This document summarizes a presentation on remittances given at a workshop. It begins with an introduction and overview of remittances that defines them as money flows sent by immigrant workers to relatives. It then discusses key topics like the huge and growing volumes of remittances globally, important characteristics of remittance corridors and providers, and migrants' expectations and behaviors. The document outlines main issues around the formal vs informal sector, costs of remittances, reaching remote recipients, and use of funds. It concludes by summarizing approaches to remittances by organizations like AFD, the African Development Bank, and PlaNet Finance which focus on partnerships, financial products, and financial literacy.
Presentation foreign remittance and economic developmentHemesiri Kotagama
This document discusses foreign remittance and its role in economic development. It notes that remittances to Sri Lanka exceed foreign direct investment by 2-3 times and account for 7% of GDP. While remittances have helped reduce poverty and supported consumption, their development impact remains ambiguous as most funds are spent on consumption rather than investment. The document advocates policies to encourage productive migration, formalize remittance channels, and mobilize remittances towards investments in small businesses and infrastructure through instruments like Sri Lanka's Nation Building Bonds. With effective policies, remittances could significantly contribute to Sri Lanka's development across different dimensions.
This document summarizes a case study on global remittances. It defines remittances as international transfers of funds sent by migrant workers to family members in their home countries. In 2009, $414 billion was remitted globally, with $316 billion going to developing countries. Remittances are recorded in the current account of the balance of payments framework as they are transfers rather than direct investments. Top remitting countries include the US, Saudi Arabia, and Germany, while top receiving countries are India, China, Mexico, and the Philippines. Remittances represent a significant portion of GDP for smaller and developing countries. The cost of remittances is intensely scrutinized due to its increase over time and potential for money laund
Remittances, or money transferred by foreign workers to their home countries, have grown significantly in size and importance. In 2005, global remittances totaled over $232 billion, with developing countries receiving about two-thirds of that amount. The top three recipient countries were India, China, and Mexico, receiving around a quarter of global remittances. However, when viewed as a percentage of GDP, smaller, poorer countries tend to rely more heavily on remittances. Remittances have also become a more stable and important source of capital than foreign direct investment or official development assistance. Improving remittance processes through new technologies could help further economic development in receiving countries.
Foreign Remittances and their Impact on the Economy of PakistanMuhammad Umair
This document discusses foreign remittances to Pakistan from 1947-2014. It notes that remittances totaled over $500 billion worldwide in 2012, with Pakistan receiving $14 billion, and provides statistics on remittance amounts over time. Remittances have significantly impacted Pakistan's economy, helping to reduce its trade and budget deficits while boosting consumption, investment, and GDP. However, over-reliance on temporary remittances is not a sustainable economic model for Pakistan.
Socio-economic Impact of Remittance on Households: A Study on Khulna, Bangladeshiosrjce
Foreign remittance to Bangladesh now become one of the vital sources of foreign exchange earnings
and it also plays a significant role by reducing the foreign-exchange constraint and improving the balance of
payments, ensuring imports of various types of capital goods, and raw materials for industrial development.
Furthermore, it has also increased the supply of savings and investment for capital formation and development
in country’s economic condition and thus it accelerates economic development of a country. But this study
attempted to evaluate the impact of foreign remittances on socio-economic condition of households in Khulna
city. This paper uses various data of households of Khulna city to analyze the impact of foreign remittances on
the socio-economic condition of households. The results of this analysis were compared to those households
who do not receive remittances to clearly identify the decision of the households to spend remittances in
different sector. Unlike to other studies, this study reveals that households receiving remittances spend less on
food consumption, consumer durables and other consumer goods than do households who do not receive any
remittances. This study finds that households receiving remittances spend heavily on various investment
activities like land purchase, building construction, other investment activities and this investment constitutes
more than half of the remittances received during the last 12 months counted from August 2012 to July 2013.
This study also finds that households receiving remittances in Khulna city spend more on education than do
households having no remittances which is a good sign of any economy as investment in education is treated as
investment in human capital. However, this study also finds that foreign remittances help households to spend
more on social ceremonies, households’ services and electrical goods which indicate improved living standard
and socio-economic condition.
The document provides an overview of remittances and discusses several key topics. It begins with general information on remittance volumes, statistics, characteristics like corridors and provider types, and migrant expectations and behaviors. It then covers main issues such as the informal vs formal debate, costs of remittances which remain quite high despite commitments to lower prices, challenges with reaching rural "last mile" recipients, and debates around how remittances are used. Existing solutions discussed include suggestions from development organizations to enhance offerings, promote "bi-bancarization", focus on productive investments, and utilize new technologies. The Planet Finance approach aims to promote affordable remittances through partnerships, financial literacy training, and tailored financial products.
The document discusses strategies to reduce economic disparities, including trade, market access, debt relief, aid, and remittances. It evaluates the effectiveness of these strategies through case studies on banana production in the Windward Islands, structural adjustment programs in Uganda, and housing solutions for slums in Kibera, Kenya. The document also covers topics like the EU's Common Agricultural Policy, trade agreements like GATS, and the impact of foreign investment.
Presentation foreign remittance and economic developmentHemesiri Kotagama
This document discusses foreign remittance and its role in economic development. It notes that remittances to Sri Lanka exceed foreign direct investment by 2-3 times and account for 7% of GDP. While remittances have helped reduce poverty and supported consumption, their development impact remains ambiguous as most funds are spent on consumption rather than investment. The document advocates policies to encourage productive migration, formalize remittance channels, and mobilize remittances towards investments in small businesses and infrastructure through instruments like Sri Lanka's Nation Building Bonds. With effective policies, remittances could significantly contribute to Sri Lanka's development across different dimensions.
