Connect with us

News

World Bank Predicts Sharpest Decline of Remittances in Recent History

Avatar photo

Published

on

Global remittances are projected to decline sharply by about 20 percent in 2020 due to the economic crisis induced by the COVID-19 pandemic and shutdown. The projected fall, which would be the sharpest decline in recent history, is largely due to a fall in the wages and employment of migrant workers, who tend to be more vulnerable to loss of employment and wages during an economic crisis in a host country. Remittances to low and middle-income countries (LMICs) are projected to fall by 19.7 percent to $445 billion, representing a loss of a crucial financing lifeline for many vulnerable households.

Studies show that remittances alleviate poverty in lower- and middle-income countries, improve nutritional outcomes, are associated with higher spending on education, and reduce child labor in disadvantaged households. A fall in remittances affect families’ ability to spend on these areas as more of their finances will be directed to solve food shortages and immediate livelihoods needs.

Remittances are a vital source of income for developing countries. The ongoing economic recession caused by COVID-19 is taking a severe toll on the ability to send money home and makes it all the more vital that we shorten the time to recovery for advanced economies,” said World Bank Group President David Malpass. “Remittances help families afford food, healthcare, and basic needs. As the World Bank Group implements fast, broad action to support countries, we are working to keep remittance channels open and safeguard the poorest communities’ access to these most basic needs.”

The World Bank is assisting member states in monitoring the flow of remittances through various channels, the costs and convenience of sending money, and regulations to protect financial integrity that affect remittance flows. It is working with the G20 countries and the global community to reduce remittance costs and improve financial inclusion for the poor.

Remittance flows are expected to fall across all World Bank Group regions, most notably in Europe and Central Asia (27.5 percent), followed by Sub-Saharan Africa (23.1 percent), South Asia (22.1 percent), the Middle East and North Africa (19.6 percent), Latin America and the Caribbean (19.3 percent), and East Asia and the Pacific (13 percent).

The large decline in remittances flows in 2020 comes after remittances to LMICs reached a record $554 billion in 2019. Even with the decline, remittance flows are expected to become even more important as a source of external financing for LMICs as the fall in foreign direct investment is expected to be larger (more than 35 percent). In 2019, remittance flows to LMICs became larger than FDI, an important milestone for monitoring resource flows to developing countries.

In 2021, the World Bank estimates that remittances to LMICs will recover and rise by 5.6 percent to $470 billion. The outlook for remittance remains as uncertain as the impact of COVID-19 on the outlook for global growth and on the measures to restrain the spread of the disease. In the past, remittances have been counter-cyclical, where workers send more money home in times of crisis and hardship back home. This time, however, the pandemic has affected all countries, creating additional uncertainties.

Effective social protection systems are crucial to safeguarding the poor and vulnerable during this crisis in both developing countries as well as advanced countries. In host countries, social protection interventions should also support migrant populations,” said Michal Rutkowski, Global Director of the Social Protection and Jobs Global Practice at the World Bank.

The global average cost of sending $200 remains high at 6.8 percent in the first quarter of 2020, only slightly below the previous year. Sub-Saharan Africa continued to have the highest average cost, at about 9 percent, yet intra-regional migrants in Sub-Saharan Africa comprise over two-thirds of all international migration from the region.

Quick actions that make it easier to send and receive remittances can provide much-needed support to the lives of migrants and their families. These include treating remittance services as essential and making them more accessible to migrants,” said Dilip Ratha, lead author of the Brief and head of KNOMAD.


Regional Remittance Trends

Remittance flows to the East Asia and Pacific region grew by 2.6 percent to $147 billion in 2019, about 4.3 percentage points lower than the growth rate in 2018. In 2020, remittance flows are expected to decline by 13 percent. The slowdown is expected to be driven by declining inflows from the United States, the largest source of remittances to the region. Several remittance-dependent countries such as those in the Pacific Islands could see households at risk as remittance incomes decline over this period. A recovery of 7.5 percent growth for the region is anticipated in 2021. Remittance costs: The average cost of sending $200 to the East Asia and Pacific region dropped to 7.13 percent in the first quarter of 2020, compared to the same quarter in 2019. The five lowest cost corridors in the region averaged 2.6 percent while the five highest cost corridors averaged 15.4 percent as of 2019 Q4.

