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Thursday, December 13, 2007
Background of the Global Policy Section
Background on Remittances
Remittances are transfers of money by foreign workers to their home countries.
(From Wikipedia) Money sent home by migrants constitutes the second largest financial inflow to many developing countries, exceeding international aid. Latest World Bank estimates are that some US$250 billion was remitted globally in 2006 and these figures are increasing by almost 30% year on year. Remittances contribute to economic growth and to the livelihoods of needy people worldwide. Moreover, remittance transfers can also promote access to financial services for the sender and recipient, thereby increasing financial and social inclusion.
Importance
Remittances are playing an increasingly large role in the economies of many countries, contributing to economic growth and to the livelihoods of needy people (though generally not the poorest of the poor). As remittance receivers often have a higher propensity to own a bank account, remittances promote access to financial services for the sender and recipient, an essential aspect of leveraging remittances to promote economic development.
The World Bank and the Bank for International Settlements have developed international standards for remittance services.[1]
In 2004 the G8 met at the Sea Island Summit and decided to take action to lower the costs for migrant workers who send money back to their friends and families in their country of origin. In light of this, various G8 government developmental organizations, such as the UK government's Department for International Development (DFID) and USAID began to look into ways in which the cost of remitting money could be lowered. One of DFID's responses was to develop a programme called 'Sending Money Home?.[2]
Recent studies by the Humanitarian Policy Group (HPG) have shown that remittances not only play an important part in many people's daily lives but are particularly important for people during crises.[3]
There is a global central repository of information and bibliography of reference materials on remittances called DRIL – the DFID Remittances Information Library. The bibliographic search site includes links to over 300 articles and has been sponsored by the UK Government’s Department for International Development (DFID). DRIL is hosted by Developing Markets Associates (DMA) and can be found at http://www.dmassocs.com/dril or http://www.moneymove.org.
History
Remittances are not a new phenomenon in the world, being a normal concomitant to migration which has ever been a part of human history.
In the 1800s, the English usage of the word was usually to refer to money sent away from England - the opposite direction to today's usual usage of the term. A "remittance man" was an exile living on money sent from home. Within Victorian British culture, this often meant the black sheep of the family who was sent away (from the UK to the Empire), and paid to stay away.
Several European countries such as Spain, Italy or Ireland have been heavily dependent on remittances received from their emigrants during the 19th and 20th centuries. In the case of Spain, remittances amounted to the 21% of all of its current account income in 1946. All of those countries created polices on remittances developed after significant research efforts in the field. For instance, Italy was the first country in the world to enact a law to protect remittances in 1901 while Spain was the first country to sign an international treaty (with Argentina in 1960) to lower the cost of the remittances received.[7]
Top remittance recipient countries
Country  | Remittances (2003–2004) | Remittances (2006–2007) |
|---|---|---|
| India | $21.7 billion | $26.9 billion |
| China | $21.3 billion | $22.52 billion |
| Mexico | $18.1 billion | $24.7 billion |
| France | $12 billion | |
| Philippines | $12 billion | |
| Pakistan | $3.9 billion | |
| Bangladesh | $3.4 billion | $ 5.97 billion |
Informational Platform Project for UNICEF and Columbia University (in conjunction with SIPA)
- To build a network utilizing technology platforms to capture informational literature, statistics, photos, etc. for both UNICEF and Columbia. This study will focus on remittances and migration.
- To develop information sharing and learn about the research occurring in the field of this subject.
- To create a common information platform and understand the dimension of policy in the field of migration and for the improvement of the status of children
- To share best practices of UNICEF and research done by Columbia University students and faculty
- To collaborate with the UN and a university institution
- UNICEF
- Columbia University
- Potential to extend to other branches of the UN(?).
- February/March 2008
- Rhea Saab
- Columbia professors, students and staff
- Columbia University Information Technology Team
- Columbia University Members
- People will have access to this network and may post information on this resource. This will be an opportunity to involve partners possibly outside of the UN and the university.
- Discuss with Columbia University members and UNICEF staff
- Brainstorm ideas for the database
- Discuss with Rhea if this will be project to be done in conjunction with outside organizations
- If needed, research grant opportunities
