Syndicate content

Remittance

Are progressive refugee laws sufficient to ensure self-reliance for refugees? Insights from Uganda

Varalakshmi Vemuru's picture
Uganda’s refugee laws are among the most progressive in the world. As the third largest host country in Africa with over 568,000 refugees, Uganda’s approach of giving refugees the right to work, freedom of movement and access to social services among others, has allowed refugees to positively contribute to their own and Uganda’s economic and social development. To understand better the economic impacts of these progressive policies, the World Bank along with UNHCR and Government of Uganda undertook a study on Uganda’s Progressive Approach to Refugee Management
 
We observed that over 78 percent of refugees in rural settlements, where they receive agricultural land, are engaged in agricultural activities compared to 5 percent in urban areas. Crop surpluses attract Ugandan traders to the refugee settlements, operating as a direct supply chain for sale of agriculture produce but also supply of agriculture inputs like fertilizers and seeds.
 
Refugee farmer in Nakivale settlement area, Uganda   (Photo: UNHCR)


However, about 66 percent of respondents reported that local traders use faulty scales when weighing produce, which shortchanges them. Seventy percent decried the extremely low prices offered by local traders for produce, with implications for the ability and timing of refugees to become self-reliant. This was made worse by the significant losses in quality and quantity of agriculture produce due to poor harvest handling techniques and inadequate storage facilities, and surpluses were sold immediately after harvest at the lowest point in the price cycle. This shows that while refugees have land to cultivate, they are unable to realize the potential due to lack of technical, infrastructural and marketing support, contributing to food insecurity and under nutrition among smallholder farming refugee families, especially during lean seasons.
 
Business enterprises such as bars, hair dressing, milling, transportation, money transfers, and retail are run by refugees. Twenty-eight percent of female refugees are involved in agriculture, trade, or are self-employed; their participation in the formal sector is low—only 9 percent. Initiatives such as Community Savings Groups and women savings and credit groups have provided female refugees with seed money to start businesses. There is reportedly some level of gender discrimination with respect to access to land, credit, employment, and self-employment opportunities.  
 
We observed that almost 43 percent of the refugees are actively engaged in the labor market of their host communities: 12 percent in the formal sector and 31 percent self-employed. However, refugees expressed constraints accessing formal employment both in urban areas and rural settlements, relating to unfamiliarity with the language, legal issues, poor interview skills, discrimination, and a lack of relevant documents. Refugees are mainly engaged in occupations that provide little income, social protection, or job security.
 
Refugee settlement areas have attracted the attention of Ugandan private enterprises, such as the Ugandan telecom companies, which launched several initiatives aimed at targeting refugee users of SMS banking and transfer services. For example, Orange Uganda Limited, a provider of telecommunication and Internet services in Uganda, invested in a large radio tower in the Nakivale settlement to promote its "Orange money" services. In Rwamwanja and Adjumani, a number of refugees operate as mobile money unit agents providing employment for them, while facilitating other refugees in accessing remittances from their relatives and friends within or outside the country. This mobile money is hugely helpful to refugees trying to meet expenses, including school fees for their children.
 
But in Uganda, and across the rest of the Horn of Africa, refugee camps and settlements are located in areas where the host communities are among the most underserved, with significant development deficits of their own. The majority of refugee settlements in Uganda are in the relatively stable north, though it has communities still in a state of latent conflict, driven by new and long-standing grievances, poverty, perception of marginalization, competition over national resources, and societal fracture as legacies of decades of violent conflict. The region also has high levels of poverty and youth unemployment which poses challenges to refugee efforts at self-reliance.
 
This got us thinking about a couple of important questions: "Are progressive refugee laws and policies sufficient to ensure self-reliance for refugees? What insights does this provide to the range of organizations including UNHCR and NGOs engaged in advocacy efforts aimed at more progressive refugee laws and policies?"
 
We believe that progressive refugee laws that guarantee freedom of movement and right to work and own property are critical for economic self-reliance of refugees, without which it would be an impossibility. However, the Ugandan experience also tells us that while refugees have engaged in economic activities and employment, they haven’t all achieved self-reliance and many remain aid dependent. For us an important learning is that only when progressive refugee laws are complemented by significant developmental investments in the host communities can refugees have a real shot at self-reliance, benefitting from the attendant reduction in poverty, increase in quality of basic services, better infrastructure and economic opportunities.
 
