This document summarizes research on the effects of the global economic slowdown on remittances sent by overseas Pakistani workers. It outlines trends in Pakistani migration and remittances from 2002-2012. While remittance flows to Pakistan held steady during the crisis, some neighboring countries saw declines. Case studies on other countries found impacts ranging from small GDP declines to reductions in household welfare. The document recommends engaging the Pakistani diaspora beyond remittances and aligning migration policy with development goals.
The remittance market is growing every year and has become an important source of income for many country's GDP. In this short presentation you will find out who benefiting the most from this inflow of money.
The remittance market is growing every year and has become an important source of income for many country's GDP. In this short presentation you will find out who benefiting the most from this inflow of money.
Key Growth Drivers and Fiscal Challenges in Economy: India and ChinaDibyajyoti Saikia
This presentation provides a comparison of Indian and Chinese economy in context to Key Growth Drivers and Fiscal Challenges.
Happy reading and Thanks!
This is an update of the 2012 presentation at https://www.slideshare.net/WorldResources/emerging-actors-in-development-finance-a-closer-look-at-chinas-overseas-investment
When it comes to overseas development finance, China is definitely a country to watch. Due to the country’s unprecedented economic growth, China’s overseas investments have increased exponentially in recent years. Between 2009 and 2010, two Chinese state-owned banks lent more money to other developing nations than the World Bank did. In fact, between 2002 and 2011, China’s outward foreign direct investment (OFDI) stock grew from $29 billion to more than $424 billion.
But what factors are driving all of this growth? What areas of the world are on the receiving end of China’s OFDI flows? And what sorts of social and environmental standards are in place for banks’ and enterprises’ investments? WRI answers these questions and many more in its recently updated powerpoint presentation "Chinese Development Finance: A Closer Look at Chinese Sustainable Finance."
The China Compass - Figures, Forecast and Analysis - January 2014William Dey-Chao
The China Compass:
• Combines basic country data for China, as well as other major world economies, with more detailed analysis of a wide range of macroeconomic and social data
• Presents a comprehensive picture of the ever-changing and evolving Chinese landscape
• Contains up-to-date statistics, topical themes and insights
• Is presented in a reader-friendly format as a useful desk reference for executives with a China agenda
Since our last edition, developed economies have slowly recovered from the after-effects of the global financial crisis, leading to a brighter global economic outlook. However, with China's GDP growth easing to 7.8% in 2012 and 7.7% year-on-year in the first three quarters of 2013, corporations and governments alike are grappling with the realisation that China's era of double-digit growth is over, and are searching for clarity to appropriately shape their future agenda with and in China.
Internally, China's fifth generation of leaders led by President Xi Jinping must convince an immense bureaucracy to implement an ambitious economic blueprint for the next decade. The blueprint includes long-anticipated economic and social reforms aimed at keeping China's increasingly complex economy on a path of sustainable growth.
The theme for this edition is 'China's Ongoing Transformation', which covers China's changing political, economic and social patterns, to complement regular sections including:
• Selected Macroeconomic Indicators
• Domestic Consumption and Foreign Trade
• Domestic and Foreign Investment
• Financial Indicators
• Social Indicators
We trust that this edition of The China Compass will continue to offer insights on past developments, current issues and future prospects of the Chinese economy, shedding light on this fascinating and complex story.
As always, we welcome and appreciate all feedback.
The China Compass - Figures, Forecast and Analysis - January 2014Daniel Galvez
The China Compass is a dynamic presentation of the latest macroeconomic data for a wide range of indicators for China, as well as other major world economies. It presents a comprehensive picture of the ever-changing and evolving Chinese landscape and contains up-to-date statistics, topical themes and insights. It is presented in a reader-friendly format as a useful desk reference for executives with a China agenda.
Since our last edition, developed economies have slowly recovered from the after-effects of the global financial crisis, leading to a brighter global economic outlook. However, with China's GDP growth easing to 7.8% in 2012 and 7.7% year-on-year in the first three quarters of 2013, corporations and governments alike are grappling with the realisation that China's era of double-digit growth is over, and are searching for clarity to appropriately shape their future agenda with and in China.
