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Contact: Eva Grant Center for Global Development egrant@cgdev.org +1.202.416.4027 En español In Peru, displaced Venezuelans typically earn 35 percent less than their Peruvians hosts.   WASHINGTON—The Center for Global Development and Refugees International launched two reports today finding that the economic effects of the COVID-19 pandemic have disproportionately impacted displaced Venezuelans in comparison to their Peruvian hosts. Additionally, the research identifies major barriers to access to work for displaced Venezuelans that, if removed, would allow Venezuelans to positively contribute to Peru’s economy and promote development. The new research finds that Venezuelans earn 35 percent less on average than their Peruvian hosts. Many Venezuelans in Peru are forced to work in informal, low-paying jobs as they confront legal and practical barriers to accessing work, which leaves them more vulnerable to economic shocks, including the pandemic. The study finds that 71 percent of employed Venezuelans in Peru work in sectors highly impacted by the pandemic, compared to 56 percent of employed Peruvians. This trend is worse for Venezuelan women, who are more likely to work in highly impacted sectors.  Meaningful economic inclusion of Venezuelans could lead to a stronger economy for Peru, the research shows. Venezuelans can increase Peru’s GDP because they consume goods and services, pay taxes, start and invest in businesses, provide skills that complement those of Peruvians, and more. In turn, allowing Venezuelans to work in roles that match their qualifications will increase their self-reliance.  Peru is one of the largest destination countries—only second to Colombia—for Venezuelans fleeing horrors at home. However, the COVID-19 crisis has made the situation for Venezuelans in Peru more precarious, and Peru’s recent domestic political upheaval could only make matters worse.  “Peru is facing three crises—the pandemic, economic freefall, and political chaos,” said Martha Guerrero Ble, one of the report’s authors and a program associate at Refugees International. “The economic hardships displaced Venezuelans now face will only worsen without swift action to meaningfully include them in the economy.” The two reports are a product of the Center for Global Development and Refugees International’s “Let Them Work” initiative. Some key takeaways include:  Venezuelans in Peru face legal and practical barriers to their economic inclusion, including difficulties regularizing their status, extra taxes, limits on employment, difficulties verifying credentials, xenophobia, and discrimination, among other issues specific to Venezuelan women, entrepreneurs, and asylum seekers. Prior to the pandemic, Venezuelans were earning 35 percent less than Peruvians on average. The income gaps were starkest for highly educated individuals, with Venezuelans with at least some university education earning 71 percent less than Peruvians.  Venezuelan women earned 23 percent less than Peruvian women and 49 percent less than Peruvian men. 71 percent of employed Venezuelans work in highly impacted sectors, compared to 56 percent of employed Peruvians. Venezuelan women are even more adversely affected, with 78 percent of employed Venezuelan women working in highly impacted sectors, compared with 67 percent of employed Venezuelan men and 67 percent of employed Peruvian women. “As Peru faces a 14 percent contraction in its economy, the data is compelling and shows that including Venezuelans in the economy is mutually beneficial,” said Helen Dempster, assistant director at the Center for Global Development and project manager for “Let Them Work.” “The good news is that there are straightforward policy changes Peru can make to improve the economic crisis both for their citizens and for displaced Venezuelans.” For more information, see: From Displacement to Development: How Peru Can Transform Venezuelan Displacement into Shared Growth by Martha Guerrero Ble, Izza Leghtas, and Jimmy Graham The Effect of COVID-19 on the Economic Inclusion of Venezuelans in Peru by Martha Guerrero Ble and Jimmy Graham ABOUT LET THEM WORK “Let Them Work” is a three-year program of work led by the Center for Global Development (CGD) and Refugees International and funded by the IKEA Foundation and the Western Union Foundation. The initiative aims to expand labor market access for refugees and forced migrants, by identifying their barriers to economic inclusion and providing recommendations to host governments, donors, and the private sector for how to overcome them.  