Socioeconomic impacts of COVID-19 September 2020

Latin America and the Caribbean (Bolivia, Colombia, Ecuador, Guyana, Honduras, Peru and Suriname)

City of Cuzco, Peru

By Sara Awad and Alexandra Konn

CESO gratefully acknowledges financial contributions from Global Affairs Canada SOCIOECONOMIC IMPACTS OF COVID-19 1 Foreword

The COVID-19 pandemic currently represents the greatest challenge our world has faced since the Second World War. In less than a year, the pandemic has profoundly changed daily lives across the world, forcing the majority of people to adopt a new way of life both physically and mentally. The global spread of the virus has overwhelmed health systems and caused widespread social and economic disruption that will leave deep scars. This crisis is expected to hit developing countries disproportionately in the longer term.

In May 2020, CESO’s Program Development and Learning team initiated this research to document the social and economic impacts of COVID-19 across a number of countries where CESO has ongoing initiatives. While the key goal of this report is to contribute to informed strategy development in CESO’s project AWE (Accelerating Women’s Empowerment) funded by Global Affairs Canada. The study may also provide useful insights to the general public, particularly: students, researchers, practitioners, business leaders and policy makers who are engaged or can potentially become more engaged in the area of international development.

This report summarizes the social and economic impact of COVID-19 in Bolivia, Colombia, Ecuador, Guyana, Honduras, Peru and Suriname. Here, we explore the impact of the pandemic on gender equality, environment, agribusiness and tourism and hospitality. These all are key sectors and thematic areas where CESO aims to support people, businesses and other institutions to adapt, innovate and recover. This report is one of five publications that encapsulate the key findings of CESO's research on the impact of COVID-19 in twenty countries.

An in-depth review and analysis of news, articles and journals published in international, regional and national publications forms the key pillar of this research. These findings have been triangulated and further elaborated with insights from AWE staff members and partners from across different countries.

This research has involved the collection and adaptation of a depth of primary data with support of CESO staff members and partners from across different countries. The guidance from the management of CESO’s International Services team and technical specialists enabled the researchers to identify high priority practical areas to explore during the study. CESO appreciates the valuable advice from its expert volunteers who have supported the research in its critical milestones. Special thanks goes to the internship program at the Munk School of Global Affairs and Public Policy at the University of Toronto, which provided key support in research design, coordination and compilation.

SOCIOECONOMIC IMPACTS OF COVID-19 2 Introduction

The impact of COVID-19 on countries in Latin America and the Caribbean is primarily trade disruptions, international travel restrictions, and local government lockdowns and restrictions. Similar to African countries, COVID-19 arrived in Latin America and the Caribbean later than in North America and most countries in the region were quick to implement lockdowns and travel restrictions to mitigate the spread of the virus. However, COVID-19 has spread rapidly across countries despite these measures.

Latin American countries have a large informal workforce; around half of all Colombia workers are in the informal sector, and this percentage is expected to increase as formal jobs disappear. This job loss mainly came from SMEs, which typically generate 70% of national employment. Throughout Latin America and the Caribbean, micro, small, and medium enterprises (MSMEs) are critical components of the economy and are expecting significant losses. The resulting loss of employment and livelihoods may reduce the purchasing power of households, leading to a potential rise in food insecurity.

The economic impact on women will likely be greater due to their prevalence in the informal sector and in sectors most affected by the pandemic. In all countries in the Caribbean, UN Women reports that women are more concentrated in jobs that require face-to-face interaction and thus they face greater challenges from social distancing measures. Additionally, women face a higher care burden at home. This increased care load reduces the available time women have to devote to economic activities.

COVID-19’s disproportionate effect on food supply chains presents an exceptional risk to the agribusiness sector in Latin America and the Caribbean. Movement restrictions and reduced demand for exports has affected the value chains in all seven of the Latin American and Caribbean countries participating in CESO’s AWE project. Movement restrictions have resulted in reduced incomes for farmers and producers who were unable to sell all of their harvests. Many producers have turned to e-commerce as a solution to these logistical issues, using apps and technology to strengthen their value chains and reach customers.

This region also contains significant tourism-dependent economies. The shock of COVID-19 to the tourism sector in the Caribbean has “no precedent” in recent decades according to the Inter- American Development Bank (IDB). Significant decreases in employment is expected in this sector due to the COVID-19 pandemic. Given these losses, many in the sector are planning to pivot into more profitable sectors, such as agribusiness or personal protective equipment retail.

The IDB calls the economic fallout from the COVID-19 pandemic “the region’s most severe economic challenge since the Great Depression,” and predicts persisting economic damage unless programs are implemented to offset these impacts. The governments of the seven AWE countries have implemented their own various measures to mitigate some of these socio-economic impacts.

SOCIOECONOMIC IMPACTS OF COVID-19 3

Bolivia

n Bolivia, the impact on the economy from trade disruptions, international travel restrictions, Iand local lockdown and restrictions have impacted the incomes and livelihoods of both formal and informal workers. The decline in GDP growth caused by the pandemic has halted many sectors, including exports, agro-industries, raw materials production, and construction. The high amount of informal work in Bolivia makes the economy especially vulnerable to any decreases in economic activity. Informal workers typically lack job security, employment benefits, severance, have an average lower pay, and reduced savings. Thus, it is not surprising that the proportion of informal workers in a household decreases as income distribution rises. The impact on the poor will be significantly greater as they will be more likely to lose their source of income and have little resources to sustain themselves.

CESO’s Country Representative in Bolivia reports that a decline in remittances began in the first two months of 2020, and had a negative impact on family incomes. As for businesses, many have been affected with retail stores and restaurants closing, resulting in a rise in the unemployment and underemployment rate. Formal employment has been particularly impacted. As a consequence of this decrease in employment, families have had to reduce consumption. However, many have also adapted. For example, restaurants have pivoted to food delivery services while groceries and street food sales have increased. The percentage of workers in the informal sector is also expected to increase from 60% to 70%. Since many people do not have consistent access to technology, e- commerce sales have not increased as much as they have in other countries.

In a survey conducted by the National Chamber of Commerce on entrepreneurs during COVID-19, it was revealed that 6 out of 10 experienced a reduction in income greater than 70%; 17% reported having to shut down operations; and 9 out of 10 tourism companies reported generating no income at all as a result of the lockdown. For most of these entrepreneurs, the loss of liquidity is the biggest problem as they are unable to pay their employees or rent.

Micro, Small and Medium Enterprises (MSMEs) have been particularly affected in Bolivia. Making up over 90% of the country’s enterprises and generating 85% of national employment, MSMEs are a critical part of Bolivia’s economy. Mostly operating in the domestic market, many business owners have experienced reduced economic activity and an inability to repay their loans due to lockdowns and restrictions put in place. MSME owners marched in the streets on June to demand

SOCIOECONOMIC IMPACTS OF COVID-19 4 the government provide them support to keep their businesses afloat. Some of their demands included that their businesses be freed from the lockdown limitations, and that their credit payments be deferred. These businesses are at greater risk of disappearing as the economic impacts of COVID-19 continue to unfold. To adapt to the new environment, some MSMEs in garment manufacturing have started producing face masks. Agribusiness MSMEs have seen a reduction in their operations as a result of restrictions, but they continue to produce and process goods. Service- providing MSMEs, such as transport and constructions, started a gradual reopening in August 2020. For all these enterprises, however, innovation and adaptation will be needed to survive in the new environment. For example, restaurants have resorted to food delivery and e-commerce sales have increased, although not significantly as many people do not have access to internet services.

The environment has been negatively impacted by the COVID-19 pandemic in two ways. First, the treatment of waste products such as latex gloves and face masks may create a contamination problem in the future. Second, Amazon forest fires are at their highest point in a decade, damaging forest reserves and protected areas.

Gender Equality

Women’s livelihoods and economic empowerment are more vulnerable to the socio-economic impacts of COVID-19 given their prevalence in the health care sector and as domestic workers in the informal sector. In Bolivia, women health care workers have the most contact with COVID-19 patients and are therefore more likely to catch the virus. In the informal economy, 97% of domestic workers are women. As this work relies on being in the home and close interactions, many have been out of work. In addition to challenges with employment and earning income, some women are also doing three times more work at home where they take on extra care responsibilities for family members that remain at home. With schools closed, many women no longer have the time to engage in economic activity due to an increased unpaid care load.

As well as women, Indigenous people are facing challenges amidst the COVID-19 pandemic, particularly in moving and selling their products, which are typically agricultural or hand-made. Additionally, as most of the information surrounding the virus is in Spanish, indigenous peoples are also facing a lack of information about prevention and protection. Thus, Indigenous populations face a higher risk of catching and spreading COVID-19.

Indigenous women in Bolivia have managed to find opportunity amid the COVID-19 pandemic by producing face masks. As well as earning an income for Bolivian Indigenous women and providing

SOCIOECONOMIC IMPACTS OF COVID-19 5 protective equipment made out of sheep and llama wool, these masks are designed in ways that bring attention to the lives and culture of their indigenous communities, promoting their visibility in society. Because of their local success, these indigenous seamstresses have made their own company and they plan to market these decorative masks internationally.

Indigenous populations are at risk from the health impacts of COVID-19 pandemic due to a lack of information, the result of a gap in disaggregated data on mortality rates, infection rates, etc. Therefore, there is no health policy specific to these Indigenous populations, making them more vulnerable to the health effects.

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Agribusiness

Bolivia’s agribusiness value chains have been impacted by COVID-19 through restrictions on work and travel. Before the pandemic, farmers relied on traveling from their farms to various markets across cities to sell their produce but with COVID-19, people have been following safety measures and staying home. The government quarantine makes allowances for farmers, who can work until noon to ensure food supply is guaranteed. However, this has still restricted farmers. One farmer reports to the Food and Agriculture Organization of the United Nations (FAO), that his family and he used to work four hours in their greenhouse but have had to reduce this to one hour. With market access reduced, farmers are shortening the value chains and making home deliveries to households in the city, however, this often results in lower sales due to the additional time spent traveling.