Remittances to countries in Europe and Central Asia remained strong in 2019, growing by about 6 percent to $65 billion in 2019. Ukraine remained the largest recipient of remittances in the region, receiving a record high of nearly $16 billion in 2019. Smaller remittance-dependent economies in the region, such as Kyrgyz Republic, Tajikistan, and Uzbekistan, particularly benefited from rebound of economic activity in Russia. In 2020, remittances are estimated to fall by about 28 percent due to the combined effect of the global coronavirus pandemic and lower oil prices. Remittance costs: The average cost of sending $200 to the ECA region declined modestly to 6.48 percent in the first quarter of 2020 from 6.67 percent a year earlier. The differences in costs across corridors in the region are substantial; the highest costs for sending remittances were from Turkey to Bulgaria, while the lowest costs for sending remittances were from Russia to Azerbaijan.

Remittances flows into Latin America and the Caribbean grew 7.4 percent to $96 billion in 2019. Growth in inflows was uneven across countries in the region. Brazil, Guatemala and Honduras saw a rise in remittances of more than 12 percent in 2019. Colombia, Ecuador, Nicaragua and Panama had an increase of more than 6 percent, while remittances to Bolivia and Paraguay declined by 3.8 percent and 2.2 percent, respectively. In 2020, remittance flows to the region is estimated to fall by 19.3 percent. Remittance costs: The average cost of sending $200 to the region was 5.97 percent in the first quarter of 2020. Amid the COVID-19 crisis, the costs of transferring remittances to the region could increase due to operational challenges being faced by remittance service providers (closures of agents and offices, access to cash, foreign exchange, security) and compliance with AML/CFT regulations.

Remittances to the Middle East and North Africa region are projected to fall by 19.6 percent to $47 billion in 2020, following the 2.6 percent growth seen in 2019. The anticipated decline is attributable to the global slowdown as well as the impact of lower oil prices in GCC countries. Remittances from the euro area would also be impacted by the area’s pre-COVID-19 economic slowdown and the depreciation of the euro against the U.S. dollar. In 2021, remittances to the region is expected to recover, albeit at a slow pace of around 1.6 percent due to projected moderate growth in the euro area and weak GCC outflows. Remittance costs: The cost of sending $200 to the region was 7 percent, largely unchanged from the previous year. Costs vary greatly across corridors. The cost of sending money from high-income OECD countries to Lebanon continues to be in the double digits. Sending money from GCC countries to Egypt and Jordan costs between 3 percent to 5 percent in some corridors. The Saudi Arabia to Syria corridor has experienced a dramatic fall in costs as the civil war in Syria has receded.

Remittances to South Asia are projected to decline by 22 percent to $109 billion in 2020, following the growth of 6.1 percent in 2019. The deceleration in remittances to the South Asian region in 2020 is driven by the global economic slowdown due to the coronavirus outbreak as well as oil price declines. The economic slowdown is likely to directly affect remittance outflows from the United States, the United Kingdom, and EU countries to South Asia. Falling oil prices will affect remittance outflows from GCC countries and Malaysia. Remittance costs: South Asia had the lowest average remittance costs of any region, at 4.95 percent. Some of the lowest-cost corridors had costs below the 3 percent SDG target. This is probably due to high volumes, competitive markets, and deployment of technology. But costs are well over 10 percent in the highest-cost corridors due to low volumes, little competition, and regulatory concerns. Banking regulations related to AML/CFT raise the risk profile of remittance service providers and thereby increase costs for some receiving countries such as Afghanistan and sending countries such as Pakistan.

