For many around the world, the COVID-19 pandemic has forced a decision between physical health and economic wellbeing. Low-income workers are most affected, and this is especially true in Latin America, where over half of workers participate in the informal economy. In this sector, workers are self-employed and businesses or “microenterprises” are not taxed or regulated by the government.
On Wednesday, I listened to a webinar hosted by The Dialogue featuring United Nations High Commissioner for Human Rights and former President of Chile Michelle Bachelet. The event, “Covid-19 and and Human Rights in Latin America,” focused on Latin America’s response to the coronavirus pandemic through a human rights perspective. Bachelet highlighted several elements of how COVID-19 is impacting Latin America, including the economic impact, gender and regional vulnerabilities.
COVID-19 and the Informal Economy
Many Latin Americans depend on the informal economy to meet their basic needs. However, workers in the informal economy can’t work remotely. Jobs such as selling goods in a market require the contact and proximity that social distancing measures seek to limit.
Bachelet noted that in the wake of the 2014 Ebola epidemic in West Africa, the informal sector took the longest to recover. This could mean that those working in the informal economy in Latin America may need greater assistance as the continent attempts to recover from the pandemic. As this report outlines, 90% of women in Guinea, Liberia and Sierra Leone, the three countries most affected by the Ebola epidemic, are employed in the informal services and agricultural sectors. The epidemic put women at a greater risk for economic vulnerability as these sectors were disproportionately affected.
A Gender Perspective
Bachelet also said that women have a higher participation rate in the informal economy in Latin America, and as a result face greater challenges due to lockdown orders. Lack of access to education for women and girls prevents them from entering the formal economy. Bachelet emphasized the importance of inclusion of women to create sustainable growth. Additionally, she posed the question, “How will the recovery take gender into account?”
Furthermore, Bachelet noted that lockdown orders that require citizens to stay at home have resulted in higher rates of domestic violence. This has been observed in many countries.
Latin America’s Vulnerability
Latin Americans are specifically vulnerable to the pandemic and lockdowns in several ways. Risk of food insecurity is increased as supply chains are disrupted. Lack of access to water for some Latin Americans makes it difficult to practice frequent hand washing. Additionally, lockdowns and other government action highlight the importance of the freedom of the press.
Bachelet recommended expanding cash transfers and mobile banking in Latin America to aid those most affected by the pandemic. She also pointed to the importance of civil society during the pandemic. Because they are embedded in communities, civil society organizations are essential to local responses. Lastly, Bachelet emphasized the importance of human capital for development in Latin America. Investing in education and health is more important than ever.
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