This document summarizes a case study on global remittances. It defines remittances as international transfers of funds sent by migrant workers to family members in their home countries. In 2009, $414 billion was remitted globally, with $316 billion going to developing countries. Remittances are recorded in the current account of the balance of payments framework as they are transfers rather than direct investments. Top remitting countries include the US, Saudi Arabia, and Germany, while top receiving countries are India, China, Mexico, and the Philippines. Remittances represent a significant portion of GDP for smaller and developing countries. The cost of remittances is intensely scrutinized due to its increase over time and potential for money laund
Remittances, or money transferred by foreign workers to their home countries, have grown significantly in size and importance. In 2005, global remittances totaled over $232 billion, with developing countries receiving about two-thirds of that amount. The top three recipient countries were India, China, and Mexico, receiving around a quarter of global remittances. However, when viewed as a percentage of GDP, smaller, poorer countries tend to rely more heavily on remittances. Remittances have also become a more stable and important source of capital than foreign direct investment or official development assistance. Improving remittance processes through new technologies could help further economic development in receiving countries.
Foreign Remittances and their Impact on the Economy of PakistanMuhammad Umair
This document discusses foreign remittances to Pakistan from 1947-2014. It notes that remittances totaled over $500 billion worldwide in 2012, with Pakistan receiving $14 billion, and provides statistics on remittance amounts over time. Remittances have significantly impacted Pakistan's economy, helping to reduce its trade and budget deficits while boosting consumption, investment, and GDP. However, over-reliance on temporary remittances is not a sustainable economic model for Pakistan.
Socio-economic Impact of Remittance on Households: A Study on Khulna, Bangladeshiosrjce
Foreign remittance to Bangladesh now become one of the vital sources of foreign exchange earnings
and it also plays a significant role by reducing the foreign-exchange constraint and improving the balance of
payments, ensuring imports of various types of capital goods, and raw materials for industrial development.
Furthermore, it has also increased the supply of savings and investment for capital formation and development
in country’s economic condition and thus it accelerates economic development of a country. But this study
attempted to evaluate the impact of foreign remittances on socio-economic condition of households in Khulna
city. This paper uses various data of households of Khulna city to analyze the impact of foreign remittances on
the socio-economic condition of households. The results of this analysis were compared to those households
who do not receive remittances to clearly identify the decision of the households to spend remittances in
different sector. Unlike to other studies, this study reveals that households receiving remittances spend less on
food consumption, consumer durables and other consumer goods than do households who do not receive any
remittances. This study finds that households receiving remittances spend heavily on various investment
activities like land purchase, building construction, other investment activities and this investment constitutes
more than half of the remittances received during the last 12 months counted from August 2012 to July 2013.
This study also finds that households receiving remittances in Khulna city spend more on education than do
households having no remittances which is a good sign of any economy as investment in education is treated as
investment in human capital. However, this study also finds that foreign remittances help households to spend
more on social ceremonies, households’ services and electrical goods which indicate improved living standard
and socio-economic condition.
The document provides an overview of remittances and discusses several key topics. It begins with general information on remittance volumes, statistics, characteristics like corridors and provider types, and migrant expectations and behaviors. It then covers main issues such as the informal vs formal debate, costs of remittances which remain quite high despite commitments to lower prices, challenges with reaching rural "last mile" recipients, and debates around how remittances are used. Existing solutions discussed include suggestions from development organizations to enhance offerings, promote "bi-bancarization", focus on productive investments, and utilize new technologies. The Planet Finance approach aims to promote affordable remittances through partnerships, financial literacy training, and tailored financial products.
The document discusses strategies to reduce economic disparities, including trade, market access, debt relief, aid, and remittances. It evaluates the effectiveness of these strategies through case studies on banana production in the Windward Islands, structural adjustment programs in Uganda, and housing solutions for slums in Kibera, Kenya. The document also covers topics like the EU's Common Agricultural Policy, trade agreements like GATS, and the impact of foreign investment.
Remittances and Household Welfare:
A Case Study of Pakistan
by
Vaqar Ahmed, Guntur Sugiyarto, and Shikha Jha
Sustainable Development Policy Institute
Asian Development Bank
- The document analyzes the impact of remittances from the Bangladeshi diaspora on Bangladesh's economy. It investigates the channels through which remittances are transferred and their contribution to poverty reduction.
- Literature review covers topics like global remittance inflows to developing countries, Bangladesh's increasing remittance receipts over time, and key terms like remittances and diaspora.
- The study uses interviews and secondary data to examine remittance determinants, find a correlation between education/income and remittance behavior, and identify that most remittances are sent through informal hundi channels instead of banks.
- The conclusion is that migration reduces unemployment
The document discusses financing sustainable development in Africa. It outlines the Common African Position (CAP) on the post-2015 development agenda, which calls for improving domestic resource mobilization, innovative financing, and quality external financing partnerships. The document also examines Africa's economic transformation needs, including increasing agricultural productivity and revitalizing manufacturing. It analyzes trends in infrastructure financing from public-private partnerships, China, and other sources. Overall, the document emphasizes that domestic resource mobilization should be the priority and financial flows must consider broader development strategies and impacts.