We see a huge opportunity in Uganda with the recent government-led efforts to address the development challenges of settlements that are home to locals and refugees with the inclusion of the Settlement Transformative Agenda (STA) as part of National Development Plan II (NDP II 2015/16–2019/20). The STA aims to promote social and economic development in the refugee hosting areas for both locals and refugee communities in partnership with the UN agencies in Uganda, the World Bank and other stakeholders. The World Bank is supporting this effort through the Development Response to Displacement Impacts Project (DRDIP) in Uganda, which will help improve access to basic social services, expand economic opportunities, and enhance environmental management for communities hosting refugees in Adjumani, Arua, Isingiro and Kyriandongo districts.
 

In 2015 the cost of sending remittances to Central America and the Dominican Republic decreased

During 2015 the cost of sending remittances to Central America and the Dominican Republic was reduced.  This result, obtained from the database of Envía CentroAmérica, is a positive one as these countries are major recipients of remittances from abroad.  In fact, four of them -Guatemala, El Salvador, Honduras and the Dominican Republic - stand out among the top 25 emerging economies recipients of international remittances.

Why low oil prices are also bad news for the poor in Central Asia

Aurelien Kruse's picture
Trade & remittancesThe conventional wisdom is that low world prices for oil only hurt rich exporting countries, while generating a windfall for poor net importer economies.

However, in Central Asia, the story is more complicated. This is because the region’s poorer countries, Tajikistan and Kyrgyzstan, depend critically on Russia through trade and remittances.

Falling remittances, reflecting the weakness of the Russian Ruble

According to just-released Russian Central Bank data, outward remittances from Russia fell sharply in the first half of the year, in USD terms. In the first six months of 2015 (relative to the same time in 2014) private transfers from Russia to Tajikistan and Kyrgyzstan are reported to have fallen by over 45% and 30% respectively. While less exposed, Uzbekistan has experienced a loss of even greater magnitude: -48%.

Getting SmaRT about Reducing Remittances Costs

Gloria M. Grandolini's picture



When a Moroccan fruit-seller closes his stand each evening at the Porta Palazzo market in Turin, Italy, he thinks about how much money he made that day, how much he can send to his family back in Morocco that week, how much it will cost to send that money, and how many Dirhams his family will receive.

​Remittance Markets: More court cases and higher costs due to Anti Money Laundering and Countering Financing of Terrorism (AML/CFT) Regulations

Sonia Plaza's picture
Last October, I wrote a blog on the closing of bank accounts of money transfer operators in Australia.  I reported that “Westpac would close the bank accounts of MTOs serving Somalia by the end of November.”

Closing of bank accounts of money transfer operators (MTOs) is raising remittance costs

Sonia Plaza's picture

As I mentioned in my previous blog, a renewed focus on Anti Money Laundering and Combatting the Financing of Terrorism (AML-CFT) regulations in Australia, the UK, and in the USA are impacting banks and MTOs.

Three effects on the remittance markets are observed. First, Banks stopped offering low cost remittance services. Second, banks closed accounts of MTOs. Two major banks, the Commonwealth Bank and the National Australia Bank, have closed already the accounts of MTOs in Australia. Recently, Westpac announced that it will close the bank accounts of MTOs serving Somalia by the end of this month. And third, small MTOs also closed since they could not any longer operate without bank accounts.  

International Remittances and Financial Inclusion in Sub-Saharan Africa

Maria Soledad Martinez Peria's picture

Remittances to Sub-Saharan Africa (SSA) have increased steadily in recent decades and are estimated to have reached about $32 billion in 2013.  Though  studies have shown that remittances can affect aggregate financial development in SSA — as measured by the share of deposits or M2 to GDP (Gupta et al. 2009), to my knowledge there is no evidence for this region on the impact of remittances on household financial inclusion defined as the use of financial services. This question is important because there is growing evidence that financial inclusion can have significant beneficial effects for households and individuals. In particular, the literature has found that providing individuals access to savings instruments increases savings, female empowerment, productive investment, and consumption.  Furthermore, the topic of financial inclusion has gained importance among international bodies. In May 2013, the UN High-Level Panel presented the recommendations for post-2015 UN Development Goals, which included universal access to financial services as a critical enabler for job creation and equitable growth. In September 2013, the G20 reaffirmed its commitment to financial inclusion as part of its development agenda.