COVID-19’s impacts on production, transport, and marketing have had a negative effect on Bolivia’s agricultural,

SOCIOECONOMIC IMPACTS OF COVID-19 6 forestry, livestock, and fishery sectors. However, agribusiness has been the least impacted by the pandemic. To overcome some difficulties related to transport and lockdown, some producers have adopted small-scale production for sale in local areas. Additionally, greenhouse agricultural production has increased, as families in urban and peri-urban agribusiness become critical to ensuring the food security of Bolivia’s cities.

FAO is assisting Bolivian food producers by coordinating with the Ministry of Productive Development and Plural Economy to facilitate more efficient movement and to train them on necessary security and sanitary measures. As part of the United Nations socio-economic response, the United Nations Development Programme is working to apply biosafety measures and improve the gender focus of business models in order to increase the resilience and recover or maintain employment of medium and small enterprise and agricultural workers.

Tourism and Hospitality

Bolivia’s tourism and hospitality sector is an important contributor to the economy – equal to 2.41% of GDP in 2018 and directly accounting for more than 110 000 jobs that are now at risk from COVID-19. Due to worldwide travel restrictions and restrictions within Bolivia, the tourism sector is at risk of losing US$890 million in 2020 with domestic travel losses equal to US$530 million. Therefore, it is fair to assume that domestic tourism was important in Bolivia, even before the pandemic, and as domestic tourism is estimated to recover before international tourism, Bolivia’s tourism sector could recover quicker with a targeted focus on domestic and regional tourists.

One tourism business owner in La Paz, Bolivia claims that, almost overnight, his business had gone from 2000+ customers a month to zero. Working with the Ministry of Tourism for ideas, this business owner decided to explore virtual options and started offering guided virtual trips to meet a llama herder, llamas, and learn a bit about Bolivia. Reportedly this new business venture, CallALlama.com, has worked with graduating students and businesses trying to provide some stress relief for their employees. While small, this virtual idea has managed to provide some income for the business and the Bolivian tourism sector as well as for the llama herders they connect with.

According to a survey on the tourism sector in Bolivia, the industry is expected to contract as millions are lost in revenue and over 100 000 people are left without work. Over half of the microenterprises in the sector reported plans to close their tourism business or switch the focus to a more resilient sector.

National Response

The International Monetary Fund reports the Bolivian government’s national responses to COVID-19 as of May 20. These measures include: direct relief payments to households with children in public schools, which was extended to private school children on May 18; food delivery

SOCIOECONOMIC IMPACTS OF COVID-19 7 to 1.5 million families; forgiving electric energy bills of consumers with low consumption for three wfp.org months; forgiving 50% of potable w at e r a n d g a s b i l l s fo r a l l households; provide US$73 to citizens who did not receive benefits or salary from the public or private sector; postpone tax payments; and the creation of a fund of $US219 million to support micro, small, and medium business operations.

According to CESO's Country Representative in Bolivia, the government reacted relatively appropriately to the pandemic with a special support program set up for MSMEs and various subsidies for families and individuals. This MSME Special Support Program aimed to ensure resources, up to USD$215 million, are allocated in a way that safeguards employment and the continuity of business operations. Economic subsidies to the population, including women and girls, include the Bono Canasta Familia, a family subsidy, was a one-time subsidy that temporarily reduced electricity rates; and the Bono Universal, a universal subsidy which granted US$72 to Bolivians aged 18-60 years. However, protection measures were less effective due to a resistance from some parts of the population and a lack of foresight and organization by the government. The national response was decentralized to departmental and municipal levels but given the global information about the pandemic and the standstill of production, the government’s response was less than adequate.

International Response

The UNDP is supporting the socio-economic impact and recovery of Bolivia through data gathering and analysis on the short, medium, and long-run socio-economic impacts of the pandemic; an impact assessment on human development and sustainable development goal achievement; and the design of innovative solutions to help the recovery of vulnerable households and micro and small businesses.

The Inter-American Development Bank (IDB) is also supporting the response to COVID-19 in Bolivia with a loan to support MSMEs short-term financial sustainability and employment. At US$130 million, this loan targets 12 000 affected MSMEs, providing more than 30% of resources exclusively for women-owned companies.

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SOCIOECONOMIC IMPACTS OF COVID-19 8 References

“The COVID-19 Attack on Latin America: Proposals for an Effective Response.” Webinar. Center for Global Development. July 22, 2020. https://www.cgdev.org/event/covid-19-attack-latin-america-proposals-effective-response

“Face masks as opportunity for Bolivia’s indigenous women.” DW. June 18, 2020. https://www.dw.com/en/face- masks-as-opportunity-for-bolivias-indigenous-women/av-53856640

“In times of COVID-19, Bolivian urban farmers rethink their ways of working.” Food and Agriculture Organization of the United Nations. May 4, 2020. http://www.fao.org/fao-stories/article/en/c/1272851/

“Support to the National Response and Recovery to Contain the Impact of COVID-19.” UNDP Bolivia. June 12, 2020.

“Take Five: ‘What we are going through right now is a life lesson for everyone.’” UN Women. May 9, 2020. https:// reliefweb.int/report/bolivia-plurinational-state/take-five-what-we-are-going-through-right-now-life-lesson

“Bolivia will support sustainability of MSMEs in the face of COVID-19 crisis with the IDB.” IADB. July 23, 2020. https://www.iadb.org/en/news/bolivia-will-support-sustainability-msmes-face-covid-19-crisis-idb

“Drowning in debt, Bolivia’s small business owners ask for help.” La Presna Latina Media. June 17, 2020. https:// www.laprensalatina.com/drowning-in-debt-bolivias-small-business-owners-ask-for-help/

“National Policy Responses to COVID-19.” International Monetary Fund. May 20, 2020. https://www.imf.org/en/ Topics/imf-and-covid19/Policy-Responses-to-COVID-19

“Support to the National Response and Recovery to Contain the Impact of COVID-19.” UNDP

Ana M. Lopez. “Bolivia: economic impact of COVID-19 on tourism by sector 2020.” Statista. June 16, 2020. https:// www.statista.com/statistics/1115002/coronavirus-economic-impact-tourism-bolivia/

Corinne Whiting. “Next video conference meeting? Call a Llama.” Seattle Refined. June 10, 2020. http:// seattlerefined.com/lifestyle/video-chat-with-a-llama-and-help-out-of-work-tourism-in-the-process

Matias Busso, Juanita Camacho, Julian Messina, Guadalupe Montenegro. “The challenge of protecting informal households during the COVID-19 pandemic: evidence from Latin America.” Inter-American Development Bank. June 2020. https://publications.iadb.org/publications/english/document/The-Challenge-of-Protecting-Informal-Households- during-the-COVID-19-Pandemic-Evidence-from-Latin-America.pdf

Pablo Castaño. “The Mobilization of Bolivian Domestic Workers.” Women in Informal Employment Globalizing and Organizing. January 2018. https://www.wiego.org/sites/default/files/publications/files/ Castano_Mobilization_Bolivian_Domestic_Workers_WIEGO_OB10.pdf

SOCIOECONOMIC IMPACTS OF COVID-19 9 Colombia

espite an early start to lockdown and prevention measures, Colombia has a high death rate, Dwith near 300 deaths daily, according to CESO’s Country Representative in Colombia. The economic impacts have been significant and the slow and partial reopening in June saw little improvement for those affected during the lockdown. The most affected sectors were tourism, commerce, entertainment, and parts of the manufacturing sector – in total, this is 9.2 million workers who were negatively impacted. In a survey conducted in May by Innovations for Poverty Action, half of the households that reported at least one working member in February had not worked at all in the previous week. Of the half still working, 16% reported working less and 21% reported earning less. Additionally, over 30% of surveyed households had depleted their existing savings; over 20% reported taking out a loan they were unsure they could pay back; and over 10% had said they skipped a current loan payment. To cope with this reduction in income, approximately one third of respondents reported reducing their meal sizes at least three times in one week while 40% had skipped meals.

In the survey, the informal sector workers were more likely to report their workplace had closed and less likely to report working from home. Around half of the workers in Colombia work in the informal sector and thus are more likely to be paid below minimum wage, have a low savings capacity, not contribute to health care or pension schemes, and not be eligible for unemployment or receive severance. These workers are more likely to see their income reduced because the lockdown keeps them from going to work or, if they ignore the confinement rules, because of the reduced demand for their products or services. The reduction in income results in a reduction in demand for goods and services while the reduction in labor leads to a reduction in supply for goods and services. Thus, with lower purchasing power and limited access to products, the risk of food insecurity and poverty increases. From 2002 to 2018, the number of Colombians living under the poverty line decreased from approximately 50% to 27%. This progress could potentially be reversed by the socio-economic impacts of the COVID-19 pandemic. Additionally, the pandemic’s impact on vulnerable populations, including those suffering from armed conflict, and natural disasters, displaced people, and women, will be more severe as the crisis is expected to exacerbate existing inequalities.

Micro, small and medium enterprises (MSME) are reportedly requiring more support amidst the COVID-19 pandemic, particularly in meeting their financial needs for working capital. In Colombia, most MSMEs are accessing this liquidity with help from the government and the

SOCIOECONOMIC IMPACTS OF COVID-19 10 financial sector. Despite the decline in revenues and uncertain future most MSMEs are facing, the International Labor Organization reports a relative optimism about the future in Colombia. A survey conducted by Fundación Capital on the impact of COVID-19 on Colombian small businesses found that decreased sales and staff layoffs have been the main impact.

The environmental impacts of COVID-19 have also been negative in Colombia as illegal mining, cattle, and deforestation are on the rise. Additionally, the increased of single-use plastics is creating more waste and pollution in Colombia, damaging efforts to achieve environmental sustainability.

