Development policy needs for data on remittances

1
Development policy needs for data on remittances

• Valsa Shah
• Economic Adviser
• DFID
• v-shah_at_dfid.gov.uk
• 24 Jan 2005

2
Weakness of existing data

• Country BoP data - top down
• Contaminated
• Definition problems e.g. contain MTOs and
  banks?
• No measure on informal sector
• Aggregated
• Pro poor?
• Average value
• Frequency
• Channel

3
Use of data 1 Remittance Country Partnership
work

• Nigeria
• Ghana
• Bangladesh
• Objectives
• Improve pro poor financial access
• Reduce costs and barriers
• Improve capacity in the financial sector

4
RCP Recommendations - Government

• Payment systems
• Macro impact on receiving economy
• Encourage ID systems
• Education and awareness
• E money legislation
• Tackling competition issues

5
RCP Recommendations private sector development

• Improve rural access
• Improve IT systems investment
• Encourage corresponding agreements between banks
• Encourage private sector to provide innovative
  banking products

6
Use of data 2 Sending end (UK) financial sector

• Lack of data entry barrier
• Awareness raising of market opportunities
• Influence investment
• Encourage competition
• Improve transparency

7
What are we looking for? Household surveys

• Average value
• Volumes
• Frequency
• Method of flow
• Reasons for using method
• Formal/informal split
• Status of sender/beneficiary ID
• End user prices
• Trends over time

8
Products and price surveys(sending and receiving
countries)

• Comparison of products available
• Price comparison
• Consumer information guide
• Encourage competition and innovation between
  competitors

9
Verify statements

• Remittance beneficiaries are poor
• The poor are more likely to be users of informal
  methods
• The value of informal remittance flows is very
  significant
• There are significant numbers of illegal migrants
  sending money back