Context: As per a World Bank Group report titled COVID-19 Crisis Through a Migration Lens, global remittances are projected to experience their sharpest decline in recent times 20%  owing to migrants losing jobs and wages because of the COVID-19 pandemic.
Key Points

• According to the report, India’s remittances are projected to fall by about 23% in 2020.
• Globally remittances are projected to decline by about 20% in 2020.
• The projected fall is largely due to a fall in the wages and employment of migrant workers due to the recession caused by the Covid-19 pandemic.
• The migrant workers are vulnerable to loss of employment and wages during an economic crisis in a host country.
• The sharp decline in crude prices will also hurt remittances from oil-producing countries such as Saudi Arabia and the United Arab Emirates.
• This will lead to loss of income for expatriate Indians working in the Gulf and elsewhere across the world.

About Remittance

• A remittance is money sent to another party, usually one in another country.
• The sender is typically an immigrant and the recipient a relative back home.
• Remittances represent one of the largest sources of income for people in low-income and developing nations. 
• It often exceeds the amount of direct investment and official development assistance.
• India is the world’s biggest recipient of remittances. Remittances bolsters India's foreign exchange reserves and helps fund its current account deficit.

Significance of fall in Remittances

• Higher remittances improve nutritional outcomes by increasing investments in higher education, a fall in these remittances puts these outcomes at risk.
• It also helps in maintaining key macroeconomic indicator i.e. CAD (Current Account Deficit).
• Remittances are a vital source of income for developing countries. 
• Remittances play a key role in lower and middle income countries in alleviating poverty besides aiding higher spending on education and lowering child labour in disadvantaged households.
• It helps families afford food, healthcare, and basic needs.

Way forward recommended

• 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. 

About World Bank

• The World Bank (WB) is an international organization which provides facilities related to “finance, advice and research to developing nations” in order to bolster their economic development.
• It provides loans and grants to the governments of poorer countries for the purpose of pursuing capital projects.
• It comprises two institutions: The International Bank for Reconstruction and Development (IBRD), and the International Development Association (IDA).
• The World Bank is a component of the World Bank Group.

The five development institutions of the World Bank are as follows,

• International Bank for Reconstruction and Development (IBRD): provides loans, credits, and grants.
• International Development Association (IDA): provides low- or no-interest loans to low-income countries.
• International Finance Corporation (IFC): provides investment, advice, and asset management to companies and governments.
• Multilateral Guarantee Agency (MIGA): insures lenders and investors against political risk such as war.
• International Centre for the Settlement of Investment Disputes (ICSID): settles investment-disputes between investors and countries.