Diaspora bond unlocking diaspora savings opportunities for investments in cam...Emmanuel Lao
This digital artifact highlights the importance of mobilizing the diaspora savings through "diaspora bonds" to finance development projects in a developing country like Cameroon with a growing and dynamic diaspora around the world.
1) The document discusses moving from viewing fragile situations as "fragile states" and instead focusing on "states of fragility" to acknowledge fragility as an issue that can affect any state.
2) It notes reducing poverty in fragile contexts will require building resilient institutions, as fragile states are less likely to achieve goals like the Millennium Development Goals.
3) The allocation of development assistance needs to be better targeted, as currently only a small portion goes to areas like security, justice and political reform that directly address fragility.
The document discusses evidence on the impact of International Finance Corporation (IFC) tourism investments in Latin America and the Caribbean. It finds that IFC tourism investments have contributed significantly to economic development in the region in 3 key ways:
1) IFC investments in tourism and hospitality projects have helped drive growth of the services sector and national economies in many countries in the region.
2) Resort developments supported by IFC have promoted economic development in less developed regions within countries.
3) Tourism brings substantial benefits to countries through job creation, increased tax revenues, and opportunities for small businesses, helping reduce poverty.
Foreign Aid & Public Investment in Pakistanbc080200109
The document discusses public investment and foreign aid. It defines public investment and describes different types of public investment including productive and non-productive investment. It also lists various sources of public investment such as taxes, money printing, exports, bonds/equity, remittances, and foreign aid/debt. The objective of the study is to analyze the effect of foreign aid on public investment and economic growth in Pakistan. Several literature reviews on the relationship between foreign aid, investment, and growth in other countries are also summarized.
This document summarizes key points from "The Least Developed Countries Report 2012" regarding harnessing remittances and diaspora knowledge to build productive capacities in LDCs. It finds that remittances to LDCs have grown significantly and now surpass FDI and ODA. However, costs of remitting remain high. Brain drain also affects LDCs more intensely than other countries. The report proposes policies to lower remittance costs, mobilize diaspora knowledge networks, and create a new investment scheme to transfer diaspora knowledge and invest in productive sectors.
The positive impact of fdi in many sectors of the economy that Kosovo but not...nakije.kida
This document discusses foreign direct investment (FDI) in Kosovo and its impact on various sectors of the economy as well as on living standards and the environment. It notes that while FDI has had a positive impact on many sectors, it has not significantly improved living standards or addressed all environmental concerns. The document provides background on Kosovo's economy and trends in FDI inflows in recent years. It examines factors that attract investment and sectors that have received FDI. While recognizing FDI as an important factor for development, it also argues that policies are needed to ensure sustainable development, equitable growth across regions, and protection of the environment.
The document discusses Sweden's implementation of the 2030 Agenda and the Sustainable Development Goals (SDGs). It states that all government ministers are responsible for implementing the 2030 Agenda within their policy areas. Sweden's focus areas include strengthening SDG 14 on oceans, promoting decent work, and a feminist foreign policy. A National Delegation has been appointed to support and monitor Sweden's domestic and global implementation of the Agenda. The Addis Ababa Action Agenda (AAAA) and Sweden's Policy for Global Development are connected frameworks for fulfilling the objectives of the 2030 Agenda through mobilizing resources and engaging all stakeholders.
Improving the business environment and access to finance for SMEsOECDglobal
Presentation by Ms. Kristin Schreiber, Director, COSME Programme, DG GROW, European Commission - EU financial instruments available for SMEs from the EU enlargement region, at the Launch of the SME Policy Index for the Western Balkans and Turkey 2016. 28 April 2016, OECD, Paris, France.
This document discusses foreign direct investment (FDI) in Kosovo. It provides background on Kosovo's economy and trends in FDI flows. Key points include:
- FDI continues to be important for development in Kosovo and sector restructuring/allocation of FDI is a priority.
- Major sectors that have attracted FDI are financial services, transport, real estate, energy, manufacturing, construction and mining. The largest investors are from European Union countries like Slovenia, Germany and the UK.
- Ensuring sustainable development and equitable allocation of resources, including addressing environmental concerns caused by some FDI, are important challenges.
- FDI can help development by bringing technology and skills, but also needs to avoid
Financing a Post-2015 Development FrameworkSDGsPlus
The document discusses parameters to consider in developing a post-2015 financing framework to support a new set of development goals. It argues that a two-pronged approach is needed that increases the impact of available resources through good policies and credible institutions, while also leveraging additional resources from domestic and foreign sources both public and private. Key recommendations include generating more domestic revenues, ensuring efficient public spending, promoting financial inclusion, maximizing the impact of official development assistance, and leveraging the private sector.
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
Nigeria receives most of its financing from personal remittances, which make up 72% of total receipts. Foreign direct investment is the next largest source, totaling $3.497 billion or 11% of receipts. Official development assistance is also 11% of receipts, with major donors being IDA, the United States, and United Kingdom. However, Nigeria only collects 1.483% of its GDP in tax revenue, which is far below the recommended minimum of 15%. To boost domestic financing, Nigeria needs tax, customs, and administrative reforms to increase tax collection and educate citizens on the tax process. It also needs to diversify its economy by increasing foreign direct investment and reducing reliance on remittances.
