IMF calls for steps to help Asia’s most vulnerable workers

TOKYO – Asian policymakers must expand safety nets for the region’s huge group of temporary and part-time workers most vulnerable to the economic devastation caused by the coronavirus pandemic, the International Monetary Fund said in a blog post on Thursday.

Total or partial blockades to curb the spread of COVID-19 are having devastating effects on companies and workers across Asia.

But the most vulnerable are so-called informal workers or those who work part-time and temporary without social security, and in sectors of the economy that are not taxed or regulated in any way by the government, the IMF said on the blog.

Informal workers in the Asia-Pacific region account for almost 60% of non-farm employment, more than in Latin America and Eastern Europe, and range from around 20% in Japan to over 80% in Myanmar and Cambodia, said.

“Timing is everything” in deploying effective political measures to prevent such workers from falling deeper into poverty, as their family income would be at risk if they cannot work for long periods of time, the IMF said.

Asian policymakers can save informal workers with a “New Deal” program that provides immediate protection against the economic consequences of the pandemic while also addressing long-standing inequalities in access to health and basic services, said.

The program could include more expansive safety nets and investments in digital platforms that offer education and financial services to a broader population, he said.

“The temptation to introduce universal cash transfers ‘giving money to everyone’ must be mitigated with the aim of ensuring that adequate support reaches the most vulnerable,” said the IMF blog.

The blog was written by senior officials from the IMF’s Asia and Pacific Department, including its director Chang Yong Rhee.

(Report by Leika Kihara; Simon Cameron-Moore edition)