The document discusses remittances sent home by migrant workers and strategies for leveraging them for development. It notes that remittances have surpassed overseas development aid and foreign direct investment. It also provides statistics on top remittance receiving countries and discusses some challenges faced by diaspora organizations in implementing community projects in countries of origin.

1. Title Sub-title Leila Rispens-Noel, Programme Officer 2 November 2007 Migration, Remittances and Development

2. European Filipino Migrants Conference Converging Filipino Diaspora Global Initiatives for Sustainable Development November 2, 2007 Leila Rispens-Noel Programme Officer Bureau Popular Campaigning [email_address]

3. OXFAM NOVIB Oxfam Novib is a member of Oxfam International, an alliance of 12 Oxfam affiliates. In 1994, Oxfam Novib joined Oxfam International, a group of twelve independent, like-minded development organisations that are striving to achieve a more just world. The Oxfams work together with a total of 3,000 counterparts in 100 countries.

4. Contents On-going debates on migration and development Volume and impact of remittances Strategies Examples of projects Characteristics of projects Issues and challenges Criteria

5. Migration is the missing link between globalisation and development

6. United Nations International Fund for Agricultural Development (IFAD) : 2006 ODA – US$ 104 b FDI – US$ 167 b Remittances – US$ 114 b “ The more than $300 billion that some 150 million migrants sent to their families in poor countries in 2006 is now the world's largest poverty alleviation program.”

7. 2006: Top ten remittance-receiving countries Country Amount GDP Mexico US$ 24.354 b 2.9% India US$ 24.504 b 2.7% China US$ 21.075 b 0.8% Philippines US$ 14.651 b 12.5% Russian Federation US$ 13.794 b 1.4% Bangladesh US$ 8.108 b 13.1% Ukraine US$ 8.471 b 8.0% Turkey US$ 7.477 b 1.9% Vietnam US$ 6.822 b 11.2% Pakistan US$ 6.242 b 4.8%

8. Regional share of remittances Source: IFAD

9. Remittances: the poor people helping themselves 80% to 90% of remittances are spent on basic needs of recipient families such as food, clothing and shelter combined with healthcare and education 10% to 20% of remittances include a mix of formal and informal savings and investments More than 1/3 of remittances reach the rural areas In 2006, 59 developing countries have benefited from remittances flows Not a guarantee to alleviate poverty Source: Sending Money Home, IFAD

10. Impact of migration 1. Brain Drain 2. Social Cost 3. Peso appreciation 4. Use for consumption 5. Culture of Migration 6. Widens poverty in rural areas 1. Brain Gain 2. Capital gains through investments 3. Source of Foreign exchange 4. Investments on human capital (education) 5. Informal insurance for poor countries 6. Increase Credit-worthiness

11. Policy Interventions Remittances and Development Rights and gender-based perspective Promote financial literacy/financial democracy Reduce the high cost of transactions/promote competitiveness among money transfer operators/transparency Link remittances with non-banking financial institutions such as MFIs, cooperatives, and credit unions to pay remittances will increase competitiveness, reduce informality, increase competition and lower the cost of transfer Provide financial services and innovative products to senders and receivers e.g. savings and investments) Promote broad public-private partnership (e.g. 3x1 program in Mexico) Identify pressing issues, map best practice, guidelines and build a multilateral framework Leveraging remittances for development impact Capturing a share of remittances for development requires transparent and coherent migration and development policies . However, it cannot be achieved without consideration of other migrant-related issues such as respect for human rights, gender, family re-unification, integration of migrants, legal status of migrants, and eradicating the root causes of poverty.

12. Strategies to support diaspora organisations: From the margins to the mainstream Capacity building – facilitate conduct of trainings and workshops (project cycle management, proposal writing, fundamentals of microfinance, strategic planning, fund raising, financial literacy deepening knowledge and understanding of development, etc.) Technical and financial assistance (development projects in the countries of origin and in the Netherlands) Support and stimulate broad alliance building of transnational networks of migrants – national and international levels – through dialogues and meetings Influence policy making – coherency in migration and development policies through conduct of expert meetings, workshops, debates and conferences and ensure participation of migrant leaders in important conferences/meetings Financial literacy (personal finance, social investments, encourage diaspora philanthropy, link with MFIs/INAFI) Linking and learning / exchange visits (Past activities: trips to Mexico and Philippines (microfinance/remittance and Burundi, Moluccas/Indonesia, Sudan, Somalia, and Ethiopia (peace)

13. Ethiopia: DIR Founded in 2000, DIR Foundation is an Ethiopian organization which initiates projects in the Netherlands and Ethiopia. Projects funded by Oxfam Novib: - Coffee Processing Plant and housing project for prostitutes in Addis Ababa - Hiv/AIDS mainstreaming project - Housing and employment (brick production) project for ex-soldiers in Addis Ababa Partner since 1998 Number of direct beneficiaries reached: www.dirnet.nl

14. Mexico: Federación de Clubes Zacatecanos del Sur de California Tres por Uno Program – matching fund

15. Characteristics of the projects Run and managed by volunteer organizations (contributions in the form of time and skills are not measured or included in the remittance flows) Sources of funding are varied. Aside from their own contributions, funds are also raised through grants (funding agencies, schools, churches, businesses) Most projects we received are one off but there are promising ones as well; concentrate on this group without excluding the new ones (breeding ground for innovative ideas) Projects are diverse and thematic (peace building in conflict areas, Hiv/Aids, income generating, mostly targeting women and girls, but mostly on education, health and other basic services)

16. Policy Interventions Remittances and development Reduce the high cost of transactions Promote financial literacy/financial democracy Link remittances with microfinance (provide financial services and innovative products to senders and receivers) Promote broad public-private partnership (e.g. 3x1 program in Mexico, hometown associations) Identify pressing issues, map best practices, guidelines and build a multilateral framework Capturing a share of remittances for development requires transparent and coherent migration and development policies . However, it cannot be achieved without consideration of other migrant-related issues such as respect for human rights, gender, family re-unification, integration of migrants, legal status of migrants, and eradicating the root causes of poverty.

17. Issues and challenges Continuous capacity building program (capacity to manage projects) Establishing good track record including financial management (accounting system) and reporting Voluntary, limited time to focus on the project Managing international partnership is a challenge (monitoring is done only during their holidays or family visits; using internet, mobile phone to connect with partners) Sustainability Finding the right and trusted partners in countries of origin especially on productive projects (identification of possible investments, portfolio fund managers) Lack of support from the government and private sector/confidence building Peace and order situation, climate change, political and economic condition of the countries influence/determine the success and failure of the projects (risks) Collaboration among donors (donor agencies, diasporas, governments, private sector, local communities) Diverse interests , lack of unity among migrant organisations, visionary leadership

18. THANK YOU www.oxfamnovib.nl www.linkis.nl Contact: [email_address]