This presentation offers a brief introduction to the recently adopted Sustainable Development Goals and the financial challenges in achieving them. It also provides a general overview of the different sources of finance for development – ODA, domestic resources and private finance – and ventures into the character of each of these options. The key message of the presentation is that whichever source of finance we choose from, they should be used in the most efficient and effective way possible. The presentation needs to be viewed as a slide show as it includes audio.
The document discusses mobilizing private finance for Botswana's Economic Stimulus Package through a bond fund. It proposes a 7-10 year real estate development bond fund financed by pension and insurance funds. The bond would be fully guaranteed by the government of Botswana and tied to inflation rates to incentivize investment. Bond repayments would come from stimulus project funds, improved tax collections, and mineral revenues through improved procurement. The proposal aims to diversify the economy, create jobs, and increase consumer spending through infrastructure projects like schools, housing, and roads.
The document discusses remittance flows to Ethiopia, challenges, and initiatives to expand them. It provides background on global remittance trends and estimates of flows to Ethiopia. Formal flows have increased but most transfers are informal. Initiatives by the government and MFIs aim to lower costs and increase access through new services. However, lack of modern payment systems and use of informal channels pose challenges. Proposed interventions include improving the formal system, directing funds to productive uses, and facilitating skill and knowledge transfers from Ethiopians abroad.
This document outlines the agenda for the 11th University Meets Microfinance Workshop held on July 3rd-4th, 2014 at the Frankfurt School of Finance & Management. The workshop focused on value chains in agricultural and green microfinance. Over the two days, there were presentations and discussions between practitioners and students on topics such as financial services for agricultural value chains, green energy initiatives supported by microfinance, and empowering smallholder farmers through access to finance. Group sessions were moderated and included presentations from organizations such as PlaNet Finance, GIZ, and MicroEnergy International.
This document discusses a study on how microfinance can help households cope with floods in northern India. The researchers interviewed households from three different areas that are impacted by floods to different degrees. They found that households face severe negative income shocks from floods equivalent to a year's income on average. Most households only used informal financing sources like family and friends after shocks, indicating a lack of access to other financial resources. The researchers conclude there is potential for microfinance to help fill this gap in access to financing when households experience adverse flood impacts.
Remittances and Household Welfare:
A Case Study of Pakistan
by
Vaqar Ahmed, Guntur Sugiyarto, and Shikha Jha
Sustainable Development Policy Institute
Asian Development Bank
- The document analyzes the impact of remittances from the Bangladeshi diaspora on Bangladesh's economy. It investigates the channels through which remittances are transferred and their contribution to poverty reduction.
- Literature review covers topics like global remittance inflows to developing countries, Bangladesh's increasing remittance receipts over time, and key terms like remittances and diaspora.
- The study uses interviews and secondary data to examine remittance determinants, find a correlation between education/income and remittance behavior, and identify that most remittances are sent through informal hundi channels instead of banks.
- The conclusion is that migration reduces unemployment
The document discusses financing sustainable development in Africa. It outlines the Common African Position (CAP) on the post-2015 development agenda, which calls for improving domestic resource mobilization, innovative financing, and quality external financing partnerships. The document also examines Africa's economic transformation needs, including increasing agricultural productivity and revitalizing manufacturing. It analyzes trends in infrastructure financing from public-private partnerships, China, and other sources. Overall, the document emphasizes that domestic resource mobilization should be the priority and financial flows must consider broader development strategies and impacts.
Diaspora bond unlocking diaspora savings opportunities for investments in cam...Emmanuel Lao
This digital artifact highlights the importance of mobilizing the diaspora savings through "diaspora bonds" to finance development projects in a developing country like Cameroon with a growing and dynamic diaspora around the world.
1) The document discusses moving from viewing fragile situations as "fragile states" and instead focusing on "states of fragility" to acknowledge fragility as an issue that can affect any state.
2) It notes reducing poverty in fragile contexts will require building resilient institutions, as fragile states are less likely to achieve goals like the Millennium Development Goals.
3) The allocation of development assistance needs to be better targeted, as currently only a small portion goes to areas like security, justice and political reform that directly address fragility.
The document discusses evidence on the impact of International Finance Corporation (IFC) tourism investments in Latin America and the Caribbean. It finds that IFC tourism investments have contributed significantly to economic development in the region in 3 key ways:
1) IFC investments in tourism and hospitality projects have helped drive growth of the services sector and national economies in many countries in the region.
2) Resort developments supported by IFC have promoted economic development in less developed regions within countries.
3) Tourism brings substantial benefits to countries through job creation, increased tax revenues, and opportunities for small businesses, helping reduce poverty.
Foreign Aid & Public Investment in Pakistanbc080200109
The document discusses public investment and foreign aid. It defines public investment and describes different types of public investment including productive and non-productive investment. It also lists various sources of public investment such as taxes, money printing, exports, bonds/equity, remittances, and foreign aid/debt. The objective of the study is to analyze the effect of foreign aid on public investment and economic growth in Pakistan. Several literature reviews on the relationship between foreign aid, investment, and growth in other countries are also summarized.
This document summarizes key points from "The Least Developed Countries Report 2012" regarding harnessing remittances and diaspora knowledge to build productive capacities in LDCs. It finds that remittances to LDCs have grown significantly and now surpass FDI and ODA. However, costs of remitting remain high. Brain drain also affects LDCs more intensely than other countries. The report proposes policies to lower remittance costs, mobilize diaspora knowledge networks, and create a new investment scheme to transfer diaspora knowledge and invest in productive sectors.
