Nepal’s dependence on remittances has doubled in recent
years, up to 30 percent of its GDP. Countries like India and
the Philippines, which have a longer history in the Gulf
and a stronger diplomatic presence, says Kalush, enjoy a
little more clout, but the power dynamic still favors the
employing nations. Meanwhile, countries with weaker or
newer relations with Gulf countries, including most
African nations, are at a severe disadvantage. “Their
embassies are less resourced, they are less able to assist
their citizens, and they feel they have to accept whatever
low wages or poor conditions the Gulf countries offer
them.”
In the midst of the Covid crisis, even this tenuous balance
has unraveled. After months of lockdowns, many migrants
have gone from supporting families back home to
struggling to feed themselves and keep off the streets.
“After all this time without an income, even the middleclass migrant workers are running out of money, showing
up in lines needing food aid,” says Kalush. “These are
people who for years have been the breadwinners for
entire networks.” Cholewinski of the ILO says the impact
of this crisis has upended global networks of labor and
wage flows. “The World Bank has estimated that global
remittances will drop 20 percent this year,” he says, falling
by over $100 billion.
This comes after years of increasing dependence on
foreign-earned wages worldwide—remittances to
developing countries rose from an estimated $76 billion in
2000 to $498 billion in 2018. Remittances from the GCC
totaled about a quarter of this amount, with Saudi Arabia
and the UAE representing the second- and third-highest
global remittance outflow. Now, says Cholewinski, some
migrants in the Gulf are actually finding themselves
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