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Low-Income Households Rank Remote Learning Less Effective Than Other Income Groups

Source: World Economic Forum

By mid-April 2020, 94% of students worldwide were affected by COVID-19. In two surveys of more than 100 countries, online learning platforms were scored 58% fairly effective and 36% very effective. But lower-income households share a different experience: This group is more likely to express that remote learning has not been effective during the COVID-19 pandemic. 

The pandemic has prompted educators and students to adapt to new learning methods and technology. But low-income households are less likely to have access to technologies that allow for a sufficient adaptation to remote learning. In response, some education companies are creating learning content that can be accessed on SD cards and 2G and 3G networks. One company distributes donated smart devices for free to children with limited or no access to online education. 

Since reopening, some schools have adopted a hybrid approach to learning — a trend that may continue after the pandemic, as investments in some education technology companies reached into the billions in 2020. 

Spain’s Supply of Rental Homes Jumped 52% in One Year

Source: Brookings Institution

Spain now has one of the lowest rentership rates compared to European countries, with 23% of households renting their homes. Around 70 years ago, renters made up half of the housing market, according to Brookings Institution. Now, of the 18.6 million households in Spain, fewer than one in four contain renters.

Over the last 20 years, the number of renters in Spain had actually been gradually increasing due to job insecurity and caution around banks granting mortgages. But the COVID-19 pandemic caused rental prices to drop significantly — marking the first drop since the 2009 financial crisis. Brookings states that “the supply of rental homes in Spain increased 52% ​​between September 2019 and September 2020.” 

Similar to other countries, Spain saw a loss of interest in renting during the pandemic — reflecting a decline in tourism and people’s growing desire to relocate to cheaper areas and have more space. The Spanish government responded with policies for “mortgage payment moratoriums, rental assistance and the suspension of evictions for vulnerable families,” notes Brookings.

Digital Exhaustion Threatens the New Hybrid Workplace

Source: Microsoft Work Trend Index survey

Time spent in meetings and chats per person spiked in 2020 and continues to grow. The number of meetings hosted in Microsoft Teams more than doubled — up 148% — as of February 2021, compared to the same time last year. Email communications to commercial and education customers also increased to 40.6 billion, compared to 12.4 billion at the start of COVID-19, according to the Microsoft Work Trend Index.

Many employees reported experiencing digital exhaustion — with 54% of survey respondents feeling overworked and 39% feeling exhausted. “The shared vulnerability of this time has given us a huge opportunity to bring real authenticity to company culture,” Microsoft employee, Jared Spataro says. When employees feel they can bring their whole selves to work, it can actually spur productivity and attract talent, according to Microsoft.

Moving forward, Microsoft recommends five strategies to help business leaders successfully shift to hybrid work: promote flexibility, invest in space and technology, prioritize addressing digital exhaustion from the top, rebuild social capital and culture and rethink employee experience to attract top and diverse talent.

Foreign Aid Is at a Record Peak, But Is It Enough?

Source: Organization for Economic Co-operation and Development (OECD)

Foreign aid rose to an all-time high of $161.2 billion last year, a 3.5% increase from 2019. In many cases, larger economies directed these funds to countries in need of significant help to respond to the short-term impacts from the COVID-19 pandemic, according to the OECD. 

An OECD survey shows that the foreign aid supported health systems, humanitarian aid and food security. However, OECD Secretary-General Angel Gurría added that there will need to be “a much greater effort to help developing countries with vaccine distribution … to build a truly global recovery.” 

Internationally, governments approved $16 trillion worth of COVID-19 stimulus measures, but only 1% was used to help developing countries handle the virus. Trade, foreign direct investment and remittances in developing countries have also declined as a result of the pandemic, intensifying their need for support.

Why Are Central Banks Creating Digital Currencies?

Source: Atlantic Council

Nineteen countries have started to test a central bank digital currency (CBDC) on a small-scale with a limited number of participants. The Atlantic Council defines CBDC as “the digital form of a country’s fiat currency that is also a claim on the central bank.”

As of today, the People’s Bank of China (PBOC) and the European Central Bank (ECB) are prominent players in the digital currency realm. The United States currently lags behind in the research phase, yet the Federal Reserve has expressed continued interest in the digital dollar.

As digital currencies expand globally, there are challenges ahead — the legal, political and regulatory properties of CBDCs remain unclear. But the IMF notes that there are also multiple benefits to having government involvement in digital currencies, including lower cash transfer costs, greater accessibility to banking services and easier implementation of monetary policies. 

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