En Perú, los venezolanos desplazados ganan típicamente 35 por ciento menos que la comunidad de acogida peruana. WASHINGTON—El Centro para el Desarrollo Global y Refugees International publicaron dos reportes hoy donde encuentran que los efectos económicos de la pandemia tienen un impacto desproporcionado hacia los venezolanos desplazados en comparación con la comunidad de acogida Peruana. Además, la investigación identifica las principales barreras al acceso al trabajo para los venezolanos desplazados que, de ser removidas, permitirían a los venezolanos contribuir de manera positiva a la economía peruana, promoviendo el desarrollo. La nueva investigación encuentra que los venezolanos ganan 35 por ciento menos en promedio que sus contrapartes peruanas. Muchos de los venezolanos en Perú están siendo forzados a trabajar en empleos informales y mal pagados al enfrentarse con barreras prácticas y legales al acceso laboral, dejándolos más vulnerables a choques económicos, incluida la pandemia. El estudio encuentra que el 71 por ciento de los venezolanos empleados en Perú trabajan en sectores altamente impactados por la pandemia, a comparación de un 56 por ciento de los peruanos empleados. Esta tendencia es aún peor para las mujeres venezolanas que son más propensas a trabajar en sectores altamente impactados. Una inclusión económica significativa de los venezolanos podría llevar a una economía más fuerte para Perú, como muestra la investigación. Los venezolanos pueden incrementar el PIB peruano puesto a que consumen bienes y servicios, pagan impuestos, comienzan e invierten en negocios, proveen de habilidades que complementan a las de los peruanos y más. En respuesta, permitir a los venezolanos trabajar en roles que vayan de acuerdo a sus cualificaciones incrementará su autosuficiencia.  Perú es uno de los principales países destino—solo segundo a Colombia—para los venezolanos huyendo de los horrores en casa. Sin embargo, la crisis del COVID-19 ha hecho que la situación para los venezolanos en Perú sea más precaria y las recientes agitaciones políticas solo pueden empeorar la situación.  “Perú está enfrentando tres crisis—la pandemia, la caída económica y la crisis política'', dijo Martha Guerrero Ble, una de los autores del reporte e investigadora en Refugees International. “Las dificultades económicas que los desplazados venezolanos enfrentan ahora solo empeorarán sin acción inmediata para incluirlos de manera significativa en la economía.” Los dos reportes son producto de la iniciativa “Déjenlos trabajar” del Centro de Desarrollo Global y Refugees International. Algunos de los aportes clave incluyen: Los venezolanos en Peru se enfrentan a barreras practicas y legales a su inclusión economica, incluyendo dificultades para regularizar su estatus, mayores impuestos, limites al empleo, dificultades para verificar credenciales, xenofobia y discrimacion, entre otros problemas especificos para las mujeres, los emprendedores y los solicitantes de asilo venezolanos. Antes de la pandemia, los venezolanos ganaban 35 por ciento menos en promedio que los peruanos. La disparidad de ingresos era mayor para los individuos más educados, con venezolanos con al menos algún grado de educación universitaria ganando 71 por ciento menos que peruanos con cualificaciones similares. Las mujeres venezolanas ganaron 23 por ciento menos que las mujeres peruanas y 49 por ciento menos que los hombres peruanos. 71 por ciento de los venezolanos empleados trabajan en sectores altamente impactados, en contraste con un 56 por ciento de peruanos empleados Las mujeres venezolanas han sido más impactadas negativamente, con un 78 por ciento de mujeres venezolanas empleadas trabajando en sectores altamente impactados, a comparación de un 67 por ciento de hombres venezolanos empleados y un 67 por ciento de mujeres peruanas empleadas. “Mientras Perú se enfrenta a una contracción económica del 14 por ciento, los datos son convincentes mostrando que incluir a los venezolanos en la economía es mutuamente beneficioso”, dijo Helen Dempster, Directora Asistente en el Centro para el Desarrollo Global y administradora del proyecto “Déjenlos Trabajar”. “La