Gender Equality

Colombian women are more likely to work in the informal sector, have a higher rate of unemployment, and generally earn a lower income. Additionally, there is a higher percentage of women than men in microenterprises and vulnerable sectors, making them more economically vulnerable to the impacts of COVID-19. Women-headed households make up 40.7% of households in Colombia, with 29.6% of these living below the poverty line. Therefore, the loss of income could increase food insecurity and make escaping poverty much more challenging. Much of this group’s survival depends on their daily inflow of income and the closures in Colombia prevented them from accessing this, exacerbating their already precarious economic and financial situation. Within the health and social sectors, women are 74% of the employees, putting them at greater risk for contracting the virus. Due to the lockdown, care responsibility at home has increased for women along with the risk of domestic violence for women and girls. As well as women, Indigenous people are vulnerable because they lack institutional support and access to health services.

Agribusiness

The COVID-19 pandemic has highlighted existing inequalities in the Colombian agribusiness sector, particularly among smallholder farmers and large producers. The government acted to protect the sector by launching the Colombia Agro Produce, a credit scheme worth approximately US$411 211 to supply seeds and other inputs for the support of agricultural operations. This scheme was quickly monopolized by large-scale producers until this was exposed in the media and these producers were then excluded. However, as of May 2020, still only 20% of the available funding from the Colombia Agro Produce scheme has been requested. When surveyed, many smallholders reported having not received any information or technical help to enable them to access this aid.

SOCIOECONOMIC IMPACTS OF COVID-19 11 The decline in floriculture has hit Colombian agri-SMEs particularly hard as flower exports are one of Colombia’s greatest source of foreign currency. Additionally, 61% of Colombia coffee growers have reported concerns about the upcoming harvest due to reduced agricultural labor. Despite mitigation measures such as using community or family labor, many producers still expect a harvest loss greater than 30%. As the virus continues to spread, the health risk to the labor force of agri- SMEs will become greater, particularly for older employees.

Much of the rural population participates in agribusiness. Thus, the typically lower income level of the rural population makes these workers more vulnerable to negative impacts of COVID-19. Rural women, for example, have experienced a tripling of their workload as household consumption plots have grown, requiring additional work, and domestic work has also increased as the family stayed home during the lockdown.

While the government provided passes to farmers to make it easier for them to move around during the lockdown, there were still issues with informal food distribution and smallholder local farmers selling their produce. To remedy this, citizens and farmers began using social media apps such as WhatsApp to create distribution chains that allowed fresh produce to be distributed locally. Additionally, a local platform called Compra Local, has been launched that allows producers to sell their crops on digital farmers markets. In its first three days, Compra Local sold 8.2 tons of local produce. While these small producers are benefitting from organic production and distribution chain shortening initiatives, large producers with complex distribution systems are facing challenges.

Tourism and Hospitality

Tourism was a growing source of revenue for Colombia before the pandemic hit. Between 2006 and 2019, the sector saw growth of 300%, and in 2019 it employed 1.4 million people and contributed 3.8% to national GDP. Since COVID-19 however, travel restrictions and closures have left hotels with an occupancy rate below 3% and approximately 235 000 jobs have been impacted,

SOCIOECONOMIC IMPACTS OF COVID-19 12 according to the Colombian Ministry of Industry, Commerce, and Tourism. To address the pandemic’s negative impacts on the sector, the government will subsidize 1500 tour guides for three months and exempt tourist and hotel services from value-added tax until December 31st 2020. Long-term solutions will be necessary to protect the ecotourism sector from the pandemic’s potential impact on conversation and development. In an interview, a tour guide revealed that he was asked about returning to work on illicit crop plantations, something many tour guides made their livelihoods doing before tourism became a viable source of income in Colombia. Thus, Conversation International warns that COVID-19 could result in illegal agricultural expansion and mining, reversing recent development progress.

However, some in the tourism sector see an opportunity for ecotourism after the pandemic as people may opt for less crowded vacations. The president of ProColombia, a government tourism agency, thinks that birdwatching may be an expanding niche within the tourism industry as tourists search for more activities centered in nature. Additionally, ecotourism will become more viable as infrastructure improves – currently, the government is working to improve WiFi access in these remote areas.

National Response

Colombia’s response to the COVID-19 pandemic began early relative to the spread of the virus in the country and implemented a strict lockdown at the end of March. Because of this, Colombia initially avoided high death rates and has experienced a slower spread than other countries in the region. However, as cases continue to increase, many people are feeling ‘lockdown fatigue’ and spending less and less time in their homes.

The government is addressing the socio-economic impacts of COVID-19 on Colombia through a number of measures. These measures are intended to protect formal employment, long-term productivity, and formal and informal workers. According to the International Monetary Fund (IMF), the policies include: credit lines to the coffee and education sectors, health providers, and tourism businesses; credit lines for small and medium enterprises payroll and loan payments; additional benefits for the recently unemployed; expanded cash transfers for vulnerable groups; and delayed payment of utilities for poor households. Despite these vaonews.com measures, CESO’s Country

SOCIOECONOMIC IMPACTS OF COVID-19 13 Representative in Colombia reports that many people do not receive these credits and subsidies and more support should be given to local entrepreneurs and food distribution channels.

International Response

The United Nations Development Programme (UNDP) is supporting the preparation, response and recovery of Colombia amid the COVID-19 pandemic. Its assistance covers three pillars: strengthening health systems, inclusive and multi-sectoral crisis management response, and socio- economic impact and recovery. Within the third pillar, socio-economic impact and recovery, the UNDP is providing support in several ways: i) socio-economic impact and needs assessment; ii) human development and COVID-19 report and a multidimensional poverty index and COVID-19 report; iii) improving access to finance, contributing to jobs, and a cash-for-productivity scheme; iv) platform for articulation, innovation, and financing for micro, small, and medium enterprises that provides a combination of blended finance with crowdfunding, crowdfactoring, crowdfinancing, and crowdinvesting; v) combat food insecurity, boost human development through the implementation of rural nodes; and vi) support former combatants with peace and development programs that foster production.

The International Fund for Agricultural Development (IFAD) is supporting Afro-Colombians during the COVID-19 pandemic through a partnership with ACUA Foundation, a not-for-profit that helps Afro-descendants in Brazil, Colombia, Ecuador, and Peru. Through this partnership, the organizations are working to mitigate the social and economic impacts of the virus by exploring ideas that will enable the Afro-Colombian communities to maintain or create new links to markets. For example, IFAD-ACUA programme is assisting some communities through the selling of handmade soap.

SOCIOECONOMIC IMPACTS OF COVID-19 14 References

“Colombia: IFC $100M Loan to Davivienda Supports Women-owned SMEs, Housing, Agribusiness.” FinDev Gateway. May 8, 2020. https://www.findevgateway.org/news/colombia-ifc-100m-loan-davivienda-supports-women- owned-smes-housing-agribusiness

“Coronavirus in Colombia: vulnerability and policy options.” #COVID19 Policy Document Series. UNDP Latin American and the Caribbean. May 2020.

“No ordinary solution: Afro-Colombian ingenuity in the fight against COVID-19.” IFAD. May 12, 2020. https:// www.ifad.org/en/web/latest/story/asset/41910623

“Agri-SMEs operating in uncertain financial, operational, and supply chain conditions.” Rural and Agricultural Finance Learning Lab. May 27, 2020. https://www.raflearning.org/post/covid-19-emergency-briefing-agri-smes- operating-uncertain-financial-operational-and-supply

“Covid-19 and food security | In Colombia, the health crisis is exacerbating the inequalities between small- and large- scale producers.” Cirad: Agricultural Research for Development. May 19, 2020. https://www.cirad.fr/en/news/all- news-items/articles/2020/science/covid-19-food-security-colombia

“MSME Day 2020: the COVID-19 pandemic and its impact on small business.” International Labor Organization. June 26, 2020. https://www.ilo.org/empent/whatsnew/WCMS_749275/lang--en/index.html

“Policy Responses to COVID-19.” International Monetary Fund. July 14, 2020. https://www.imf.org/en/Topics/imf- and-covid19/Policy-Responses-to-COVID-19#C

“Support to the National Response and Recovery to Contain the Impact of COVID-19.” UNDP Colombia. 2020.

Camilo Bresciani. “Market insights: Monitoring the business impact of COVID-19 on Colombia.” EDC. April 30, 2020. https://www.edc.ca/en/blog/market-insights-colombia-covid-19.html

Juan Zuluaga Orrego and Guido Santini. “City region food systems in Medellin, Colombia: A pathway of governmental and territorial integration to face the COVID-19 crisis.” Food and Agriculture Organization of the United Nations. April 29, 2020. http://www.fao.org/in-action/food-for-cities-programme/news/detail/en/c/1273338/

Leonie Rauls. “How Tourism Can Jumpstart Colombia’s Economy.” Americas Quarterly. June 22, 2020. https:// americasquarterly.org/article/how-tourism-can-jumpstart-colombias-economy/Colombia

Mauricio Romero. “How are small businesses in Colombia coping with the pandemic?” Aspen Network of Development Entrepreneurs. July 15, 2020. https://www.andeglobal.org/blogpost/920159/352225/How-are-small- businesses-in-Colombia-coping-with-the-pandemic

Priscyll Anctil Avoine. “Opinion – COVID-19 in Colombia: Migration, Armed Conflict and Gendered Violence.” E- International Relations. June 10, 2020. https://www.e-ir.info/2020/06/10/opinion-covid-19-in-colombia-migration- armed-conflict-and-gendered-violence/

Sebastian Chaskel, Kyle Holloway. “Supporting the Most Vulnerable Amid the Risk of Returning to Poverty: What the RECOVR Survey Tells Us about Pandemic Response in Colombia.” Innovation for Poverty Action. July 8, 2020. https://www.poverty-action.org/blog/supporting-most-vulnerable-amid-risk-returning-poverty-what-recovr-survey- tells-us-about

SOCIOECONOMIC IMPACTS OF COVID-19 15 Ecuador

cuador is one of the most impacted countries in the region by the COVID-19 crisis. The Egovernment responded with measures to stop the spread of the virus, but these measures have put pressure on both the formal and informal economy. As a result of the pandemic, the country’s unemployment rate is expected to increase along with its population in extreme poverty, according to World Bank projections. The International Monetary Fund estimates a decrease of 10.9% from 2019 to 2020 for the Ecuadorean economy, making it the second most affected in the region. A short survey of 528 persons of concern (mostly Venezuelan refugees) conducted by the United Nations High Commissioner for Refugees revealed that 70% of businesses owned by respondents had closed operations and 30% had partially closed operations. Venezuelan refugees are especially vulnerable to the negative economic impacts of the pandemic. As most of them are employed in the informal sector, they lack a social safety net and have been unable to make an income staying inside their homes. Because of this, they have been unable to afford rent or food and many have been evicted to end up on the streets as victims of xenophobia and discrimination. According to CESO’s Country Representative in Ecuador, while there is no official data on micro, small, and medium enterprises (MSMEs) in Ecuador, many businesses have been forced to close or adapt by moving their operations online.