The positive impact of fdi in many sectors of the economy that Kosovo but not...nakije.kida
This document discusses foreign direct investment (FDI) in Kosovo and its impact on various sectors of the economy as well as on living standards and the environment. It notes that while FDI has had a positive impact on many sectors, it has not significantly improved living standards or addressed all environmental concerns. The document provides background on Kosovo's economy and trends in FDI inflows in recent years. It examines factors that attract investment and sectors that have received FDI. While recognizing FDI as an important factor for development, it also argues that policies are needed to ensure sustainable development, equitable growth across regions, and protection of the environment.
The document discusses Sweden's implementation of the 2030 Agenda and the Sustainable Development Goals (SDGs). It states that all government ministers are responsible for implementing the 2030 Agenda within their policy areas. Sweden's focus areas include strengthening SDG 14 on oceans, promoting decent work, and a feminist foreign policy. A National Delegation has been appointed to support and monitor Sweden's domestic and global implementation of the Agenda. The Addis Ababa Action Agenda (AAAA) and Sweden's Policy for Global Development are connected frameworks for fulfilling the objectives of the 2030 Agenda through mobilizing resources and engaging all stakeholders.
Improving the business environment and access to finance for SMEsOECDglobal
Presentation by Ms. Kristin Schreiber, Director, COSME Programme, DG GROW, European Commission - EU financial instruments available for SMEs from the EU enlargement region, at the Launch of the SME Policy Index for the Western Balkans and Turkey 2016. 28 April 2016, OECD, Paris, France.
This document discusses foreign direct investment (FDI) in Kosovo. It provides background on Kosovo's economy and trends in FDI flows. Key points include:
- FDI continues to be important for development in Kosovo and sector restructuring/allocation of FDI is a priority.
- Major sectors that have attracted FDI are financial services, transport, real estate, energy, manufacturing, construction and mining. The largest investors are from European Union countries like Slovenia, Germany and the UK.
- Ensuring sustainable development and equitable allocation of resources, including addressing environmental concerns caused by some FDI, are important challenges.
- FDI can help development by bringing technology and skills, but also needs to avoid
Financing a Post-2015 Development FrameworkSDGsPlus
The document discusses parameters to consider in developing a post-2015 financing framework to support a new set of development goals. It argues that a two-pronged approach is needed that increases the impact of available resources through good policies and credible institutions, while also leveraging additional resources from domestic and foreign sources both public and private. Key recommendations include generating more domestic revenues, ensuring efficient public spending, promoting financial inclusion, maximizing the impact of official development assistance, and leveraging the private sector.
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
Nigeria receives most of its financing from personal remittances, which make up 72% of total receipts. Foreign direct investment is the next largest source, totaling $3.497 billion or 11% of receipts. Official development assistance is also 11% of receipts, with major donors being IDA, the United States, and United Kingdom. However, Nigeria only collects 1.483% of its GDP in tax revenue, which is far below the recommended minimum of 15%. To boost domestic financing, Nigeria needs tax, customs, and administrative reforms to increase tax collection and educate citizens on the tax process. It also needs to diversify its economy by increasing foreign direct investment and reducing reliance on remittances.
This presentation offers a brief introduction to the recently adopted Sustainable Development Goals and the financial challenges in achieving them. It also provides a general overview of the different sources of finance for development – ODA, domestic resources and private finance – and ventures into the character of each of these options. The key message of the presentation is that whichever source of finance we choose from, they should be used in the most efficient and effective way possible. The presentation needs to be viewed as a slide show as it includes audio.
The document discusses mobilizing private finance for Botswana's Economic Stimulus Package through a bond fund. It proposes a 7-10 year real estate development bond fund financed by pension and insurance funds. The bond would be fully guaranteed by the government of Botswana and tied to inflation rates to incentivize investment. Bond repayments would come from stimulus project funds, improved tax collections, and mineral revenues through improved procurement. The proposal aims to diversify the economy, create jobs, and increase consumer spending through infrastructure projects like schools, housing, and roads.
The document discusses remittance flows to Ethiopia, challenges, and initiatives to expand them. It provides background on global remittance trends and estimates of flows to Ethiopia. Formal flows have increased but most transfers are informal. Initiatives by the government and MFIs aim to lower costs and increase access through new services. However, lack of modern payment systems and use of informal channels pose challenges. Proposed interventions include improving the formal system, directing funds to productive uses, and facilitating skill and knowledge transfers from Ethiopians abroad.
This document outlines the agenda for the 11th University Meets Microfinance Workshop held on July 3rd-4th, 2014 at the Frankfurt School of Finance & Management. The workshop focused on value chains in agricultural and green microfinance. Over the two days, there were presentations and discussions between practitioners and students on topics such as financial services for agricultural value chains, green energy initiatives supported by microfinance, and empowering smallholder farmers through access to finance. Group sessions were moderated and included presentations from organizations such as PlaNet Finance, GIZ, and MicroEnergy International.
This document discusses a study on how microfinance can help households cope with floods in northern India. The researchers interviewed households from three different areas that are impacted by floods to different degrees. They found that households face severe negative income shocks from floods equivalent to a year's income on average. Most households only used informal financing sources like family and friends after shocks, indicating a lack of access to other financial resources. The researchers conclude there is potential for microfinance to help fill this gap in access to financing when households experience adverse flood impacts.
1) The document describes a guide on financial transparency best practices developed as part of an EU-funded project in Western Africa.
