2005年-世界发展银行全球_Migrant_Labor_Remittances_in_the_South_Asia_Region_70页_14mb

Summary of Migrant Labor Remittances in the South Asia Region

Core Content

This document provides an in-depth analysis of the role and impact of migrant labor remittances in the South Asia region, focusing on Bangladesh, India, Pakistan, and Sri Lanka. It outlines the development implications of remittances, the public and formal financial infrastructure supporting them, and the challenges and opportunities presented by the informal remittance sector. The study emphasizes the need for policy reforms and infrastructure improvements to enhance the development impact of remittances.

Main Points

1. Remittance Trends in South Asia

• The South Asia region has seen a significant increase in remittances over the past decade.
• As of the end of 2003, Bangladesh, India, Pakistan, and Sri Lanka were among the top 20 recipients of remittances, with total inflows of approximately US$3.2 billion, US$17.4 billion, US$3.9 billion, and US$1.3 billion respectively.
• Remittances have grown despite challenges such as weak labor markets and tightened border controls post-9/11.
• Remittances represent the second-largest financial flow to developing countries after foreign direct investment (FDI), surpassing net official development assistance (ODA) by more than double.

2. Development Impact of Remittances

• Remittances have the potential to reduce poverty, improve family welfare, and stimulate local economic development.
• The paper uses a growth-poverty model to show that total remittances (official and unofficial) reduce poverty levels in South Asia.
• A 10% increase in total remittances is associated with a 0.9% decline in poverty levels.
• However, the specific impact of remittances on consumption vs. investment, and on different types of productive activities, remains unclear due to methodological challenges.
• Remittance income is fungible, meaning it can be used for any purpose, making it difficult to track its specific economic effects.

3. Public Infrastructure for Remittances

• All four countries have established public institutions and policies to support migration and remittances.
• Key public institutions include:
  • Bangladesh: Bureau of Manpower Employment and Training (BMET)
  • India: Emigration Act of 1983
  • Pakistan: Emigration Ordinance of 1979
  • Sri Lanka: Bureau of Foreign Employment
• These institutions provide pre- and post-migration services such as training, visa processing, and support for returnees.
• However, they face challenges such as limited resources, inefficiencies, and persistent bureaucratic perceptions.

4. Formal Financial Infrastructure for Remittances

• State Banks:
  • State banks in South Asia have extensive branch networks and have historically dominated the official remittances business.
  • They are well-positioned to improve remittance services, but their effectiveness and efficiency remain areas for improvement.
• Foreign Banks:
  • Have been slower to enter the remittance market due to limited branch networks and regulatory concerns.
  • They are more likely to serve higher-income migrants such as professionals.
• Local Banks:
  • Have been leading in the remittance service market, investing in technologies like ATMs, Internet banking, and telebanking.
  • The number of ATMs in the region has increased, but their use for remittances is still limited.
• Money Service Businesses (MSBs):
  • Include licensed entities such as Western Union and Money Gram, as well as internet-based platforms like e-exchange and Remit2India.
  • These businesses offer a competitive alternative to formal banking institutions, especially for low-cost and fast remittances.

5. Informal Financial Sector Infrastructure for Remittances

• Informal systems such as courier services, in-kind remittances, and hawala systems have a long history in the region.
• These systems are favored for their speed, low cost, convenience, and anonymity.
• Hawala is particularly notable, with roots in traditional trade and used for both legal and illegal migrants.
• Informal systems are often associated with security risks such as money laundering and terrorist financing.
• Some countries have imposed restrictions or bans on informal systems due to these concerns.

6. Conclusion and Recommendations

• The remittance industry is a crucial source of external finance for South Asian countries.
• To maximize the development impact of remittances, the following recommendations are proposed:
  • Shared payments systems platforms: Enhance connectivity between state and private financial institutions to allow remittances to be received from any branch or ATM.
  • Public-private partnerships: Foster collaboration to improve the efficiency and reach of remittance services.
  • Cross-selling: Encourage formal financial institutions to offer complementary services to remittance recipients, such as loans and savings accounts.
  • Regulatory reforms: Reduce transaction costs and bureaucracy to make formal remittance systems more competitive and transparent.

Key Information

• Remittances as a financial flow: They are the second-largest financial inflow to developing countries after FDI.
• Impact on poverty: The study suggests that remittances can reduce poverty, particularly when they are directed towards productive investments.
• Challenges:
  • Fungibility of remittance income complicates impact analysis.
  • High transaction costs and bureaucratic inefficiencies hinder the effectiveness of formal remittance systems.
  • Informal systems are popular due to their speed and convenience but pose security risks.
• Opportunities:
  • Technology investments by local banks can enhance remittance efficiency.
  • Public infrastructure can be improved to better support migrants and their families.
  • Policy reforms can promote transparency and reduce reliance on informal channels.

Structure

• Executive Summary: Highlights key trends and data.
• Chapter 2: Analyzes the development impact of remittances.
• Chapter 3: Reviews the public infrastructure for remittances.
• Chapter 4: Examines formal financial institutions.
• Chapter 5: Discusses the informal financial sector.
• Chapter 6: Concludes with policy recommendations.

Final Note

This study serves as a platform for further research and policy discussion, aiming to highlight the potential of remittances for development and the need for improved infrastructure and regulatory frameworks.