The CESO Country Representative reports that between March and June of this year, the main sectors that have been impacted are commerce, services, and industries while agriculture and the financial system were less affected. According to the International Labor Organization (ILO), an estimated 500 000 jobs may be lost in Ecuador. This 8.9% rise in unemployment is projected alongside an increase in inadequate employment from 57.1% in June 2019 to 67.4% in the same period this year.

The Economic Commission for Latin America and the Caribbean has reported a significant decrease in air pollution in Quito, Ecuador from 2019 to 2020. These observed decreases may be a temporary consequence of the lockdowns and general reductions in activity. It is likely then, unless production, consumption, and labor practices adjust in a way that is beneficial to air quality and the environment, we will see a significant increase in pollution of breathable air in Quito once the pandemic ends.

SOCIOECONOMIC IMPACTS OF COVID-19 16 Gender Equality

In Ecuador, women have a much higher burden of at-home care than men, spending an average of 27 more hours on unpaid care work than men. The COVID-19 pandemic has exponentially increased this burden of care, widening the unequal division of labor and negatively impacting the physical and mental health of women. This extra time devoted to unpaid work reduces the time they could spend on paid work.

According to CESO’s Country Representative in Ecuador, as of August, there has been no official information regarding the impacts of COVID-19 on women in Ecuador. However, given that more than half of women in Ecuador work in precarious sectors –in the informal sectors, with low wages and no access to job security or social protection – we can predict a deeper negative impact on women than other groups in society. Additionally, women in health, where they represent 72.8% of the sector, are facing increased workloads both at home due to school closures, and at work.

Women’s employment in Ecuador is mostly focused on the informal sector, with many of them earning an income as domestic workers. 11.4% of employed women are domestic workers who face increased challenges from movement restrictions that prevent them from accessing their jobs. In addition, 76% of female domestic workers are without formal labor contracts, making their livelihoods vulnerable to external shocks like COVID-19. The pandemic has either resulted in domestic workers continuing to work in precarious situations or in the complete loss of their source of income.

Ecuadorian indigenous women report that, along with COVID-19, their communities are experiencing climate change-induced flooding – further exacerbating the risk of food insecurity. The pandemic is creating challenges accessing assistance in the form of food aid, as the flooding has destroyed houses, schools, and crops.

Agribusiness

The agribusiness sector experienced a negative impact from the COVID-19 crisis due to the movement restrictions implemented. This prevented people from going out to shop for agriproducts however e-commerce opportunities are being developed to enhance customer reach.

SOCIOECONOMIC IMPACTS OF COVID-19 17 For much of the population in Ecuador, the lockdown put in place to prevent further spread has resulted in income loss and reduced access to food and clean water. Most affected by potential food crises are the Venezuelan migrant populations and other vulnerable groups. As a net food importing country, trade constraints could be significantly harmful to the food supply in Ecuador. Additionally, the restrictions resulted in reduced access to markets for smallholder producers, which led to loss of income. This was experienced in Huamboya community in the Morona Santiago province where families faced challenges accessing fresh products including milk, eggs, and vegetables. Some individuals were able to find innovative solutions to address these challenges. For example, one milk producer however, realizing that he was unable to sell his milk in markets, opted to drive around his community and distribute it for free. According to the Food and Agriculture Organization, Ecuador and its neighbors have been working together to strengthen food value chains and prevent a food crisis, and as a result the situation has been improving since March. In particular, the fisheries sub-sector is Ecuador has been affected, with mahi mahi experiencing a significant drop in demand primarily as a result of the lack of tourists.

The World Food Programme (WFP) is providing support to the agribusiness sector in Ecuador through financial support to vulnerable families with pregnant and lactating women and families with children under 18 years (previously only applied to children under five years). In a rapid joint need assessment with UNHCR and UNICEF, WFP found that as a result of COVID-19 restrictions, 63% of surveyed households had zero income source, 90% were in need of food. Of this, 31% did not have access to adequate food while 11% had no access to food. The WFP has funded an emergency fund with aid from Canada’s Department of Foreign Affairs, Trade, and Development to assist in the response to COVID-19 in Ecuador. The WFP is also helping women earn a living in indigenous communities by training them on climate-smart farming.

SOCIOECONOMIC IMPACTS OF COVID-19 18 According to CESO’s Country Representative in Ecuador, after a challenging first few months of lockdown with regard to distribution and logistics, the agribusiness sector is fairing relatively well. Many SMEs in this sector are looking into how to develop their own process of distribution with some using social media to brand, market and sell their products.

Going forward, some of the assignments in the agribusiness sector will be challenging to carry out virtually, reports the Country Representative. For example, policy support, evaluation, and analysis of agricultural practices can be done virtually but some projects surrounding farming techniques and cultivation may need more hands-on training. The COVID-19 pandemic has provided an opportunity for businesses in agribusiness to focus more on local markets and less on exports.

Tourism & Hospitality

Although all of Ecuador is severely impacted by the collapse of international tourism, the area most affected is the Galapagos Islands. Previously receiving approximately 800 visitors daily, this number has dropped to zero and officials estimated in May that the isolated islands had already lost US$50 million, the equivalent of one quarter of annual expected income. Most of the locals involved in the tourism and hospitality industry are no longer receiving income, with one guide and scuba teacher reporting that he was ‘immediately jobless’ after stepping off his boat one day. Due to these reductions in income as well as slower and less frequent cargo ships, islands have started to grow their own food to ensure their food security. The COVID-19 shock to an island so dependent on tourism has some residents wondering if they need to make a change or hold out hope that the tourism industry revives itself and they can once again depend on it for their livelihoods.

A CESO client, Galería Ecuador, was forced to close the doors of four stores in Quito as a result of reduced sales due to the COVID-19 pandemic. Along with their business, the closing of these stores negatively affects hundreds of artisans who relied on Galería Ecuador as showrooms for their products. Other clients of CESO have similar stories and many in the industry are migrating from tourism to agriculture projects, according to CESO’s Countr y Representative in Ecuador. In the municipality of Santa Cruz many have begun developing urban farming, small cultivation projects that are distributed between locals. While there has been a reduction of international tourists, the recovery of the sector may see a shift in the popularity of tourism sites, with opportunities growing in rural areas in home rentals instead of crowded hotels and resorts.

SOCIOECONOMIC IMPACTS OF COVID-19 19 National Response

According to the International Monetary Fund (IMF), the Ecuadorian government has implemented several measures to support businesses, households, and individuals throughout the COVID-19 pandemic. These measures include cash transfers to poor families, distribution of food baskets, and extension of credit lines to small and medium size businesses. The government is funding this in part with tax revenues from companies that have earned over US1 million in 2019 and individuals with a monthly salary over US$500. A law has also been proposed that aims to make labor contracts more flexible.

Measures to prevent the spread included the closure of schools, universities, and public spaces as well as the implementation of a curfew. These measures were partially lifted at the beginning of June but a curfew remains in place (albeit reduced) and the movement of vehicles is restricted to circulating on even and odd days.

According to CESO’s Country Representative, the lack of data and resources created challenges for the government in determining the best course of action and ensuring a prompt and adequate reaction. Thus, the government’s response to the pandemic was ill prepared to address the economic impact on women and girls. Recovering from the COVID-19 will have significant challenges, namely, addressing the socio-economic crisis and ensuring income and employment protection, unemployment benefits, and basic emergency income for vulnerable groups. Given a lack of resources, this will be difficult for the government of Ecuador to achieve. Understanding how the virus develops in the future and whether a vaccine will become available, will be a challenge in the development of any recovery plans. Digitalization of education and work will likely be ushered in much faster than was previously estimated as people remain wary of public spaces.

International Response

The UNDP and UNHCR providing support to Ecuador as it deals with the socio-economic impacts of COVID-19. Together, the organizations are executing a joint strategy that will support small business recovery through #EnMarcheDigital, a programme that will create jobs in delivery services for vulnerable Ecuadorians and refugees.

The UNDP is supporting the socio-economic impact and recovery with an analysis of the macroeconomic impacts of COVID-19 and a post disaster needs assessment with a focus on the impacts and losses in the commerce and tourism sectors with specific attention to gendered effects. The UNDP has also collaborated with the Fundación San Francisco Global, a civil society organization, to design a collaborative citizen platform called “Colaboratorio Ciudadano” (Citizen Collaboratory). With this platform, users will be able to crowdsource needs and locations in real time and citizens can help out with food supply donations, assisting elderly or vulnerable neighbors with groceries, share innovation ideas for pandemic solutions, or exchange goods and services. The platform will connect small businesses, agro-producers, and entrepreneurs with citizens to enable stronger value chain linkages and local shopping.