2) It involved capacity building for microfinance institutions in Senegal, Mali, Burkina Faso, and Benin and supported upgrading management information systems and internal controls.
3) The guide identifies ten best practices organized according to three phases of institutional development: creation, growth, and structuration.
1) An emerging issue is that traditional payment systems exclude micro and small businesses that cannot accept card payments, with 8 million micro businesses affected.
2) New technology based on mobile phones could enable the integration of micro businesses into electronic payment systems in an affordable way suited to their needs.
3) New business models and partnerships between microfinance institutions, telecom companies, banks, and government programs could activate micro businesses by adding new payment services and making technology affordable.
This document introduces the "Microfinance Plus" concept, which aims to strengthen microentrepreneurs and their economic activities through additional services beyond basic microfinance. It discusses building microentrepreneur capacities in three areas: (1) microfinance and education to develop business skills; (2) microfinance and health to improve access to healthcare; and (3) strengthening economic activities through value chain analysis and environmental protection programs. The overall goal is to promote sustainable income generation, financial autonomy, and development at the individual, family, and community levels.
This document discusses the history and evolution of microfinance and impact measurement. It traces microfinance from the 1950s-1970s when it focused on subsidizing farmers, to the 1980s-1990s when the financial systems approach grew in prominence. In the early 2000s, microfinance saw rising commercialization and interest from investors. More recently, there is new focus on social performance and randomized controlled trials to better assess impact, with studies showing some positive effects but also limitations. The document emphasizes the ongoing need for research to understand microfinance's role and impacts.
This document summarizes a presentation on the impact of interest rate regulation on microfinance institutions (MFIs) in Benin, West Africa. The presentation analyzes how interest rate ceilings in Benin affect MFIs' ability to reach profitability and sustainability, and whether it drives mission drift. The study uses data from 16 MFIs over 13 years to show that most MFIs do not respect the interest rate cap by charging various fees. It concludes that the cap prevents loan product diversification and is below market rates, hindering MFI sustainability and profitability without limiting costs to borrowers.
This document discusses various methods of inland remittance in Pakistan including demand drafts, telegraphic transfers, payment orders, security deposit receipts, mail transfers, and electronic transfers. It provides details on the general procedures for issuing each type of inland remittance instrument and how they are paid at the receiving branch. Demand drafts, telegraphic transfers, and payment orders can be issued against cash, cheque, or letter of instruction and involve completing a form, calculating fees, and depositing funds. Security deposit receipts are similar but credit a sundry deposit account instead of bills payable. Mail and electronic transfers allow transferring funds between bank branches through postal services or digital means like mobile apps.
This document discusses how technology can enhance remittances in Africa. It notes that integrating technologies like cards, internet, and mobile transfers can strengthen remittances by bringing funds into the formal financial system. However, financial institutions need to offer attractive services to low-income earners. The eTranzact platform connects banks, money transfer organizations, and recipients to enable remittances to bank accounts, cards, and mobile phones, helping to drive down costs especially in Africa and encourage financial inclusion. While technologies provide benefits, regulatory frameworks and infrastructure challenges in Africa need to be addressed to maximize their potential.
This document discusses managing consumer risks in digital financial services (DFS). It identifies eight key concerns DFS customers have including network downtime, agent liquidity issues, complex interfaces, and fraud. Five priorities are suggested for the industry to address these concerns such as improving reliability, user-friendliness, agent management, combating fraud, and improving complaint handling. The roles of regulators, development organizations, and consumer-focused groups are also outlined.
This document discusses responsible digital finance and customer service. It recommends that financial institutions implement a responsible service plan (RSP) to cover clients, agents, and staff at all points of customer interaction. The RSP should be both preventative and curative by addressing issues proactively through frontline workers like group leaders, loan officers, agents, and call center representatives. Continuous improvement is important to create better service before problems occur using the plan-do-check-act cycle. Financial institutions must also take action once aware of customer problems.
Responsible and inclusive finance aims to empower customers through fair and transparent practices. Lending decisions should consider a customer's ability to repay and avoid over-indebtedness, while also granting access to credit for underserved populations. Financial education can help customers make informed choices about products that meet their needs.
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"Introductory Presentation on Remittances" by Dominique Villeneuve, PlaNet Finance
1. 04/07/2013
at the Frankfurt School of
Finance & Management
1
WELCOME to the 10th
“University Meets Microfinance”
Workshop
Thursday, July 4th 14:30 – 16:00
Introductory Presentation on Remittances
Dominique Villeneuve, PlaNet Finance
2. Section I – General overview
2
Huge and still growing volumes…
… but be careful with statistics
Some important characteristics
Corridors
Providers
Migrants expectations
Migrants behaviour
Section II – Main issues
Section III – Existing solutions
3. 3
Definition
SECTIONI
Remittances are, roughly speaking, defined as the money flows that immigrant workers send home
to their relatives.
International migrant stock by origin and destination 1990- 2010
Source United Nations Department of Economic and Social Affairs
International migration is impacting more than 200 million people in the world (1/3 from North
to South and 1/3 from South to South)
In milions
4. 4
Huge and still growing volumes…
According to the World Bank, officially recorded remittance flows to developing countries reached
an estimated $401 billion in 2012, growing by 5.3 percent since 2011. Remittance flows are
expected to grow at an annual rate of 8.8 percent on average between 2013-2015 to reach about
$515 billion in 2015.