Internally, China's fifth generation of leaders led by President Xi Jinping must convince an immense bureaucracy to implement an ambitious economic blueprint for the next decade. The blueprint includes long-anticipated economic and social reforms aimed at keeping China's increasingly complex economy on a path of sustainable growth.
The theme for this edition is 'China's Ongoing Transformation', which covers China's changing political, economic and social patterns.
Human resource development and foreign remittances : The case of South Asia. The paper explains links between HRD, migration and remittances in Afghanistan, Bangladesh, Bhutan, Nepal, India, Pakistan, Sri Lanka, and Maldives
Key Growth Drivers and Fiscal Challenges in Economy: India and ChinaDibyajyoti Saikia
This presentation provides a comparison of Indian and Chinese economy in context to Key Growth Drivers and Fiscal Challenges.
Happy reading and Thanks!
This is an update of the 2012 presentation at https://www.slideshare.net/WorldResources/emerging-actors-in-development-finance-a-closer-look-at-chinas-overseas-investment
When it comes to overseas development finance, China is definitely a country to watch. Due to the country’s unprecedented economic growth, China’s overseas investments have increased exponentially in recent years. Between 2009 and 2010, two Chinese state-owned banks lent more money to other developing nations than the World Bank did. In fact, between 2002 and 2011, China’s outward foreign direct investment (OFDI) stock grew from $29 billion to more than $424 billion.
But what factors are driving all of this growth? What areas of the world are on the receiving end of China’s OFDI flows? And what sorts of social and environmental standards are in place for banks’ and enterprises’ investments? WRI answers these questions and many more in its recently updated powerpoint presentation "Chinese Development Finance: A Closer Look at Chinese Sustainable Finance."
The China Compass - Figures, Forecast and Analysis - January 2014William Dey-Chao
The China Compass:
• Combines basic country data for China, as well as other major world economies, with more detailed analysis of a wide range of macroeconomic and social data
• Presents a comprehensive picture of the ever-changing and evolving Chinese landscape
• Contains up-to-date statistics, topical themes and insights
• Is presented in a reader-friendly format as a useful desk reference for executives with a China agenda
Since our last edition, developed economies have slowly recovered from the after-effects of the global financial crisis, leading to a brighter global economic outlook. However, with China's GDP growth easing to 7.8% in 2012 and 7.7% year-on-year in the first three quarters of 2013, corporations and governments alike are grappling with the realisation that China's era of double-digit growth is over, and are searching for clarity to appropriately shape their future agenda with and in China.
Internally, China's fifth generation of leaders led by President Xi Jinping must convince an immense bureaucracy to implement an ambitious economic blueprint for the next decade. The blueprint includes long-anticipated economic and social reforms aimed at keeping China's increasingly complex economy on a path of sustainable growth.
The theme for this edition is 'China's Ongoing Transformation', which covers China's changing political, economic and social patterns, to complement regular sections including:
• Selected Macroeconomic Indicators
• Domestic Consumption and Foreign Trade
• Domestic and Foreign Investment
• Financial Indicators
• Social Indicators
We trust that this edition of The China Compass will continue to offer insights on past developments, current issues and future prospects of the Chinese economy, shedding light on this fascinating and complex story.
As always, we welcome and appreciate all feedback.
The China Compass - Figures, Forecast and Analysis - January 2014Daniel Galvez
The China Compass is a dynamic presentation of the latest macroeconomic data for a wide range of indicators for China, as well as other major world economies. It presents a comprehensive picture of the ever-changing and evolving Chinese landscape and contains up-to-date statistics, topical themes and insights. It is presented in a reader-friendly format as a useful desk reference for executives with a China agenda.
Since our last edition, developed economies have slowly recovered from the after-effects of the global financial crisis, leading to a brighter global economic outlook. However, with China's GDP growth easing to 7.8% in 2012 and 7.7% year-on-year in the first three quarters of 2013, corporations and governments alike are grappling with the realisation that China's era of double-digit growth is over, and are searching for clarity to appropriately shape their future agenda with and in China.