SOCIOECONOMIC IMPACTS OF COVID-19 20 References

“Support to the National Response and Recovery to Contain the Impact of COVID-19.” UNDP Ecuador. June 22, 2020.

“Ecuador – Livelihoods: COVID-19 Update.” UNHCR. June 22, 2020. https://reliefweb.int/sites/reliefweb.int/files/ resources/Ecuador_Factsheet_Livelihoods_C19_22_june_2020.pdf

“Ecuador’s economy would be the second most affected in the region, according to the IMF.” El Comercio. July 16, 2020. https://www.elcomercio.com/actualidad/economia-ecuador-afectada-pandemia-fmi.html

“Effects of quarantines and activity restrctions related to COVID-19 on air quality in Latin American cities.” Economic Commission for Latin America and the Caribbean. July 2020. https://www.cepal.org/es/publicaciones/ informesCOVID19

“13% of tourism businesses closed in Quito.” El Comercio. August 31, 2020. https://www.elcomercio.com/actualidad/ cierre-negocios-turisticos-quito-pandemia.html

“A small act of kindness during COVID-19 helps Ecuadorian families in need.” FAO. June 1, 2020. http:// www.fao.org/fao-stories/article/en/c/1276812/

“Addressing the impacts of COVID-19 in food crises.” FAO. May 2020. http://www.fao.org/3/ca9192en/ca9192en.pdf

“Ecuador – Livelihoods: COVID-19 Update.” UNHCR. June 22, 2020. https://reliefweb.int/sites/reliefweb.int/files/ resources/Ecuador_Factsheet_Livelihoods_C19_22_june_2020.pdf

“Ecuador will support the financial sustainability of MSEs with IDB support.” Inter-American Development Bank. May 12, 2020. https://www.iadb.org/en/news/ecuador-will-support-financial-sustainability-mses-idb-support

“Ecuador: indigenous women on the frontline.” Latin America Bureau. June 19, 2020. https://lab.org.uk/ecuador- indigenous-women-on-the-frontline/

“In isolated Galapagos Islands, coronavirus wrecks tourism-reliant economy.” Associated Press. NBC. May 11, 2020. https://www.nbcnews.com/news/latino/isolated-galapagos-islands-coronavirus-wrecks-tourism-reliant-economy- n1204636

“Latin American and the Caribbean Rapid Gender Analysis for COVID-19.” CARE + UN Women. June 2020. https:// www2.unwomen.org/-/media/field%20office%20americas/documentos/publicaciones/2020/05/ enlac%20rga%20report%20english%20final%20junio2%201comprimido.pdf?la=en&vs=337

“Policy Responses to COVID-19.” International Monetary Fund. June 29, 2020. https://www.imf.org/en/Topics/imf- and-covid19/Policy-Responses-to-COVID-19

“WFP Ecuador: Country Brief.” World Food Programme. April 2020. https://reliefweb.int/sites/reliefweb.int/files/ resources/WFP-0000116979.pdf

“Women lose most from the climate crisis. How can we empower them?” World Economic Forum. March 2020. https://www.weforum.org/agenda/2020/03/women-climate-crisis-vulnerability-empowerment/

Andrew Hudson. “The ocean and COVID-19.” UNDP. June 8, 2020. https://www.undp.org/content/undp/en/home/ blog/2020/the-ocean-and-covid-19.htm

SOCIOECONOMIC IMPACTS OF COVID-19 21 Guyana

he Inter-American Development Bank (IADB) calls Guyana a ‘commodity-based economy.’ TGiven this, the country is more vulnerable to COVID-19’s impact on trade and commodity prices such as oil, natural gas, and gold. Since December, 2019, Guyana has been a successful oil- exporting country, according to the United Nations Development Programme (UNDP), and was projected by the International Monetary Fund (IMF) to have an economic growth rate equal to 85.6% in 2020. However, given the recent drop in oil prices, the economy is unlikely to reach this estimated level of growth. The impact of this on Guyana’s economy will be a loss of exports resulting from the relative drop in commodity prices which will translate to a loss of income for those employed in the sector. Since Guyana imports many goods and materials, it is expected that the cost of living in the country will increase as supply chain disruptions and travel restrictions reduce imports.

Other sectors in Guyana are particularly vulnerable to the measures imposed by the government to contain the virus – the services sector is 54% of the Guyanese economy and, as it predominantly relies on person-to-person interaction, is struggling with the orders to isolate and social distance. In Guyana and all countries in the Caribbean, UN Women reports that women are predominantly employed in these sectors that serve and work with people while men tend to be employed in industries that are less people-focused. Thus, women will be more vulnerable to the economic impacts of COVID-19 because of their place in the workforce. Additionally, women are expected to be hit harder because more of them are unemployed than men – UN Women shows that 62% of men are employed compared to only 35% of women, despite women having a higher level of education. A higher rate of unemployment among women translates to a lower income level and thus this group are more likely to be harmed by potential fluctuations in food and other commodity prices. Along with tourism and retail, the transport sub-sector has been significantly impacted by mobility restrictions and distancing requirements. Because micro enterprises are the majority of businesses in this sub-sector, the job loss has been high as many enterprises do not have the resources to maintain operations for long without a consistent income.

Information provided by CESO’s Country Representative in Guyana revealed that Indigenous communities have been more negatively impacted, in part because the safety precautions are not being followed or enforced.

SOCIOECONOMIC IMPACTS OF COVID-19 22 Tourism & Hospitality

The tourism sector in Guyana has become an important part of the economy recently. According to the Guyana Chronicle, the industry has become the second foreign exchange earner for the Guyanese economy. As a result of restrictions on travel and services implemented in Guyana to slow the spread of COVID-19, this growing industry may be impacted negatively. Women in Guyana are significantly more likely than men to work in the tourism and hospitality industry – accounting for 10% of employed women compared to less than 2% of employed men, reports UN Women. The prevalence of women in this vulnerable sector suggest that women will feel the impacts of COVID-19 on Source: Tourism Hospitality Association of Guyana tourism most acutely.

In Guyana, a mandatory curfew imposed by the government had most restaurants operating curbside pick-up and delivery until 6pm, missing a profitable dinner-time window for customers. In addition to restaurants, lodges, hotels, and resorts have closed and services such as ferries, speedboat, and tourist activities have been suspended ‘until further notice.’ Therefore, although there have been no assessments to date of the social and economic impacts of the pandemic, the consequences of closed businesses and services for months on end is likely to hit the industry hard. According to CESO’s Country Representative in Guyana, although some businesses have been allowed to reopen and restaurants can serve dine-in customers, many people remain wary due to the rising COVID-19 cases in the country.

The country is working towards supporting the tourism and hospitality industry during the COVID-19 pandemic with the recent announcement of the creation of the Tourism Recovery Action Committee, established jointly by the Department of Tourism in the Ministry of Business and the Guyana Tourism Authority. According to the Guyana Chronicle, the purpose of this committee is “to propose research-based solutions and define viable strategies for the tourism sector through a process of multi-agency and multi-stakeholder collaboration aimed at accelerating recovery from the adverse economic impacts.” Within the committee, there will be subcommittees whose mission is to explore solutions in the following areas: safety and sanitation, strategic marketing, tech-innovation, international partnerships, finance and resource mobilization, communications management, ports and frontiers, product resilience, research and data collection. Therefore, it is fair to assume that the tourism and hospitality sector is well equipped to rise to the challenge posed by the COVID-19 pandemic – it is well-supported nationally, and has the potential to expand into previously unexplored areas within the sector. Tourism will likely be impacted until 2021 however, as the Guyana airport will not completely open until April 2021.

SOCIOECONOMIC IMPACTS OF COVID-19 23 Indigenous people are prevalent in the tourism and logging sectors. Therefore, the impact of COVID-19 on these sectors have a negative affect on the livelihoods of Indigenous populations. According to CESO’s Country Representative, potential partners in the CESO report that tourism and hospitality is paralyzed, with no signs of recovery.

National Response

The national government in Guyana will establish a database to help guide efforts towards alleviating the economic impacts on the most vulnerable populations. Thus far, the Guyanese government has provided food packages for families, individuals, and those most heavily impacted by the COVID-19 prevention measures. Alongside this are value-added tax waivers on medical supplies, value-added tax removed from water and electricity bills and domestic air travel until June 30 and an extended payment on tax advances. To ease the financial burden, the bank of Guyana has urged commercial banks to reduced the interest rate and defer loan repayments, as well as continue ‘an accommodative monetary stance to promote sustained growth and development of the economy.’

In addition to these financial measures of the national governments socio-economic response, the Guyanese Ministry of Business began assisting small businesses struggling to maintain business activities amidst the pandemic by providing relief grants to stay afloat and retain employees. Along with small business relief grants, the Ministries of Business and Agriculture are providing stimulus grants to farmers who are negatively impacted by the COVID-19 pandemic. However, while a few vulnerable people have received support from the government, more people are being helped by initiatives from various charitable entities.

The Country Representative reports that there were no visible measures in place to address the economic impacts of COVID-19, apart from a single use voucher available to some senior citizens. However, with a new government in office in August, a new set of economic policies is expected to be announced.

International Response

The international response to Guyana’s COVID-19 challenges come from the UNDP, who is assisting the national government with its response. The UNDP’s support to Guyana includes: providing nutritional support to people living with HIV; and procuring and distributing food and hygiene items to vulnerable groups. As of June 19, Guyana is not one of the 100 countries benefitting from world bank dedicated COVID-19 fast-track facility or other forms of finance/ redeploying of existing projects.