Remittances to Sub-Saharan Africa registered a small decline of 0.5 percent to $48 billion in 2019. Due to the COVID-19 crisis, remittance flows to the region are expected to decline by 23.1 percent to reach $37 billion in 2020, while a recovery of 4 percent is expected in 2021. The anticipated decline can be attributed to a combination of factors driven by the coronavirus outbreak in key destinations where African migrants reside including in the EU area, the United States, the Middle East, and China. These large economies host a large share of Sub-Saharan African migrants and combined, are a source of close to a quarter of total remittances sent to the region. In addition to the pandemic’s impact, many countries in the Eastern Africa region are experiencing a severe outbreak of desert locusts attacking crops and threatening the food supply for people in the region. Remittance costs: Sending $200 remittances to the region cost 8.9 percent on average in the first quarter of 2020, a modest decrease compared with the average cost of 9.25 percent a year before. The most expensive corridors are observed mainly in the Southern African region, with costs as high as 20 percent. At the other end of the spectrum, the less expensive corridors had average costs of less than 3.6 percent.

Continue Reading
Comments

Health & Wellness

Breast cancer: an aggressive variant triggers a hunt for cures

Avatar photo

Published

on

By Vittoria D’alessio

Breast cancer is the most common type in women and, in Europe alone, causes almost 92 000 deaths a year. Though this number is undoubtedly high, survival rates are improving. Advances in prevention, detection and treatment mean a patient now has a 90% chance of survival.

But one particularly aggressive variant is bucking the trend: triple negative breast cancer (TNBC), so named because it lacks three kinds of cell proteins. Tumours in this category account for around 15% of breast-cancer cases and the outlook is far worse than for other types.

Triple trouble

Tumours grow faster, spread more often before being discovered and are likelier to come back after treatment. And when TNBC does recur in other organs, an early death is likely, with survival rates as low as 11%.

Currently, no specific treatment exists for TNBC. The response usually involves surgical removal of the tumour followed by a cocktail of chemotherapy drugs that are known to work against other types of cancer. Often, however, the results are patchy and temporary.

‘After some time, the body often creates defences against this cocktail and it no longer works,’ said Dr Andreia Valente, co-coordinator of an EU-funded project to find cures for TNBC. ‘When this happens, the tumour usually becomes multi-drug resistant, meaning it doesn’t respond to any other type of chemotherapy treatment, and the cancer then becomes very aggressive.’

Dr Valente, who works at the University of Lisbon in Portugal, and her research partner Dr Helena Garcia coordinate CanceRusolution, a one-year Women TechEU initiative running until end-May 2023.

Rare metal

Efforts are focused on ruthenium, a rare, silvery-white metal known to be well-tolerated by the human body. From early experiments, it appears that the ruthenium-based drug the project team has developed both halts the growth of TNBC cells and stops them from spreading.

A second round of trials, this one on animals, is due to start soon. Alongside these, the researchers will be analysing the drug’s safety profile to ensure it is toxic to cancer cells but harmless to the rest of the body.

Chemotherapy is notorious for its brutal side-effects – ranging from nausea and lack of appetite to exhaustion and hair loss – because drugs that attack the fast-growing cells of a tumour typically kill healthy cells too.

Early results from CanceRusolution suggest a drug based on ruthenium would cause fewer side-effects in patients because healthy cells seem to be unaffected.

‘So far, from a toxicity point of view, the drug’s profile looks good,’ said Dr Garcia. ‘Our studies show that 24 hours after administering the drug, there’s a high concentration of the compound in the tumour, but in the surrounding blood and urine it’s almost gone. This means the secondary effects of our drug should be low.’

Cell traits

A healthy breast cell is packed with receptors – proteins expressed on the surface of the cell. They allow it to respond to hormones (for instance, by enlarging during pregnancy) and other vital molecules involved in controlling how the cell grows, divides and repairs itself.