Internally, China's fifth generation of leaders led by President Xi Jinping must convince an immense bureaucracy to implement an ambitious economic blueprint for the next decade. The blueprint includes long-anticipated economic and social reforms aimed at keeping China's increasingly complex economy on a path of sustainable growth.
The theme for this edition is 'China's Ongoing Transformation', which covers China's changing political, economic and social patterns.
Human resource development and foreign remittances : The case of South Asia. The paper explains links between HRD, migration and remittances in Afghanistan, Bangladesh, Bhutan, Nepal, India, Pakistan, Sri Lanka, and Maldives
Diaspora and Economy: Effects of the Global Economic Slowdown on RemittancesVaqar Ahmed
Diaspora and Economy: Effects of the Global Economic Slowdown on Remittances
by
Dr. Vaqar Ahmed
Deputy Executive Director
Sustainable Development Policy Institute
This paper investigated the performance of FDI in Kosovo. FDI flows
continue to be provided for development of Kosovo. Sector restructuring of
the economy and allocation of FDI has special importance. The development
of manufacturing sector and processing industry and tourism in some
territories of Kosovo is also a challenge that must be resolved because it
will affect economic development, employment generation continued.
Withdrawal of modern technology in these sectors would help in
maintaining the balance between the different benefits and a clean
environment. Environmental concerns caused by FDI in some territories of
Kosovo are fundamental problems that require solutions. Elimination of
barriers to FDI, the strengths and weaknesses that were offered to investors
are the primary issues that attract investment. Except FDI are in positive
correlation with GDP, at the national level factors of human resource
allocation are important in the territories where the population movement
due to the economic stagnation, and such cases can be found in Kosovo.
Keywords: Flow of FDI, The restructuring of the economy, The allocation of FDI,Environmental concerns.
Diaspora and Economy: Effects of Global Economic Slowdown on Remittances
1. Diaspora & Economy: Effects of the Economic
Slowdown on Remittances
Muhammad Sohaib
BBRM-10
Sustainable Development Policy Institute
1
2. Outline
• Introduction
• Global Economic Slowdown
• Patterns and Trends in Migration
• Contributions of Diaspora
• Remittances Flow to Developing Countries
• Remittances to Pakistan
• Some Case Studies
• GoP Initiatives
• Future Outlook
• Overseas Pakistanis: Manifestos of Political Parties 2013
4. Global Economic Slowdown
• Global Financial Crisis 2007
• Global Economy Contracted in 2008-2009
• Downturn directly hit the advanced economies
• In 2009 GDP per capita turned down in 60 out of 107
developing economies (UN 2010)
Source: UN Global Economic Outlook 2012
5. Patterns and Trends in Migration
There are few jumps and down falls, but there is a big climb started in 2005
0
50000
100000
150000
200000
250000
300000
350000
400000
450000
500000
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Total Migrants
7. Pakistani Workers Registered for Overseas Employment
2002-2012
Migrant flow to: UAE drops in 2008, Saudi Arabia 2009 and diminishes in Oman in 2009
Data Source: BEOE
0
50000
100000
150000
200000
250000
300000
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Saudi Arabia
UAE
Oman
8. Pakistani Workers Registered for Overseas Employment
2002-2012
Decline observed in the case of Khyber Pakhtunkhwa and Punjab
0
50000
100000
150000
200000
250000
300000
Punjab
Sindh
K.Pakhtunkhwa
Balochistan
Azad Kashmir
N.Area
Tribal Area
9. Contributions of Diasporas
Diasporas contributed in three facets
• Remittances
• Brain Drain
(Brain Drain is a talent mobility; which can bring benefits to both host and home countries)
- South Asian Brain Dain
- Silicon valley of India (Bangalore)
• Role as Intermediaries
-Diasporas can connect home countries to foreign investors
- Cultural interpreters
10. Remittances to Developing Countries
Remittances have shown resilience than FDI since the
global financial crisis
Developing countries received $ 401 billion remittances
in 2012(World Bank)
In history it can be observe that remittance remained
stable
(Mexican financial crisis 1995, Asian Market Crisis 1997)
11. Remittances to Developing Countries
The remittance flows to developing countries in 2006 were 235 $billion and it increased in 2007
with a growth rate of 22.9 percent to 289 $billion, and increased to 338 $billion in 2008 with a
growth rate of 16.9 percent
12. Top 10 Recipients of Remittances in 2012
69
60
24 23
21 21
14 14
10
7
0
10
20
30
40
50
60
70
80
India China Philipines Mexico Nigeria Egypt Banladesh Pakistan Vietnam Lebnan
$USBillion
Three South Asian countries are in top 10 recipients
Source: World Bank, Migration and Remittance Brief 20
13. Workers’ Remittances to Pakistan
2002-2011
Was there no impact of Global Financial Crisis on Remittances?
