Remarks on “Sending Money Home to Africa” IFAD Report Borany Penh Office of Poverty Reduction Global Forum on Remittances Tunis, Tunisia October 22, 2009

Continues international highlight on importance of remittances New data & perspectives about remittances markets and players Africa focus, disaggregation by regions & gender Identifies issues requiring multi-stakeholder attention: private sector, governments, donors, MFIs, regional orgs, think tanks, etc. Reaffirms importance of rural outreach, financial literacy, capacity building, and innovation Report’s Contributions

Continues international highlight on importance of remittances

New data & perspectives about remittances markets and players

Africa focus, disaggregation by regions & gender

Identifies issues requiring multi-stakeholder attention: private sector, governments, donors, MFIs, regional orgs, think tanks, etc.

Reaffirms importance of rural outreach, financial literacy, capacity building, and innovation

Follow-on Recommendations contextualize within global recession and its aftermath present risks as well as opportunities with change disaggregate data and analysis within countries more in-depth research on informal remittances systems in Africa: incentives, actors, integration, etc. discuss linkages to diaspora engagement & development

contextualize within global recession and its aftermath

present risks as well as opportunities with change

disaggregate data and analysis within countries

more in-depth research on informal remittances systems in Africa: incentives, actors, integration, etc.

discuss linkages to diaspora engagement & development

Remittances & Poverty Reduction? Poverty reduction impact of remittances ambiguous: consumption vs. investment? reduced incentive to produce and innovate? More impact from: improving overall business enabling environment for savings & investment? complementary partnerships between market actors, ex: banks & MFIs?

Poverty reduction impact of remittances ambiguous:

consumption vs. investment?

reduced incentive to produce and innovate?

More impact from:

improving overall business enabling environment for savings & investment?

complementary partnerships between market actors, ex: banks & MFIs?

Diaspora & Development Remittances are just one form of diaspora engagement… and P2P private transfers.

USAID’s DNA Framework USAID’s diaspora public-private alliance framework DNA: migrants’ connection to homelands Enables partnerships between USAID and diasporas through knowledge development, engagement, and operational work. DNA mechanisms: ADM & Haitian DM

USAID’s diaspora public-private alliance framework

DNA: migrants’ connection to homelands

Enables partnerships between USAID and diasporas through knowledge development, engagement, and operational work.

DNA mechanisms: ADM & Haitian DM

Diaspora & Development (2) Greater development impact from “Diaspora Direct Investment” or “collective remittances”? Most USAID diaspora engagement experience in Latin America Need better understanding of other diaspora communities & networks (behavior, risk appetite, resources, etc.) New pilot research & development programs, ex: African Diaspora Marketplace

Greater development impact from “Diaspora Direct Investment” or “collective remittances”?

Most USAID diaspora engagement experience in Latin America

Need better understanding of other diaspora communities & networks (behavior, risk appetite, resources, etc.)

New pilot research & development programs, ex: African Diaspora Marketplace

What is ADM? A $2m business plan competition open to U.S.-based African diaspora Goal: boost economic opportunities and employment in SSA A GDA partnership with Western Union, Ecobank, OPIC, & others Learning pilot

A $2m business plan competition open to U.S.-based African diaspora

Goal: boost economic opportunities and employment in SSA

A GDA partnership with Western Union, Ecobank, OPIC, & others

Learning pilot

Additional Resources www.usaid.gov/gda www.diasporamarketplace.org www.microlinks.org www.povertyfrontiers.org

www.usaid.gov/gda

www.diasporamarketplace.org

www.microlinks.org

www.povertyfrontiers.org