Most cancer cells also possess receptors. To make an accurate diagnosis, a clinician will analyse a sample of diseased breast tissue to discover which receptors – known as biomarkers in this context – are being expressed.

Three biomarkers are commonly found in breast tumours and drugs have been developed to target all three. But TNBC is an outlier. It possesses none of these biomarkers and, as a result, provides no obvious pathway to sabotage tumour growth.

Trojan-horse approach

The drug developed by the team in Portugal gets around this problem by delivering the drug as a nanoparticle that enters the tumour through defects in the tumour’s blood-supply system. Once inside, it cracks open, Trojan-horse style, to release the active ingredient. This targets a completely different component of TNBC cells – the cytoskeleton: the complex network of interlinking protein filaments that fills the cell’s interior and acts as scaffolding.

‘The drug then destroys the foundations of the cell,’ said Dr Garcia. ‘Without a functioning cytoskeleton, the cell has no way of surviving. It splatters.’

With new funding, the researchers believe their drug could be ready for evaluation in humans within two years.

Diverse group

Thinking of TNBC as a single type of breast cancer is an oversimplification. It is in fact a highly diverse group of cancers.

Researchers, however, lack a classification of subtypes. Having one would allow them to zero in on new biomarkers that, it is hoped, would pave the way for new tailored treatments.

Classifying patients according to the precise character of their tumour, and seeking new targets for TNBC treatments, are pillars of another EU-funded project – P70-IMMUNEBREAST.

After studying 350 cancerous tissue samples, the project’s researchers have devised a classification system based on how much ‘kinase’ – an enzyme and another cancer biomarker – is expressed by a tumour.

Earlier research showed that one particular kind of kinase, P70S6K, is found in high levels in TNBC tumours.

‘What we’re interested in is the link between this kinase and the body’s immune response,’ said researcher Dr Rebeca Jimeno. ‘Tumours develop in our bodies and – when all goes well – our immune system recognises them and destroys them.’

The big question is why this system sometimes fails.

Immunity angle

Dr Jimeno, who is based at the Spanish National Cancer Research Centre, has found that when high levels of P70S6K kinase are expressed, fewer B cells are found in a tumour.

B cells recognise, infiltrate and finally destroy cancer cells. In other words, P70S6K allows cancer to hide from the immune system and grow undisturbed.

One of the next research steps is to find an appropriate inhibitor for this kinase.

‘Drugs are being tested, but I suspect it will be some years before one is found that’s well-tolerated by the body,’ said Dr Jimeno.

She is hopeful that a cure will eventually be found.

‘We’re trying so hard to find a solution for this unmet need, and I’m confident that one piece of research at a time, we’ll get there,’ said Dr Jimeno.

Research in this article was funded via the EU’s Marie Skłodowska-Curie Actions (MSCA). This material was originally published in Horizon, the EU Research and Innovation Magazine.   

Continue Reading

World News

Scholz and Macron threaten trade retaliation against Biden

Avatar photo

Published

on

Image source: International Affairs

After publicly falling out, Olaf Scholz and Emmanuel Macron have found something they agree on: mounting alarm over unfair competition from the U.S. and the potential need for Europe to hit back, – writes POLITICO.

The German chancellor and the French president discussed their joint concerns during nearly three-and-a-half hours of talks over a lunch of fish, wine and Champagne in Paris.

They agreed that recent American state subsidy plans represent market-distorting measures that aim to convince companies to shift their production to the U.S., according to people familiar with their discussions. And that is a problem they want the European Union to address.

Both leaders agreed that the EU cannot remain idle if Washington pushes ahead with its Inflation Reduction Act, which offers tax cuts and energy benefits for companies investing on U.S. soil, in its current form. Specifically, the recently signed U.S. legislation encourages consumers to “Buy American” when it comes to choosing an electric vehicle — a move particularly galling for major car industries in the likes of France and Germany.

