Issue paper: Definition of remittances

1
Issue paperDefinition of remittances

• Technical Subgroup on
• Movement of Persons Mode 4
• (New York, 22 - 24 February 2006)

2
Overview

• Background
• Personal transfers
• Personal remittances
• Total remittances

3
Background

• TSG on Movement of Persons-Mode 4 submitted its
  recommendations to BOPCOM and the AEG
• Recommendations bring BPM6 flows in line with
  1993 SNA using items in the Annotated Outline
• AEG and BOPCOM conclusions diverge slightly
• What next?
• Reconcile the differences and resubmit to AEG
  and BOPCOM

4
Personal transfers

• Definition
• Personal transfers consist of all current
  transfers in cash or in kind made, or received,
  by resident households to or from other
  non-resident households
• BOPCOM Agree with definition. Workers
  remittances supplementary item to maintain time
  series.
• AEG Suggests possible inclusion of capital
  transfers
• Question 1

5
Personal remittances

• Definition
• Personal remittances compensation of employees
  social contributions personal transfers
  capital transfers between households
• Essentially household-to-household transfers
• Excludes non-life insurance premiums and claims,
  investment income

6
Personal remittances (Conted)

• BOPCOM Agree with definition and netting COE
  of social contribution, taxes on income, travel
  and transportation costs related to short term
  employment.
• Should personal remittances (netting COE) be
  part of the standard presentation?
• Should capital transfers be included in the
  definition?

7
Personal remittances (Conted)

• AEG Favors broader definition, proxy to
  disposable income from abroad
• Personal remittances social benefits
• Social benefits is likely to be an item of the
  standard presentation.
• Should the new concept of disposable income from
  abroad be retained in addition to personal
  remittances?

8
Total remittances

• Definition
• Total remittances personal remittances social
  benefits current transfers to NPISHs
• BOPCOM Agree with above definition.
• AEG Agree but raise issue of whether to include
  capital transfers.
• Should current transfers to NPISHs be considered
  part of the standard presentation?
• Should capital transfers to NPISHs be included in
  the definition?

9
Suggested Standard Components related to
Remittances in BPM6 (AO)
10
Questions to the TSG

• What is the opinion of the TSG on whether to
  include capital transfers between resident and
  non-resident households in the definition of
  personal transfers in para 6?
• Does the TSG agree with the definition of
  personal remittances as a household-to-household
  transfer defined as in para 12?
• Is the TSG in favour of netting compensation of
  employees as part of the BOP standard
  presentation?
• Does the TSG agree with the inclusion of capital
  transfers between households in the definition of
  personal remittances? Should capital transfers
  to/from households be a BOP standard component or
  a supplementary item?

11
Questions to the TSG (Conted)

• Does the TSG agree with the definition of
  disposable income from abroad defined as the sum
  of personal remittances and social benefits?
• Does the TSG agree with the definition of total
  remittances as defined in para 22?
• What is the opinion of the TSG on whether to
  include capital transfers to NPISHs in the
  definition of total remittances?
• If in favour, should capital transfers to NPISHs
  be a BOP standard component or a supplementary
  item?