buena noticia es que hay cambios claros en política pública que Perú puede hacer para mejorar la crisis económica tanto para sus ciudadanos como para los venezolanos desplazados”. Para más información, visite: Desde el desplazamiento al desarrollo: cómo Perú puede transformar el desplazamiento venezolano en crecimiento compartido por Martha Guerrero Ble, Izza Leghtas y Jimmy Graham. Los Efectos del COVID-19 en la inclusión económica de los venezolanos en Perú por Martha Guerrero Ble y Jimmy Graham* Acerca de la Iniciativa “Déjenlos Trabajar” “Déjenlos Trabajar”, un programa de trabajo de 3 años liderado por el Centro para el Desarrollo Global (CGD) y Refugees International, y financiado por la Fundación IKEA y la Fundación Western Union. La iniciativa busca expandir el acceso al mercado laboral a los refugiados y migrantes forzados, al identificar sus barreras para la inclusión económica y brindarles recomendaciones a los gobiernos anfitriones, donadores y al sector privado en cuanto a cómo superar dichas barreras.  if(document.querySelectorAll){ document.getElementById('lang-button').style.display = 'block'; }; function toggleLang(){ if (document.getElementById('lang-spanish').style.display == 'none'){ document.getElementById('lang-english').style.display = 'none'; document.getElementById('lang-spanish').style.display = 'block'; document.getElementById('lang-button').innerHTML = 'Read in English'; document.querySelectorAll('h1.title')[0].innerText = 'El choque económico del COVID-19 afecta desproporcionadamente a los Venezolanos desplazados en el Perú según nueva investigación'; } else { document.getElementById('lang-english').style.display = 'block'; document.getElementById('lang-spanish').style.display = 'none'; document.getElementById('lang-button').innerHTML = 'En español'; document.querySelectorAll('h1.title')[0].innerText = 'Economic Shocks of COVID-19 Disproportionately Affects Displaced Venezuelans in Peru, New Research Finds'; }; };

Contact: Eva Grant Center for Global Development egrant@cgdev.org +1.202.416.4027 Venezuelans are 36% more likely to be financially impacted by COVID-19 than Colombians WASHINGTON—The Center for Global Development and Refugees International launched a report today finding that COVID-19’s economic effects hit Venezuelan refugees in Colombia particularly hard. Venezuelans living in Colombia are more likely than locals to work in impacted sectors, and very few work in sectors relatively immune to COVID-19’s economic shocks, researchers found. The paper’s authors, Jimmy Graham and Martha Guerrero Ble, compared the Colombian government’s nationally representative labor market data from August to October 2019 and the International Labor Organization’s analysis of global sectors most highly impacted by COVID-19 in order to calculate how Venezuelan refugees in Colombia are being financially affected by the pandemic. COVID-19’s wide impact has hurt the labor prospects of both Colombians and Venezuelans in Colombia alike, but the impact is harder felt among Venezuelans, and Venezuelan women in particular. Among other findings, the authors discovered that: 64 percent of employed Venezuelans work in highly impacted sectors, compared to 47 percent of employed Colombians. Only 3 percent of employed Venezuelans work in the least impacted sectors, compared to 13 percent of employed Colombians. Venezuelan women are even more adversely affected, with 78 percent of employed Venezuelan women working in highly impacted sectors, compared with 57 percent of employed Venezuelan men and 59 percent of employed Colombian women. 46 percent of employed Venezuelans work in the informal economy, compared to 35 percent of employed Colombians. “These findings underscore the fact that Venezuelans face numerous barriers to accessing the full Colombian labor market - something which has had adverse consequences during COVID-19," said Helen Dempster, the Assistant Director and Senior Associate for Policy Outreach for Migration, Displacement, and Humanitarian Policy at the Center for Global Development. "Removing these barriers, as we show in a new case study released today, would contribute nearly $1 billion to the Colombian economy every year." “COVID-19 is creating a widespread loss of livelihoods for Venezuelans and Colombians alike,” said Cindy Huang, Vice President for Strategic Outreach at Refugees International and Non-Resident Fellow at the Center for Global Development. “Greater economic inclusion for Venezuelans can help prevent loss of income, evictions, food insecurity, and poverty, and can support Colombia’s economic recovery long-term.” ##