SOCIOECONOMIC IMPACTS OF COVID-19 24 References

“GTA to launch Tourism Recovery Action Committee.” Guyana Chronicle. June 10, 2020. https:// guyanachronicle.com/2020/06/10/gta-to-launch-tourism-recovery-action-committee?fbclid=IwAR3ENEjTr- Wya2FTYAWaHKMb21Lduk6ZXgiWZreFxlxHArePLKZFTWlmaQM

“Guyana COVID-19 Update.” Guyana Tourism. May 1, 2020. https://www.guyanatourism.com/wp-content/uploads/ 2020/06/Website_Travel-Advisory-Update_COVID-19_2020.05.01.pdf

“Guyana: Government and institution measures in response to COVID-19.” KPMG. April 27, 2020. https:// home.kpmg/xx/en/home/insights/2020/04/guyana-government-and-institution-measures-in-response-to-covid.html

“Status of Women and Men Report: Productive Employment and Decent Work for All.” UN Women. 2019. https:// www2.unwomen.org/-/media/field%20office%20caribbean/attachments/publications/2019/ status%20of%20women%20and%20men-web.pdf?la=en&vs=5426

“Support to the National Response and Recovery to Contain the Impact of COVID-19.” UNDP Guyana. May 8, 2020.

“Policy Responses to COVID-19.” IMF. June 24, 2020. https://www.imf.org/en/Topics/imf-and-covid19/Policy- Responses-to-COVID-19#G

“World Bank Group’s Operational Response to COVID-19 ((coronavirus) – Projects List.” The World Bank. June 26, 2020. https://www.worldbank.org/en/about/what-we-do/brief/world-bank-group-operational-response-covid-19- coronavirus-projects-list

“Weathering the Coronavirus Storm in the Caribbean.” IADB. https://www.iadb.org/en/improvinglives/weathering- coronavirus-storm-caribbean

Krishna Srinivasan, Sònia Muñoz, and Varapat Chensavasdijai. “COVID-19 Pandemic and the Caribbean: Navigating Uncharted Waters.” IMFBlog. April 29, 2020. https://blogs.imf.org/2020/04/29/covid-19-pandemic-and-the-caribbean- navigating-uncharted-waters/

Victor Gauto. “Guyana: Caribbean Economies in the time of Coronavirus.” IADB. https://flagships.iadb.org/en/ caribbean-region-quarterly-bulletin-2020-q1/guyana

SOCIOECONOMIC IMPACTS OF COVID-19 25 Honduras

feedthefuture.gov

efore the pandemic, 40% of Honduras’ total workforce was unemployed, thus the impact of BCOVID-19 has hit the economy hard. The reduction in remittances and the restrictions resulting in closures and reduced mobility have negatively impacted most sectors in the country. The most impacted group will be informal workers who cannot carry out their jobs at home or remotely. These informal workers may lose a critical source of income that they depend on to meet their basic needs. Another important source of income lost will be remittances. The Honduran Central Bank has estimated significantly reduced remittances from those abroad as a result of the pandemic’s impact on other countries’ economies. Nine out of 10 migrants send remittances from the United States and Spain – two countries that have been hard hit by the pandemic. These remittances are the primary source of income for more than half of Honduran households – who have reported using it to meet food, housing, education and health needs. With a reduction in remittance income and significantly reduced prospects for earning an income at home, poor Honduran households will face a much greater risk of food insecurity.

According to CESO's Country Representative in Honduras, the COVID-19 pandemic has resulted in the loss of jobs in many small and medium enterprises that were forced to close. As of August, the number of formal jobs lost in SMEs, which provide up to 70% of jobs, was 175 000 and is expected to continue to increase each day. Only between 13% and 20% of MSMEs in Honduras are still operational. For those who still have work, most are making only a fraction of their pre-COVID income. As a result of reduced purchasing power, consumer purchases in Honduras have dropped considerably, negative affecting the businesses that have managed to survive during the pandemic.

Indigenous people are vulnerable to the pandemic given their limited access to health care, clean water, a nutritious diet, and basic sanitation. Women and girls are another vulnerable group – as people stay home, women and girls are seeing increased incidences of domestic violence. Additionally, the burden of care has traditionally fallen on the women and it is exacerbated at home during the crisis as many have lost their jobs and must tend to their families.

SOCIOECONOMIC IMPACTS OF COVID-19 26 Gender Equality

Women primarily work in the informal sector in Honduras and are more vulnerable to the movement restrictions put in place to stop the spread of COVID-19. There have been reports from women across the informal sector of these impacts. One women can no longer access the market to purchase supplies and thus is not able to sell her products; another mother of two worries that, as she can no longer sell corn cobs and tamales outside the hospital, the pandemic will starve her family; another single mother worked as a domestic worker before COVID-19 arrived in Honduras, but has been unemployed for two months. To make some money, she now sells firewood collected from a riverbank, but this has not been sufficient to feed her family. Lastly, a mother who used to make a living by doing other people’s laundry now reports she has only been able to provide one meal a day for four consecutive days. These women informal workers have no job security and very limited savings to fall back on – their ability to work is directly linked to their ability to meet their basic needs and this has been compromised.

Women maquila workers who work in large factories have been impacted as well, with some having already been forced into impoverishment and begging to support themselves and their family. When the lockdown began in Honduras, maquiladora employers reportedly were deducting holiday and vacation days for the periods the factory was closed and then resorted to suspending contracts for eight to 18 weeks. These workers had little options for recourse, as they were confined to their homes and the respective government offices were also closed.

solidaritycenter.org

Agribusiness

In Honduras, restrictions in movement of transportation, people and produce have created challenges with cross-border trade and access to markets. In particular the loss of employment and income caused by these restrictions has reduced the purchasing power of food for many poor households. As farmers’ incomes are reduced from lower sales and limited access to agricultural inputs, farming areas may be reduced, leading to a lower demand for agricultural labor. Women are especially vulnerable, as rural women are among the poorest in Honduras. Women-headed households are approximately 9% of smallholder holders and generate an income that is 30% less than men-headed households. Additionally more likely to be negatively impacted by the pandemic are small traders, daily laborers, subsistence farmers, Indigenous groups, and families who rely on remittances.

The World Food Programme is supporting Honduras’ agribusiness sector with cash transfers aimed to improve food consumption, dietary diversity, and other food security indicators. This is

SOCIOECONOMIC IMPACTS OF COVID-19 27 complementary to the government’s response which includes a productive solidarity bond and a bond for coffee growers.

Tourism & Hospitality

The halt of international travel will significantly affect the tourism and hospitality sector in Honduras. The sector employs approximately 542 000 people and contributed 14.6% to national GDP. Additionally, the bay islands of Honduras used to rely on increased arrivals of cruise ships in the summer seasons – a significant amount of income that is no longer being generated for the island residents. This reduction in tourism will impact many Honduran households’ ability to meet their basic needs. Some businesses are preparing for when the sector reopens. For example, in Roatan, an island in Honduras, businesses are registering as ‘COVID-19 Responsible’ to assure guests that the risk is as low as possible.

National Response

In response to the socio-economic impacts of COVID-19 on Honduras, the government has implemented numerous fiscal measures to support those affected. Some of these measures include providing unemployment benefits, up to 0.6% of GDP, to formal workers; delivering food supplies to poor families, equal to 0.2% of GDP; and providing cash transfers to informal workers (0.4% of GDP). The government has also froze prices of goods in the basic consumption basket and provided a month of free access to COVID-19 related emergency telecommunications services.

International Response

The Inter-American Development Bank (IDB) is providing support to micro, small, and medium sized enterprises in Honduras with a US$19.96 million loan intended to support employment and overcome temporary liquidity problems that are preventing MSMEs from meeting their financial

caribbeanbusinessreport.com SOCIOECONOMIC IMPACTS OF COVID-19 28 obligations. MSMEs create over 70% of jobs in Honduras and supporting them will provide significant protection for the Honduran economy. The loan is also going to focus on MSMEs in tourism as it is among the hardest hit sector, and is expected to reach 1000 tourism businesses.

The United Nations Development Programme (UNDP) is also supporting the Honduras socio- economic response to the COVID-19 pandemic. This support includes the creation of a policy paper providing solutions for expanding the coverage of cash and in-kind transfers to cover the most vulnerable individuals and businesses in the informal sector. This policy paper will help inform the government’s evolving national response.

caribbeanbusinessreport.com

SOCIOECONOMIC IMPACTS OF COVID-19 29 References

“Coronavirus in Honduras: ‘This pandemic is going to starve us.’” World Food Programme Insight. July 13, 2020. https://insight.wfp.org/coronavirus-in-honduras-this-pandemic-is-going-to-starve-us-fdec39be7cda

“COVID Responsible Businesses on Roatan.” Roatan Tourism Board. https://roatantourismbureau.com/covid- responsible-businesses

“Honduras: IPC Acute Food Insecurity Analysis Project Update (June – August 2020).” Integrated Food Security Phase Classification. July 2020. https://reliefweb.int/sites/reliefweb.int/files/resources/ IPC%20Acute%20Food%20Insecurity%20Analysis%20projection%20update%20%28June-August%202020%29.pdf

“IDB supports the sustainability of MSMEs in Honduras in the face of the COVID-19 crisis.” Inter-American Development Bank. July 24, 2020. https://www.iadb.org/en/news/idb-supports-sustainability-msmes-honduras-face- covid-19-crisis

“Latin America and the Caribbean Rapid Gender Analysis for COVID-19.” UN Women. Care. June 2020. https:// www.care-international.org/files/files/enlac_rga_report_english_final_junio2_1comprimido.pdf

“Policy responses to COVID-19.” International Monetary Fund. July 15, 2020. https://www.imf.org/en/Topics/imf- and-covid19/Policy-Responses-to-COVID-19

“Support to the National Response and Recovery to Contain the Impact of COVID-19.” UNDP Honduras. June 2020.

“WFP Honduras: Country Brief.” World Food Programme. May 2020. https://reliefweb.int/sites/reliefweb.int/files/ resources/WFP-0000117652.pdf

Andrés Ham. “Social and economic impact of the COVID-19 and policy options in Honduras.” UNDP LAC C19 PDS N. 4. March 2020.

