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Dilip ratha
This document discusses leveraging migration, remittances, and diaspora for financing sustainable development. It notes that remittances total $440 billion globally, with $135 billion going to developing countries in Africa and Venezuela paying exorbitantly high costs of 8-12% and 20% for transfers within Africa. The document outlines monitoring remittance flows, expanding access to financial services for recipients, and developing capital market access for developing countries as areas that could help maximize development impact. It estimates that reducing costs, tapping diaspora savings and bonds, reducing migrant worker fees, and using future remittance flows as collateral could potentially mobilize over $100 billion for development.
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Dilip ratha
- 1. Leveraging Migration, Remittances andDiaspora for Financing Sustainable Development Dilip Ratha GFRD Milan June 18, 2015
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- 3. Exorbitant remittances costs 8%12% 95% Global average Africa Venezuela 20% Within Africa
- 4. • Size, corridors,channels • Counter-cyclicality • Effects on poverty, education, health, investment • Policy (costs, competition, exchange controls) 1. Monitoring, analysis, projection • Payment platforms/instruments • Clearing/settlement, capital adequacy, disclosure, cross-border arbitration • Anti-money laundering (AML/CFT) 2. Retail payment system • Deposit and saving products • Mortgage, consumer loans, microfinance • Credit history for MFI clients • Insurance products 3. Financial access for households, SMEs • Sovereign credit rating • Bonds backed by future remittances as collateral • Diaspora bonds 4. Capital market access for countries, companies Global Remittances Agenda
- 5. • Reducing remittancecosts ($30 bn) • Diaspora savings via diaspora bonds ($50 bn) • Reducing recruitment fees paid by low- skilled migrant workers ($20 bn) • Diaspora philanthropy ($10 bn) • Using future-flows as collateral ($4-$25 bn for Africa alone) $100 billion idea
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