Transcript Slide 0
Migrant remittances in Europe and Central Asia Recent trends and global experiences in remittance data collection Sanket Mohapatra (with D. Ratha, J. Irving and A. Silwal) Development Prospects Group World Bank ECA Migration and Remittances Peer Assisted Learning Network (MiRPAL) Washington DC March 26, 2010 Outline Recent trends in migration and remittances in Europe and Central Asia ◦ ◦ Intra-regional and out of region migration Impact of financial crisis on remittance flows Improving remittance data collection – global experiences ◦ ◦ Findings from global survey of central banks on collection of remittances data Recent policy initiatives to improve remittance data collection Global experiences in data collection of remittances Draws on findings from global survey of central banks on migrant remittances - by Dilip Ratha, Jacqueline Irving, and Sanket Mohapatra (forthcoming as World Bank Working Paper) One of the aims of global survey to gain a better understanding of how central banks collect data and other information on migrant remittance flows. Survey questions on data collection Which institutions collect data? What are the methods? What RSPs are covered? How are these changing? How are RSPs regulated? How does regulation affect costs? What factors affect the choice of remittance channel? Inflows and outflows of remittances Two main versions: focusing on inflows and outflows Sent to 176 countries worldwide 112 countries have submitted survey responses: Of which [XX] countries are in Europe and Central Asia Remittance receiving countries Remittance source countries Inflows are better monitored than outflows Almost all (96%) remittance-receiving countries collect data, vs. 84% of remittancesending countries Data collection has been going on longer for inflows than for outflows: 72% of remittance-receiving countries collecting data for more than 5 years 55% of remittance-sending countries collecting data for more than 5 years Under-recording of remittances Lower priority given to recording remittance outflows by many migrant host countries— particularly where remittances are small relative to GDP ◦ Russian Federation a notable exception Use of cross-border data reporting thresholds Many central banks until recently relied on data reported solely by banks; more nonbank RSPs are beginning to report data Remittances hand carried by migrants and others visiting migrants’ home countries In-kind remittances Some lack of coordination in data collection Within the same institution Across national institutions Between counterpart national institutions, including for major remittance corridors Data collection/estimates of informal remittances 42% of the remittance-receiving countries said they collect data on informal remittances 70% of the remittance-receiving countries that collect these data reported doing so with regularity But a considerably fewer number of remittancereceiving countries (17%) provided actual informal flows data estimates Only two of the remittance-sending countries (Germany and Russia) indicated that they collect data on informal remittances Methods of estimating informal flows Propensity to remit from surveys 47 Share in foreign exchange transactions 27 Cash carried at entry points 13 Cash carried across borders by courrier/transport companies 7 Foreign embassies on labour permits 7 Expert estimates 3 Information from newspapers 3 Number of workers abroad 3 Errors & omissions in BoP 3 0 10 20 30 Percent of central banks 40 50 Regulation of RSPs is weak in remittancereceiving countries Many new market entrants’ remittance activities are not regulated: ◦ ◦ ◦ ◦ 39% of post offices 37% of MFIs 25% of mobile phone service providers 23% of MTOs Better statistics and studies are cited as areas needing attention Better statistics & studies on migrants 63 Better statistics on remittances 61 Delivery of remittances to remote areas 49 New remittance technologies/products 47 Increased competition among RSPs Remittancereceiving countries 42 Financial integrity issues 28 0 20 40 60 80 % of central banks citing area as needing improvement to increase efficiency, security of transfer s High cost was cited as top factor inhibiting use of formal channels Remittance-receiving countries High cost 57 Recipient's lack of access to bank accounts 50 Mistrust/lack of info. on electronic transfers 50 No bank branch near beneficiary 49 Sender's lack of valid ID 42 Mistrust of formal financial institutions 29 Exchange controls 15 0 20 40 % of central banks 60 Policy recommendations – improving data collection Improve procedures for remittances data collection and monitoring, including by compiling and monitoring crossborder remittance flows data at higher frequencies and disaggregated by source country where possible. For many remittance-receiving countries, revise data compilation methods to better distinguish remittance inflows from other capital inflows. As new RSP entrants emerge, it becomes increasingly important for countries to give priority to determining an effective means of taking into account these new channels and technologies in data collection and monitoring. Policy recommendations - improving coordination within and across countries Improve coordination in data monitoring, with more systematic data and information exchange, better communication, and more effective division of labor to avoid duplication of efforts. Better coordination in data collection both across different institutions and between different divisions within the same institution. For major remittance corridors, developing some means of regular, more systematic data and information sharing and exchange on migrant remittance flows between counterpart national institutions. One of four thematic areas of Global Remittances Working Group (GRWG) is on improving remittances data Technical meeting in June 2009, Washington DC (follow-up meeting in Rome in November 2009). Technical working group will meet periodically to: ◦ Promote sharing of detailed metadata about country practices ◦ Develop web-based mechanism for controlled exchange of “bilateral” data, to help countries examine asymmetries ◦ Provide global coordination mechanism for regional initiatives (such as the CEMLA program) ◦ Promote country capacity building and technical assistance Improving data collection efforts through household/labor force surveys ◦ Using household surveys to improve Balance of Payments statistics ◦ Compilation of household surveys containing migration and remittance questions/modules Thematic Area 1 leader: Neil Fantom, Development Data Group, World Bank.