CEO Forum VI –
“Leading the Recovery: Environmental, Social
    and Governance Imperatives for DFIs",
            Organize...
Structure of Presentation

  Development Finance and Migrant workers
Remittances

  Dealing with Remittances

  Government...
Development Finance and Migrant
      Workers Remittances
Development Finance and Migrant
      Workers Remittances

Money remittances are one of the most
visible links between peo...
Multiplier Effect of Remittances

Individual level
   Better livelihood by enhancing migrants’
   consumption
   Provide b...
Types of Migration

International Migration
  International migration refers to movement of
  people across national bound...
Dealing with Remittances
Dealing with Remittances

     Tapping the official flows and unofficial flows
(It is estimated that amount from unofficia...
Dealing with Remittances
 (contd.)
  Reduce the cost and the complexity of
making transfers, particularly small transfers
...
Dealing with Remittances
(contd.)
Upstream Remittance market
  Inflow from destination country to home
  country
Downstrea...
Government Initiatives
Government
Initiatives
  Welfare funds for assisting returnees

  Encourage investment by wage earners

  Encourage a remi...
Government initiatives (contd.)
  However, to support such initiatives, a
  program of savings mobilization of
  remittanc...
THANK YOU
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Yogesh Agarwal Ceo Panel 1

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Yogesh Agarwal Ceo Panel 1

  1. 1. CEO Forum VI – “Leading the Recovery: Environmental, Social and Governance Imperatives for DFIs", Organized by ADFIAP, Manila, October 28-29, 2009 Presentation on - 'Development Finance and Migrant Workers Remittances’ By Mr. Yogesh Agarwal, CMD, IDBI Bank Ltd., India
  2. 2. Structure of Presentation Development Finance and Migrant workers Remittances Dealing with Remittances Government initiatives
  3. 3. Development Finance and Migrant Workers Remittances
  4. 4. Development Finance and Migrant Workers Remittances Money remittances are one of the most visible links between people working abroad and their countries of origin Remittances impact local economic development activities, entrepreneurial development, savings and job-creation
  5. 5. Multiplier Effect of Remittances Individual level Better livelihood by enhancing migrants’ consumption Provide better education and health parameters National level Coping with Balance of Payment difficulty Financing development
  6. 6. Types of Migration International Migration International migration refers to movement of people across national boundaries Internal Migration Refers to a move from one area to another within one country Rational decision made by an individual after weighing risks and benefits * Opportunity for India in tapping intra-country remittances
  7. 7. Dealing with Remittances
  8. 8. Dealing with Remittances Tapping the official flows and unofficial flows (It is estimated that amount from unofficial channel is double the amount which comes from official channel) Developing confidence and lower cost banking mechanisms Improving the investment climate
  9. 9. Dealing with Remittances (contd.) Reduce the cost and the complexity of making transfers, particularly small transfers Help Micro Finance Institutions to provide adequate services New products and investment opportunities to be developed keeping in mind the geographical areas, entrepreneurial capabilities and expectation of migrants
  10. 10. Dealing with Remittances (contd.) Upstream Remittance market Inflow from destination country to home country Downstream remittance market People returning to their home states. These returnees contribute more than just Savings,like social network,knowledge & skill e.g.India’s outsourcing services industry getting benefited Implication: Need to tap opportunity with retuning emigrants too
  11. 11. Government Initiatives
  12. 12. Government Initiatives Welfare funds for assisting returnees Encourage investment by wage earners Encourage a remittance-backed lending Programme making remittances work for development Support NGOs and community initiatives
  13. 13. Government initiatives (contd.) However, to support such initiatives, a program of savings mobilization of remittance earners, training and skill development may be a good way Governments need to continuously strive to establish and strengthen the emotional connect of the migrant with the home country to ensure continuation of financial flows
  14. 14. THANK YOU

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