Remittances: a Reconstruction and Development Tool

Soheyla Mahmoudi's picture

 a reconstruction and development tool © Gates Foundation

In post conflict countries, those who have made it out of the country are keenly aware that the livelihoods of those left behind vitally depend on remittance transfers. While concerns have been expressed about the possibility that remittances may stoke conflict, the majority view is that Diaspora support from abroad can contribute to democracy. It has been clearly established that private remittances are of central importance for restoring stability by enhancing human security in strife-torn societies. As in much of Sub-Saharan Africa, due to the predominantly informal nature of remittance delivery mechanisms, the magnitude of remittances to the economies of these regions has been under-estimated.

When Robots Attack!

Tanya Gupta's picture

Robots have been a part of our mythology for thousands of years, the emphasis alternating between their positive transformative power over human society and acting as agents of great destruction.  Our image of robots has been shaped to a large extent by Hollywood and literature.  Celluloid robots in Star Wars, 2001 Space Odyssey, Robocop, Star Trek and many of Isaac Asimov’s novels have become a part of the human story.  Off-celluloid, robots have been helping our society in concrete ways (for example police work (bomb disposal), infrastructure projects etc.).  However when Watson won Jeopardy it brought artificial intelligence and robotics a new kind of attention.  People started to wonder if robots could replace humans.  When we think of robots we think of self driven cars, household robots or even warrior robots.  However, in our view, the influence of robots and Artificial Intelligence (AI) is more subtle and their presence more ubiquitous than one would think. One such impacted sector is the agriculture sector (in the US) which is on the cusp of a massive transformation, as it moves from mechanization to automation. When rolled out and commercialized (soon) this massive scale of automation will have a significant impact on US farming and on immigration for sure.  But does this also impact the development landscape? If so how?

Agricultural robotic systems have been implemented in fruit and vegetable harvesting, greenhouses and nurseries. Harvest Automation, for example, has developed the the HV-100, a 90-pound robot for commercial nurseries that can pick up and rearrange potted plants. There are quite a few silicon valley startups that are contributing to this revolution in the region known as “America’s Salad Bowl”, around Salinas Valley. California, where Salinas Valley is located, produced $1.6 billion dollars worth of lettuce in 2010 and 70%+ of all lettuce grown in America. Lettuce Bot, a new robot developed by Stanford engineers Jorge Peraud and Lee Redden, both from farming families from Peru and Nebraska, can “produce more lettuce plants than doing it any other way” (Yahoo Finance).  Lettuce Bot’s innovation is that while attached to a tractor, it takes pictures of passing plants and compares these to a database. When the weed or a lettuce head that is too close to another one is identified, a concentrated dose of fertiliser is sprayed. A close shot of fertilizer kills the errant weed or lettuce head but actually feeds the further off crops at the same time.

Get the Conditions Right for Remittances to Matter

Zahid Hussain's picture

Recent evidence suggests that remittances have a positive impact on economic growth. This post will examine evidence based on an international panel data set that captures the surge in migration and remittances observed during 2006-09. The dataset includes 70 countries spanning from 1990 to 2009. This to our knowledge is the most recent data set that has been used in empirical remittance work. The recent effort of countries to decrease money laundering, use of improved technology and decrease in transaction costs is leading to a decrease in the unofficial portion of remittances. There has also been a surge in migration and remittances in the last half of the past decade. Thus this dataset should more comprehensively capture the growth impact of remittances compared to previous studies. Different models used to calculate the impact of remittances on growth are detailed in the report titled Bangladesh: Towards Accelerated, Inclusive and Sustainable Growth—Opportunities and Challenges, Volume II, Main Report, published in June 2012.

The impact of remittances on per capita GDP growth is economically significant


Pages