Maria Luisa Regalado. “Covid 19 Update: Situation Dire for Women Workers in Honduras’ Maquila Zones.” CoDev. June 2020. https://www.codev.org/2020/06/covid-19-update-situation-dire-for-women-workers-in-honduras-maquila- zones/

SOCIOECONOMIC IMPACTS OF COVID-19 30 Peru

easures imposed by the Peruvian government to prevent the spread include border Mclosures, social isolation, and transport restrictions. These measures have had severe socio-economic impacts on Peru’s economy. The UNDP estimates that four out of 10 businesses may close, seven out of 10 were only expected to stay open until June, and five out of 10 will have challenges meeting their fiscal obligations. Many of vulnerable people in Peru are those who own or work in the small businesses that were critical to the country’s economic resilience during the 2008 economic crisis. These SMEs are expecting significant losses according to the International Labor Organization, with many entrepreneurs estimating losses above 25%.

Despite early and proactive action to stop the spread of COVID-19, Peru has the second highest number of cases in Latin America, after Brazil. Some point to the high degree of informality in the workforce as an explanation for why COVID-19 has spread so extensively as many informal workers have to choose between staying home and losing their livelihoods or making an income and risking infection. A survey done on Peruvian workers during lockdown revealed that 16% of formal workers had lost their income completely, compared to approximately 50% of informal workers. As a result of COVID-19, it is estimated that 84 000 jobs could be lost permanently in Peru, mostly in the formal and informal sector. Informal workers are more vulnerable because of their lack of employment insurance, sick leave, and average negative savings. In Peru, informal workers are concentrated in the bottom quintiles of income distribution, with most of the poorest households having no formal worker household members at all. Thus, these households typically live ‘hand-to-mouth’ are especially vulnerable to shocks that impact their ability to earn a living wage each day.

According to CESO’s Country Representative in Peru, all economic sectors, with the exception of fishing and manufacturing, saw historically low growth rates in the month of June. Many companies in the service, construction, and manufacturing sectors that primarily operate in the formal economy are choosing to become informal businesses as a result of COVID-19 – a better alternative to close their doors entirely.

The Country Representative predicts that a significant number of MSEs will no longer exist after the crisis and thus the recovery of employment will be a challenge. MSMEs are over 99% of Peru’s businesses and generate approximately 85% of national employment and 40% of national GDP. To support the impact on these businesses, the government and the Ministry of Economy and Finance (MEF) created the Reactiva Peru program and the Business Support Fund for Micro and

SOCIOECONOMIC IMPACTS OF COVID-19 31 Small Enterprises (FAE-MSMEs). These measures aim to help companies meet short-term obligations by providing working capital financing through loans and debt restructuring. Unfortunately, the Peru Country Representative reports that the Reactiva Peru program used an ineffective mechanism to reach the MSMEs and is thus deemed unsuccessful. The FAE-MSMEs is specific to MSMEs and contains a higher level of risk than the Reactiva Peru. Thus, the involvement of microfinance institutions is necessary and they must be supported and strengthened.

Gender Equality

Mostly women work in the informal sector so the quarantines, social distancing measures, restriction of movement, and closures of business and economic activity will disproportionately affect them. For Peruvian domestic workers, 95% of which are women, these challenges present critical threats to their livelihoods. Reportedly 70% of domestic workers have lost their jobs in Peru, while some others have been asked to increase their work with no additional pay and prevented from leaving the home they work in. A low paying position before COVID-19, domestic work has become even more uncertain as a result of government measures implemented to prevent further infection of the population.

The impacts on women have been severe. According to the Peru Country Representative, domestic workers, most of them women, have experienced work overload, dismissals, being confined to the workplace, discrimination, and increased health risk. Additionally, women are more common in sectors hit hardest by the pandemic such as commerce and services. A US$110 bond has been delivered by the government to the most vulnerable families every two weeks. Unfortunately, the system for identifying these households is incomplete and thus it is likely these measures will not be sufficient to address the issues faced by women.

As part of the United Nations socio-economic response to COVID-19, the UNDP and Peru’s Ministry of Women and Vulnerable Populations (MWVP) is preparing an analysis to understand the impact on women’s economic autonomy which will provide policy recommendations to improve the response and recovery of the country. The MWVP is also responding to the gendered impacts of COVID-19 in Peru by offering a temporary time.com shelter to women and children who are at risk of gender-based violence.

SOCIOECONOMIC IMPACTS OF COVID-19 32 Agribusiness

The agribusiness sector has been impacted due to the restrictions put in place to prevent the spread of COVID-19. Small producers have been particularly vulnerable, experiencing transportation problems bringing their crops to the market. Additionally, many producers report challenges in harvesting as a result of mobility restrictions. In order to leave their homes and transport their produce to markets, farmers were required to obtain special permits from the government. Even so, certain farmers who relied on school feeding programs to purchase most of their crops have been forced to look for alternatives as these programs have been cut.

Peru’s Country Representative reports that the fishery sub-sector actually experienced growth in the month of June due to a higher number of anchovy catches compared to the previous year.

The agricultural sector experienced a negative growth rate in June, after 10 months of consistent growth. The Country Representative reports that this was a result of poor weather and reduced livestock numbers and areas of cultivation. Additionally, a demand reduction for agri-products is expected to result in a 10% decline in employment.

Online sales have increased dramatically for food, with the Lima Chamber of Commerce estimating that from March to May, e-commerce sales grew by 50%. Some businesses unrelated to agribusiness, such as clothing retailers, have been prompted by this increased demand to start their own online food delivery service. In the long term, the Peruvian Chamber of Electronic Commerce anticipates a 200% increase between 2019 and 2020, indicating its potential contribution to sector recovery.

To reactive the agribusiness sector, the Ministry of Agriculture and Irrigation has been promoting several measures including the Business Support Fund for Agribusiness (FAE-AGRO), which provides working capital credits for farmers to finance the upcoming agricultural season. The FAE- AGRO aims to ensure food security in the future and mainly benefits are small farmers with less than five hectares of land.

The International Fund for Agricultural Development (IFAD) is also contributing to the agribusiness sector response and recovery in Peru. On July 2nd 2020, the organization announced a

SOCIOECONOMIC IMPACTS OF COVID-19 33 project with the government of Peru to and prevent a food crisis by increasing farmers’ competitiveness and resilience. The pandemic and lockdown has negatively impacted family farmers’ ability to access markets and the IFAD funded project will focus on improving productive capacity and market access in 101 districts, with particular emphasis on women and young farmers. Additionally, this project will promote technology that boosts productivity, increases market access, and help to mitigate climate change.

While restrictions have created challenges selling in markets for agro-ecological women farmers in the Andes highlands, they report working harder than before COVID-19 to compensate for the lack of income their husbands are generating, who generally work in construction and other service sectors in the city. With special permission and training on prevention measures, these women continue to set up a stall in the market to provide healthy produce in their communities.

Tourism and Hospitality

The tourism and hospitality sector is among the hardest hit sectors in Peru and the lockdown and travel restrictions have resulted in an almost complete halt to tourism business activities. Due to the extended lockdown, many of these tourism businesses were not receiving an income for a period of three or more months. For informal workers that rely on tourist dollars, these impacts were especially hard. One artisan reports that she lost her income and was struggling to support her family, anticipating months of hardship ahead. Due to the amount of women present in the informal economy and the tourism sector, there have been thousands of jobs lost and many women directly affected. Although the national lockdown was lifted on June 30th 2020, Peru’s infection rate is still rising, and it is unlikely that tourism activities will reach a healthy sustainable level anytime soon.

The largest tourism draw for Peru, Machu Picchu, remains closed despite a scheduled reopen date of July 24. However, the site still plans to open by the end of July, as long as businesses have finalized protocols in place to stop viral spread. To attract tourists, Machu Picchu has eliminated

SOCIOECONOMIC IMPACTS OF COVID-19 34 entrance fees for children, senior citizens, and public service workers – for both national and international tourists. While the site is unlikely to see many international tourists, there is potential for domestic tourism as national flights began operating mid-July.

Within tourism and hospitality, a decrease in employment of 18% is estimated due to border closures, event cancellations, and a severe drop in tourist visits. However, international flights are scheduled to resume on October 1, 2020 and businesses in the sector are already preparing to reopen with new sanitation and hygiene protocols. Some CESO partners, such as AFEET Peru, Tourism Care, and PROMPERU, have been involved in webinars to share information about adapting to the post-pandemic environment and ideas about domestic tourism. These partners are looking to promote local tourism with a focus on nature and health.

Resources for MSMEs in the tourism sector are provided by the Business Support Fund for Tourism businesses (FAE-Tourism) created by the Minister of Foreign Trade and Tourism and will be accessible in the early fall 2020.

National Response

The Peruvian government has a fiscal support package of over 7% GDP to support the socio- economic impacts of COVID-19 on Peru. Included in this package are: 1.1% of GDP in direct transfers to vulnerable households; a three month extension of income tax declarations for small and medium sized enterprises; flexibility in repayment of tax liabilities to enterprises and households; a 0.1% GDP fund to help qualified SME’s refinance their debts and secure working capital; and a postponement of electricity and water bill payments for households as well as an electricity payments subsidy of 0.1% GDP.

SOCIOECONOMIC IMPACTS OF COVID-19 35 International Response

In addition to the WFP and IFAD, the UNDP is providing support to Peru in three parts: strengthening health systems, ensuring an inclusive and multi-sectorial crisis management response, and socio-economic impact and recovery. Within socio-economic impact and recovery, the UNDP is undertaking multiple studies to analyze the impacts and provide recommendations: impacts on vulnerable populations above and below the poverty line; solution mapping for innovative methodologies; impacts on families according to their income; mapping of populations most vulnerable to economic impacts; specialized impact study on Venezuelan refugees and migrant populations; and socio-economic impact on indigenous peoples livelihoods and economy.

Additionally, the UNDP is working on an Amazon Fintech Challenge to identify start-ups that could contribute to the financial inclusion of indigenous peoples. The UNDP is also supporting craft fisheries economic recovery through strengthening their governance, spatial marine or coastal planning, and sustainable management.