Data Source: State Bank of Pakistan
0
2,000
4,000
6,000
8,000
10,000
12,000
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
US$Million
14. Some Case Studies
Barajas et al (2010) investigated the effect of economic
slow down on worker’s remittances of Africa
(Many countries were forecast to lose 0.1 to 0.2 percent GDP growth due to fall in
remittances in 2009)
Ratha. D and Mahapatra. S argued that the global
financial crisis has caused decline in remittance flows to
low income economies
Balan et al (2011) evaluated the remittances and
migration flows during the financial crisis in the
European Countries
15. Some Case Studies
Raihan .S (2010) examined the impact of global
financial crisis on remittances, exports and poverty in
Bangladesh.
(He analyzed the negative shock in remittance will result decline in real GDP by 0.1
percent)
Raihan. S (2010) explored the impact of global financial
crisis on migration and remittances in Bangladesh.
(The macro statistics showed positive growth in remittances during the crisis but there
were large number of household who faced fall in remittance inflows by migrants)
16. Some Case Studies
Ahmed et al. (2010) examined the impact of
remittances on economy and household welfare
(If remittances inflows reduced to 50 percent, the GDP growth declined to 0.7% as a
result and investment and imports also decreased to 7.7 percent and 6.4 percent
respectively)
Ahmed and Sugiyarto (2012) find that improvement of
household consumption and investment are positively
and consumer prices are negatively associated with
remittances
17. GoP Initiatives
• BOEO is working under the emigration ordinance of
1979
• Overseas Employment Corporation (OEC)
• Overseas Pakistanis Foundation (OPF)
• Foreign Remittance Card Scheme
• Pakistan Remittance Initiative
18. Workers’ Remittances from Abroad
2002-2011
• Remittances not affected during and after the crisis
– Traditional migrant economies in Middle East remained
insulated (except UAE)
– Indian Diaspora in Middle East was a lesser competition
given the appreciation of Indian currency
– The weakening of Pakistani currency implied that
Diaspora’s consumer surplus increased when purchase was
made locally
19. Future Outlook
• Demand Side Factors
The flow of remittances will continue to increase in the
foreseeable future
Pakistani migrants have embarked upon non-traditional
workplace destinations as well
East is a good Option
The banking sector in Pakistan is now viewing the remittances
as a major source of business
20. Future Outlook
• Supply Side Factors
EU will remain in recession
North America will continue to Maintain its strict visa policies
China and East Asia will be future engines for Economic
Growth
Middle East will continue to diversify away from South Asian
Migrants
21. Recommendations
• Diaspora may be engaged beyond their monetary
contributions : in terms of knowledge and technology
• Migration Policy needs to be aligned with the Development
Policy
• Banking Sector can play a vital role
• Role of Overseas Pakistanis Division needs to be revisited
22. Overseas Pakistanis: Political Parties
Manifestos 2013
• Pakistan Muslim League – N
• Pakistan Tehreek-i-Insaf
• Pakistan Peoples Party
• Pakistan Muslim League - Q
• Muttahida Qauami Movement