regionally.
“Close to one in four people employed before the pandemic in Latin America and Caribbean report that they no longer work, and more than half of them have exited the labour market force,” the report said.
“The most affected by job loss are: women (38 vs 17 per cent compared to men), particularly mothers with children less than five years old; old workers (31 vs 28 for younger workers, and 22 for workers between 30-54 years old), and those with low educational attainment (35 vs 27 and 18 per cent for those with secondary and higher education, respectively),” it added.
The report did, however, have some positive news to share when it comes to the Guyana Government’s efforts to help citizens out through cash grants. At a rate of approximately 70 per cent, Guyana has the third highest share of households to receive emergency cash transfers.
Only El Salvador and Bolivia had higher rates of emergency cash transfers, compared to the other 22 countries surveyed. But according to the report, most countries have still not recaptured pre-pandemic household income levels, opening the door for the necessity of more transfers.
“Close to half of the households in the region are still unable to recover their pre-pandemic (total) income level, despite receiving support from the Government in the form of regular and emergency transfers and despite increases in private transfers,” the report warned.
“This scenario of economic turmoil for households in LAC has persisted despite Government attempts to counter it through expansions in coverage and expenditure of regular social transfers and the introduction of emergency transfers, which jointly benefit 46 per cent of households in the region at present.”
The report further noted that as of 2021, emergency aid coverage ranged from 3 per cent of households in Haiti to nearly 80 per cent of households in El Salvador and varied widely in size across countries.
In light of the negative impacts of COVID-19 on citizens, the Government of Guyana had announced that every household would get $25,000 in direct cash transfers back in September of last year.
The money was to be distributed through a door to door, voucher system and was among the wide-ranging measures President Dr Irfaan Ali had announced would be in the emergency budget. True to its word, the Government went countrywide with its $25,000 per household initiative. Pensioners also received a one-off pension bonus of $25,000 while persons living with disabilities received the same.
With the aim of cushioning the high shipping costs due to the global pandemic, President Dr Irfaan Ali had also announced several reductions to shipping-related charges to the tune of $4.8 billion in order to bring relief to citizens and businesses.
There is also the Government’s $19,000 per child “Because We Care” initiative, which comprises the grant valued at $15,000, and the school uniform and supplies voucher valued at $4000. Government has committed to increasing the “Because We Care” cash grant incrementally each year until it reaches $50,000. The school uniform and supplies voucher was increased last year from $2000 to $4000, representing a 100 per cent increase.
As of the end of March 2021, over $28 billion in banking relief to businesses in various sectors has been provided, helping to cushion them from the fallout of the pandemic.
Piloted back in 2014 under the previous People’s Progressive Party/Civic (PPP/C) Administration, this initiative was designed to assist parents with children in the public school system with some financial support, thereby raising the disposable income in households and increasing attendance rates.
It was scrapped in 2015 after the APNU/AFC Government took office. Last year, the new PPP/C Administration reintroduced the grant, raising it from $10,000 to $15,000 per child in addition to raising the uniform allowance from $2000 to $4000. (G3)