SECTIONI
5. 5
Huge and still growing volumes…
Total 401 billion US dollars ; source World Bank
Geographical repartition
SECTIONI
6. 6
… but be careful with statistics
Source Amount
Banque de France 2004 : remittances France – Algeria 283 million euros
Evaluation Ecorys study 1 500 million euros
Statistics World Bank : inbound remittances 2007 2 906 million US $
Statistics Rapport co-développement 2003 remittances
France Algérie
3 150 million euros
Statistics IFAD : inbound remittances 2006 5 399 million US $
Example inbound remittances : Algeria
SECTIONI
7. 7
Example : outbound remittances Switzerland 2010
Population : source office des migrations
Outbound remittances : source Worldbank
… but be careful with statistics
SECTIONI
8. 8
A key factors : Corridors
Source : The migrant expectations for remittances in the Euro-Mediterranean area ;
Study conducted by PlaNet Finance 2009
Morocco Algeria Tunisia
Turkey
Spain
France
Italy
Egypt
Libya
Albania
Greece
Example : stock of Mediterranean migrants in Southern Europe
SECTIONI
Corrido
factors
remitta
dynam
Stock o
status
system
countri
from on
anothe
9. 9
In Europe, there exists a multiplication of corridors
Source : demo.istat.itc
Source :INSEE
Total : 4 179 000
Source “International Migration and the United
Kingdom, 2010.” Report of the United Kingdom
SOPEMI
Stocks
of migrants repartition
in Europe
SECTIONI
10. 10
Some important characteristics : providers
Individuals Hawala Cash to Cash Account to Cash Account to Account
Informal
Money Transfer
Organizations (MTOs)
Banks
Posts
MFIs
>
> 80 % of formal
flows
SECTIONI
11. 11
Some important characteristics : providers by corridors
Example : Corridors France vs Morocco, Senegal,Mali & Comoros
Source : Bank African of Development
Morocco
Senegal
Mali
Comoros
SECTIONI
12. 12
Some important characteristics : migrants expectations
Source : The migrant expectations for remittances in the Euro-Mediterranean area ;
Study conducted by PlaNet Finance 2009
SECTIONI
13. 13
Some important characteristics : migrants behaviour
Source : The migrant expectations for remittances in the Euro-Mediterranean area ;
Study conducted by PlaNet Finance 2009
Cost driven
Is looking for the less expensive service
Very sensitive to fees
Women are more sensitive to costs
Convenience driven
Is looking for a cheap and easy-to-use service
Sensitive to the opening hours
Habit driven
Uses always the same service by habit
Is very sensitive to the employee that he used to work with
Prefers confidence and someone speaking in his language
Community driven
Prefers the informal channels
Has more confidence on the people he knows
Lack of real other choice than informal
SECTIONI
14. Section I – General overview
14
Section II – Main issues
Section III – Existing solutions
Formal vs informal
Prices
The last mile
What for ?
15. 15
Informal vs formal
SECTIONII
Main reasons for informal
• Costs
• Existence of a black market for the exchange rate of the currency
• No tax records
• Weakness of the banking system of the migrants country of origin
Volumes
Surveys of migrants and remittances recipients and other secondary sources suggest that informal
remittances flows, which are not included in the IMF estimation, could be equal to or exceed official
figures for Sub-Saharan Africa (Page and Plaza 2006; IFAD 2009). Central banks in some African countries,
such as Uganda, are making efforts to estimate these informal flows—through, for example, foreign
exchange transactions data and remittances beneficiaries surveys—but these efforts appear to be limited
to a few countries.
16. 16
Informal vs formal
A global trend towards more formal remittances
Example : Mali
According BCEAO statistics, formal inbound flows in Mali have been twice as much important for a three-
year period from 80 billion in 2005 FCFA to 180 billion in 2008. Meantime, the stock of migrants has just
slightly changed.
This would signify that informal flows share fell from 73 % in 2005 to 42% in 2008
Source
Etude de capitalisation des initiatives et mécanismes en matière de transferts de fonds au Mal 2010
Frédéric Ponsot Bruno Obegi
Benefits from more formal remittances
(1) as bank deposits from remittances increase, banks are able to make more loans
(2) remittances receivers who use banks can gain access to other financial products and services
(3) banks that provide remittances transfer services are able to “reach out” to unbanked recipients and
those with limited financial intermediation (Aggarwal et al, 2006). Also, in economies where the
financial system is underdeveloped, remittances made through official channels can help alleviate
credit constraints and promote growth (Giuliano and Ruiz-Arranz, 2006).
SECTIONII
18. 18
Commitments towards a decrease of remittances cost face
tough resistance
5 x 5
Commitment [#77]
“We will work to reduce the average cost of transferring remittances from 10
percent to 5 percent by 2014, contributing to release an additional 15 billion
USD per year for recipient families.”
G20 Summit Document, November 2008
According to World Bank, progress towards reducing the cost of sending remittances have paused in
2012.
SECTIONII
19. 19
The last mile
As mentioned previously, proximity with the recipient is the most
important factor for migrants to select the remittances channel
Rural areas represent a large part of remittances recipients :
in Africa, for instance IFAD estimates that 30 to 40 percent of
remittances are going to underserved rural areas
The most successful solutions will be those able to reach easily « the last
mile »
SECTIONII
20. 20
What for ?