Contact: Neil Vowles N.G.Vowles@sussex.ac.uk Jeremy Gaines jgaines@cgdev.org Exports from the world’s poorest nations to the UK will be lower as a result of Brexit, a joint analysis of the UK’s new tariff plans by the UK Trade Policy Observatory (UKTPO), the Overseas Development Institute (ODI) and the Center for Global Development (CGD) reveals. While the UK has announced plans to reduce tariffs below EU levels for wealthier nations once the transition period ends this year, trade experts are warning that many tariffs for developing countries are set to be retained at current levels, leaving the poorest countries at an economic disadvantage. The analysis also warns that traders from lower income countries would also be hit by additional costs of customs checks when exporting to the UK via the EU; and that existing trade deals with Cameroon, Côte D’Ivoire, Ghana and Kenya, which would give them duty-free access to the UK, are yet to be rolled-over. The report’s authors say the proposed tariff changes do nothing to advance the Government’s long-standing pledge to use Brexit to improve market access for the world’s poorest countries. Mattia Di Ubaldo, Research Fellow in the University of Sussex Business School and a fellow of the UK Trade Policy Observatory said “At the moment the poorest countries are exempted from tariffs on exports to the UK, which gives them a competitive advantage relative to other countries. Lowering the tariffs which these other countries face reduces this advantage and so reduces the poorest nations’ exports.” Lower middle income countries will also be squeezed on around the two-thirds of their exports which receive similar preferences– but will benefit from the new lower UK tariff rates on the exports where they currently pay the full tariff. Overall, the research found that while higher income and some middle-income countries will see higher exports to the UK as a result of the changes, most lower income countries will have lower exports. Specifically, the world’s 41 poorest countries would see the value of their exports to the UK fall by more $3 million a year while 33 lower income countries that have Economic Partnership Agreements (EPAs) with the EU, and with which the UK is trying to sign agreements, would be hit by increased competition and stand to lose around $19 million in exports (0.32%), the researchers found. By comparison, the higher-income and middle-income countries facing the lowered UK Global Tariff will see their imports increase by some $1.9 billion (1.52%). L. Alan Winters, Professor of Economics and founding director of the UK Trade Policy Observatory, said “The UK government has tailored its new tariff to try to avoid harming lower income countries’ exports, but it cannot achieve this perfectly if it wants to lower tariffs in general. Countries that pay no tariffs at present have nothing to gain from tariff reforms, so to help them you need to look at other dimensions.” Ian Mitchell, Senior Policy Fellow at the Center for Global Development, said “Trade is crucial to development, as China and South Korea have shown to the benefit of UK consumers. Despite the UK Government’s three-year-old pledge to improve trade access for the poorest countries post-Brexit, those countries will instead face additional challenges from January. The UK is not keeping its promise” The researchers recommend cutting the tariffs lower middle-income countries pay on goods which are not supplied at all by the poorest countries. The analysis identifies scores of such tariff lines in excess of 10% on products such as tuna, pineapple and beans which could be reduced without harming UK producers or the UK’s negotiating position in future trade deals. The study also calls for longer-term reforms that simplify trade with the world’s poorest nations, levelling the playing field by reducing the substantial support for UK agriculture and proposes the UK pursues a strategy that encourages mutually beneficial trade and development. The full report is available at https://www.cgdev.org/publication/developing-country-trade-access-after-brexit-uks-plans-generalized-system-preferences. ###