The message from the Paris lunch is: ‘If the U.S. doesn’t scale back, then the EU will have to strike back. That move would risk plunging transatlantic relations into a new trade war.’

Crucially, Berlin — which has traditionally been more reluctant when it comes to confronting the U.S. in trade disputes — is indeed backing the French push. Scholz agrees that the EU will need to roll out countermeasures similar to the U.S. scheme if Washington refuses to address key concerns voiced by Berlin and Paris, according to people familiar with the chancellor’s thinking.

Before bringing out the big guns, though, Scholz and Macron want to try to reach a negotiated solution with Washington. This should be done via a new “EU-U.S. Taskforce on the Inflation Reduction Act” that was established during a meeting between European Commission President Ursula von der Leyen and U.S. Deputy National Security Adviser Mike Pyle.

International Affairs

Continue Reading

Tech News

Futuristic fields: Europe’s farm industry on cusp of robot revolution

Avatar photo

Published

on

By Sofia Strodt

In the Dutch province of Zeeland, a robot moves swiftly through a field of crops including sunflowers, shallots and onions. The machine weeds autonomously – and tirelessly – day in, day out.

“Farmdroid” has made life a lot easier for Mark Buijze, who runs a biological farm with 50 cows and 15 hectares of land. Buijze is one of the very few owners of robots in European agriculture.

Robots to the rescue

His electronic field worker uses GPS and is multifunctional, switching between weeding and seeding. With the push of a button, all Buijze has to do is enter coordinates and Farmdroid takes it from there.

‘With the robot, the weeding can be finished within one to two days – a task that would normally take weeks and roughly four to five workers if done by hand,’ he said. ‘By using GPS, the machine can identify the exact location of where it has to go in the field.’

About 12 000 years ago, the end of foraging and start of agriculture heralded big improvements in people’s quality of life. Few sectors have a history as rich as that of farming, which has evolved over the centuries in step with technological advancements.

In the current era, however, agriculture has been slower than other industries to follow one tech trend: artificial intelligence (AI). While already commonly used in forms ranging from automated chatbots and face recognition to car braking and warehouse controls, AI for agriculture is still in the early stages of development.

Now, advances in research are spurring farmers to embrace robots by showing how they can do everything from meeting field-hand needs to detecting crop diseases early.

Lean and green

For French agronomist Bertrand Pinel, farming in Europe will require far greater use of robots to be productive, competitive and green – three top EU goals for a sector whose output is worth around €190 billion a year.

One reason for using robots is the need to forgo the use of herbicides by eliminating weeds the old-fashioned way: mechanical weeding, a task that is not just mundane but also arduous and time consuming. Another is the frequent shortage of workers to prune grapevines.

‘In both cases, robots would help,’ said Pinel, who is research and development project manager at France-based Terrena Innovation. ‘That is our idea of the future for European agriculture.’

Pinel is part of the EU-funded ROBS4CROPS project. With some 50 experts and 16 institutional partners involved, it is pioneering a robot technology on participating farms in the Netherlands, Greece, Spain and France.

‘This initiative is quite innovative,’ said Frits van Evert, coordinator of the project. ‘It has not been done before.’

In the weeds

AI in agriculture looks promising for tasks that need to be repeated throughout the year such as weeding, according to van Evert, a senior researcher in precision agriculture at Wageningen University in the Netherlands.

‘If you grow a crop like potatoes, typically you plant the crop once per year in the spring and you harvest in the fall, but the weeding has to be done somewhere between six and 10 times per year,’ he said.

Plus, there is the question of speed. Often machines work faster than any human being can.

Francisco Javier Nieto De Santos, coordinator of the EU-funded FLEXIGROBOTS project, is particularly impressed by a model robot that takes soil samples. When done by hand, this practice requires special care to avoid contamination, delivery to a laboratory and days of analysis.