The issue of the use of remittances is a very sensitive question because
it handles with private money and no commitment has to be addressed
to the migrants for the way their families use their remittances
The use of remittances will depend mostly on :
- Generation of migrants (1st, 2nd,…)
- Age of migrants
- Country of origin, etc
Financial literacy has been pointed out to be crucial to help the migrants
and their families for using remittances in the most appropriate way for
them.
Some remarkable works have been done in this sense by GIZ and ILO
SECTIONII
21. 21
What for ?
Example : Repartition according to the use of remittances from France in 4 corridors
Family help Housing
project
Investments
Source : African Bank of Development
SECTIONII
22. Section I – General overview
22
Section II – Main issues
Section III – Existing solutions
Suggestions made by AFD- African Bank of Development
PlaNet Finance approach
23. 23
Suggestions made by AFD- African Bank of Development
SECTIONIII
Study made by Epargne sans Frontieres for Agence Française de Développement
and African Bank of Development
Four main preconisations
Enhancement of existing offers
Promotion of « bi-bancarization »
Special care for productive investment
Use of new technologies
24. 24
Enhancement of existing offers
As the « last mile » is always a tough issue, all the solutions enabling to reach the final
recipient closer to his home will enhance the existing solutions
Either with « technological tools » : cards,..
Or by the recruitment of new agents : MFIs
example : The Postepay Gift card issued by Poste Italiane can be used to pay for purchases in Italy and abroad
wherever MasterCard® is accepted. The card is issued instantly at the time of purchase and can be loaded with
flexible denominations of up to E500.
example : The MFIs have developed very large networks close to their clients.
Depending their size and the regulatory aspects of their country they can play
an active role. For instance experiment of PAMECAS in Senegal with MTO Money Express for the corridor Italy
Senegal which developed innovative financial services for migrants and their families
SECTIONIII
25. 25
Promotion of bi-bancarization
Services of bi-bancarization aim to enable the possibility for money senders to have
access to a whole range of financial services in their country of origin
Some examples : same bank Attijariwafa Bank
Agreement between Banks Attijariwafa and la Banque Postale
Key question : the existence of bank accounts for non-residents :
for instance, there were some problems in Senegal about this issue
Some success stories especially for the corridor between Spain and Ecuador but
some limits for the obtention of a credit in the North for a project in the South
SECTIONIII
26. 26
Special care for productive investment
All the steps are crucial
Detection
Set up of
the project and training
Assistance for the
financement
Orientation – Advice for the
entrepreneur
Assistance for the realization
of the project
SECTIONIII
27. Special care for productive investment
27
Migrants Remittances Investment Local
Businesses
Salaries EmploymentMFIs
MFIs resolve the information and institutional constraints facing migrants by:
Developing and offering a financial product for migrants to invest in
Diversifying the migrants’ money across many borrowers
Providing monitoring services to the migrant-investors
Information &
financial services
Monitoring
SECTIONIII
28. 28
Use of new technologies
Channel : mobile phone - examples
Channel : internet - examples
Type Companies
Sending
countries
Receiving
countries
Product type
MTO + Telco
Western Union +
Orascom
Middle East, Asia,
Europe
Algeria, Tunisia,
Pakistan, Egypt,
Bangladesh,
Cash to Mobile
Telco Orange Côte d’Ivoire Côte d’Ivoire Mobile to Mobile
Type Companies
Sending
countries
Receiving
countries
Product type
Bank + posts La Banque Postale France 22 countries Account to cash
Bank Barclays UK India Account to account
Source : Remittances - how to shorten the long way home Gera Voorrips ING
SECTIONIII
29. 29
PlaNet Finance approach
A comprehensive approach
Promote cheap and convenient remittances
by building adequate partnerships
Foster the creation
of new financial products
fitted to the needs
of the migrants
and their families
Train migrants and their
families on financial literacy
and entrepreneurship
SECTIONIII
30. 30
Remittances Building Linkage for Development of
Migrants and their Families through Microfinance Services
Establish 6 partnerships between
remittance service providers and
microfinance institutions.
Train 700 migrants and their
families on financial literacy and
entrepreneurship.
Assist MFIs to develop 3 products
that help 500 clients per MFI save
$100 each, and 250 clients per MFI
access credit.
Objective/targets
I. Build partnerships
II. Train migrants and
their family members
III. Help MFIs offer
migrant-oriented
products
Component
5 partnerships between remittance
service providers and microfinance
institutions.
Train 1598 migrants and their families
on financial literacy and
entrepreneurship.
• 15 products developed
• 2571 clients have saved $67 each on
average (thru May)
• 2199 clients borrowed $552 on
average (total $1,300,000)
• 1230 clients have life insurance
Achievements
Target group and area: Filipino migrants’ organizations in Spain, Italy, and Dubai; and families in the
Philippines of Filipino migrants living in Spain, Italy and Dubai.
SECTIONIII
31. 31
PlaNet Finance – UPU project in Western and Central Africa
Leader Partners Associate
PlaNet Finance Union Postale
Universelle
La Poste de Côte
d’Ivoire
Campost
La Poste du Mali
SONAPOST
Le Groupe La
Poste
Improve the quality of service of International Electronic Money Order by checking the good
implementation of procedures
Provide financial literacy to migrant populations and their families in the target countries (sending and
receiving)
Extend the access by creating new points of contact in postal branches or with local shopkeepers
Develop a new offer of financial services for the partnering Posts fitted to the migrants needs
Organize and coordinate regional workshops in order to mutualize the results with neighboring
countries
SECTIONIII