SOCIOECONOMIC IMPACTS OF COVID-19 36 References

“Coronavirus in Peru – The Latest Updates.” Amazonas Explorer. July 23, 2020. https://amazonas-explorer.com/is- there-coronavirus-in-peru/

“COVID-19 and external shock: Economic impacts and policy options in Peru.” UNDP. April 2020.

“Domestic Workers: Frontline care workers face COVID-19 challenges.” Women in Informal Employment: Globalizing and Organizing.” https://www.wiego.org/domestic-workers-frontline-care-workers-face-covid-19- challenges

“Effects of COVID-19 on agribusiness in Peru.” Agroberichten Buitenland. May 8, 2020. https:// www.agroberichtenbuitenland.nl/actueel/nieuws/2020/05/08/effects-of-covid19-on-agribusiness-in-peru

“MSME Day 2020: the COVID-19 pandemic and its impact on small business.” International Labor Organization. June 26, 2020. https://www.ilo.org/empent/whatsnew/WCMS_749275/lang--en/index.html

“National Policy Responses.” International Monetary Fund. July 15, 2020. https://www.imf.org/en/Topics/imf-and- covid19/Policy-Responses-to-COVID-19

“Peru: New IFAD_funded project to help family farmers to increase productivity and recover from COVID-19.” International Fund for Agricultural Development. July 2, 2020. https://www.ifad.org/en/web/latest/news-detail/asset/ 41989752

“Peruvian farmers do not stop.” Food and Agriculture Organization of the United Nations.” April 28, 2020. http:// www.fao.org/fao-stories/article/en/c/1272415/

“Rapid responses to COVID-19 under high informality? The case of Peru.” International Labor Organization. May 25, 2020. https://www.ilo.org/wcmsp5/groups/public/---ed_emp/documents/publication/wcms_746116.pdf

“Support to the National Response and Recovery to Contain the Impact of COVID-19.” UNDP Peru. 2020.

“WFP Peru: Country Brief.” World Food Programme. May 2020. https://reliefweb.int/sites/reliefweb.int/files/ resources/WFP-0000117654.pdf

“What is the outlook for Peru’s food exports following COVID-19?” Oxford Busineses Group. May 7, 2020. https:// oxfordbusinessgroup.com/news/what-outlook-peru-s-food-exports-following-covid-19

Dan Collyns. “Peru’s lockdown disrupts work for domestic workers.” CGTN. June 17, 2020. https://newsus.cgtn.com/ news/2020-06-17/Peru-s-lockdown-disrupts-work-for-domestic-workers-RnKmOCIFuo/index.html

John Letzing. “The plight of Peru illustrates the danger of COVID-19 to developing countries.” World Economic Forum. June 17, 2020. https://www.weforum.org/agenda/2020/06/the-plight-of-peru-illustrates-the-danger-of- covid-19-to-developing-countries/

Maria del Carmen Sacasa. “Peru embarks on a comprehensive approach to COVID-19.” UNDP. April 1, 2020. https:// www.undp.org/content/undp/en/home/blog/2020/peru-embarks-on-a-comprehensive-approach-to-covid-19.html

Matias Busso, Juanita Camacho, Julian Messina, Guadalupe Montenegro. “The challenge of protecting informal households during the COVID-19 pandemic: evidence from Latin America.” Inter-American Development Bank. June 2020. https://publications.iadb.org/publications/english/document/The-Challenge-of-Protecting-Informal-Households- during-the-COVID-19-Pandemic-Evidence-from-Latin-America.pdf

SOCIOECONOMIC IMPACTS OF COVID-19 37 Suriname

uriname is a commodity-based economy, and a substantial part of its GDP relies on exports Sof oil, gold, and aluminum. In 2015, Suriname experienced an economic shock when the price of these three commodities declined simultaneously. Before the COVID-19 pandemic, Suriname was still recovering from this triple commodity shock. Thus, its economy was already in a vulnerable position.

According to CESO’s Country Representative in Suriname, those most affected by the economic impacts of COVID-19 include day laborers such as private bus drivers in the public transport sector. As transport is impacted so too are those who rely on public transport to access work – domestic workers, retail workers, and construction workers. Because many markets have closed, farmers and producers have resorted to selling their produce on the streets or through a delivery/ take-out service and their income has been negatively affected.

According to the Inter-American Development Bank (IADB), the main channel through which the pandemic will shock Suriname’s economy will again be through external oil and gold prices. Additionally, the IADB reports that the domestic economy will also be negatively impacted as a result of social distancing and travel restrictions. The most impacted industries will be those that rely on face-to-face interaction such as entertainment, restaurants, transportation, hotels, and home care. These are primarily service industries, where women are more represented than men. Within these service industries, the IADB reports that 17.6% of employees are classified as poor, while 19% are classified as vulnerable to poverty. Additionally, UN Women reports that job seekers are primarily women, who have less representation in the labor force as a whole. The position of women in Suriname’s economy as unemployed job seekers and workers in service industries, the most affected by COVID-19, put them at a higher risk of losing their source of income and falling into poverty. As well as women, COVID-19 has increased the vulnerability of indigenous populations by further isolating them from the city and preventing them from selling or buying goods. Additionally, the closure of schools has a greater negative impact on indigenous children because their villages often have a poor internet connection and limited access to computers or televisions. These vulnerable groups may be further impacted if the prices of food increase as a result of either domestic inflation or an international price increase.

SOCIOECONOMIC IMPACTS OF COVID-19 38 Tourism & Hospitality

According to the IADB, tourism is not a large portion of the economy, representing a small share of employment and GDP but the impact on households that rely on the tourism and travel sectors for their livelihoods will be significant. The Suriname Tourism Board, citing a ‘major economic decline,’ reports that many tourism enterprises in Suriname are struggling, and most have either closed their doors or reduced operations. The sectors that are most likely to be affected by the COVID-19 pandemic are reliant on the tourism sector to some degree. For example, hotels and restaurants attribute 41% of responsibletravel.com t h e i r s a l e s t o t o u r i s t s , transportation attributes 13%, retail attributes 12%, and construction attributes 24%. Thus, the large impact on the tourism sector will reverberate through these linkages and impact the operations of over 60% of Suriname’s firms. As firms operations are reduced, layoffs may be required, putting numerous people at risk of losing their source of income and thus their purchasing power. Without employment, the percentage of people living in or near poverty may rise.

One of CESO’s partners in Suriname, a tour operator, reported to CESO’s Country Representative that women make up approximately 90% of the service providers in his value chain. Thus, the prevalence of women in the tourism and hospitality sector make them particularly vulnerable to income loss as a result of COVID-19. Another CESO partner in the sector is seeking work elsewhere due to the lack of opportunity currently in tourism.

National Response

The government has responded to the socio-economic impacts of COVID-19 on the economy with a number of policies and measures. Two funds were introduced by the Minister of Finance: the first, of US$53.6 million, to support unemployment and pensions and the second, US$40.2 million, to support local production. Additionally, the government established a COVID-19 National Management Team, which includes members of the National Bureau of Security, the National Coordination Unit for Emergency, the Ministry of Health, and the Ministry of Trade, Industry and

SOCIOECONOMIC IMPACTS OF COVID-19 39 Tourism. According to the IMF, the central bank has allowed commercial banks to provide loans at below market interest rates as well as extend payment deferrals by 3-6 months to those impacted by the pandemic. Firms affected by the pandemic can also seek assistance from the Suriname Business Association’s COVID-19 support fund.

International Response

The international response for the impact of COVID-19 in Suriname comes from the UNDP, and will be financed with UNDP funds. UNDP’s response is under the UN Country Team Strategic Preparedness and Response Plan for COVID-19, and supports Suriname’s national response with three pillars: strengthening health systems; inclusive and multi-sectoral crisis management; and socio-economic impact and recovery. This third pillar will focus initially on providing a micro level rapid assessment on socio-economic impact and recovery, particularly the impacts on health, social structures, livelihoods, and community resilience.

In Suriname, some NGOs are helping to support the vulnerable populations through COVID-19. In collaboration with some of its partners (Amazon Conservation Rangers, indigenous organizations, and local authorities), the Amazon Conservation Team (ACT) is supporting Suriname’s indigenous communities of the rainforest with relief packages, food and hygiene supplies, financial support, face masks, contactless thermometers, transportation fuel and flight costs, and satellite phones. These measures help various communities learn about the mitigation and treatment of COVID-19, stay in touch with family and relations outside the communities, and meet their essential needs. Additionally, the ACT is working with UNICEF to conduct a Knowledge, Attitude, and Practices survey to understand the impact of COVID-19 on women and children in rural communities.

paho.org

SOCIOECONOMIC IMPACTS OF COVID-19 40 References

Jeetandra Khadan. “COVID-19 Socioeconomic Implications on Suriname.” Inter-American Development Bank. May 2020. https://publications.iadb.org/publications/english/document/COVID-19-Socioeconomic-Implications-on- Suriname.pdf

“COVID-19 Response June, 2020.” The Amazon Conservation Team. July 29, 2020. https://www.amazonteam.org/ covid-19-response-june-2020/

“COVID-19.” Suriname Tourism Board. https://www.surinametourism.sr/health-requirements/

“Policy Responses to COVID-19.” International Montary Fund. July 1, 2020. https://www.imf.org/en/Topics/imf-and- covid19/Policy-Responses-to-COVID-19#S

“Situation Analysis of Women and Men in Suriname: Economy.” UN Women, Suriname Ministry of Home Affairs. 2018. https://www2.unwomen.org/-/media/field%20office%20caribbean/attachments/publications/2018/ factsheet%20ungei%20economy%20final%20english.pdf?la=en&vs=3949

“Support to the National Response and Recovery to Contain the Impact of COVID-19.” UNDP Suriname. June 22, 2020.

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