‘With this robot everything is done in the field,’ De Santos said. ‘It can take several samples per hour, providing results within a matter of minutes.’

Eventually, he said, the benefits of such technologies will extend beyond the farm industry to reach the general public by increasing the overall supply of food.

Unloved labour

Meanwhile, agricultural robots may be in demand not because they can work faster than any person but simply because no people are available for the job.

Even before inflation rates and fertiliser prices began to surge in 2021 amid an energy squeeze made worse by Russia’s invasion of Ukraine this year, farmers across Europe were struggling on another front: finding enough field hands including seasonal workers.

‘Labour is one of the biggest obstacles in agriculture,’ said van Evert. ‘It’s costly and hard to get these days because fewer and fewer people are willing to work in agriculture. We think that robots, such as self-driving tractors, can take away this obstacle.’

The idea behind ROBS4CROPS is to create a robotic system where existing agricultural machinery is upgraded so it can work in tandem with farm robots.

For the system to work, raw data such as images or videos must first be labelled by researchers in ways than can later be read by the AI.

Driverless tractors

The system then uses these large amounts of information to make “smart” decisions as well as predictions – think about the autocorrect feature on laptop computers and mobile phones, for example.

A farming controller comparable to the “brain” of the whole operation decides what needs to happen next or how much work remains to be done and where – based on information from maps or instructions provided by the farmer.

The machinery – self-driving tractors and smart implements like weeders equipped with sensors and cameras – gathers and stores more information as it works, becoming “smarter”.

Crop protection

FLEXIGROBOTS, based in Spain, aims to help farmers use existing robots for multiple tasks including disease detection.

Take drones, for example. Because they can spot a diseased plant from the air, drones can help farmers detect sick crops early and prevent a wider infestation.

‘If you can’t detect diseases in an early stage, you may lose the produce of an entire field, the production of an entire year,’ said De Santos. ‘The only option is to remove the infected plant.’

For example, there is no treatment for the fungus known as mildew, so identifying and removing diseased plants early on is crucial.

Pooling information is key to making the whole system smarter, De Santos said. Sharing data gathered by drones with robots or feeding the information into models expands the “intelligence” of the machines.

Although agronomist Pinel doesn’t believe that agriculture will ever be solely reliant on robotics, he’s certain about their revolutionary impact.

‘In the future, we hope that the farmers can just put a couple of small robots in the field and let them work all day,’ he said.

Research in this article was funded by the EU. This material was originally published in Horizon, the EU Research and Innovation Magazine.   

Continue Reading

Publications

Latest

Reports54 mins ago

Azerbaijan Can Accelerate Its Green Economic Transformation

A report launch and policy dialogue organized by the World Bank jointly with the Republic of Azerbaijan National Coordination Council...

Reports3 hours ago

Digitalization Advances Financial Inclusion for Women and Micro Business Owners but More Is Needed

The World Economic Forum launched today the ASEAN Digital Generation Report 2022, the sixth edition of the report since 2017....

Health & Wellness4 hours ago

Breast cancer: an aggressive variant triggers a hunt for cures

By Vittoria D’alessio Breast cancer is the most common type in women and, in Europe alone, causes almost 92 000 deaths a...

Americas5 hours ago

What democrats and republicans expect from U.S. foreign policy

Partisanship colors Democrats’ and Republicans’ foreign policy priorities in ways that will matter substantially for companies, global supply chains and...

Americas7 hours ago

Gun violence: human rights situation in the United States is very dismal

The United States is known as the world’s largest democratic or full democracy country. From this introduction, the question may...

Russia9 hours ago

Russia-Ukraine’s Winter’s War

More than 10 months have passed since Russia’s invasion of Ukraine on February 24th, and the conflict is still ongoing....

South Asia11 hours ago

It’s all about India’s odd but subtle tit-for-tat perception

India has been known as an actor in world politics that had always chosen to refrain from any comment or...

Trending