Migration and Remittances
I attended the FfD Conference where the Addis Ababa Action Agenda (AAAA) was adopted. Migration and remittances were positively included in the outcome document. However, it will be important to ensure policy coherence and alignment on what have been adopted in Addis and what will be adopted in the SDGs.
How can financial inclusion and financial integrity policies complement each other? That question was addressed in a report recently released looking at the state of Ethiopia’s anti-money laundering/combating the financing of terrorism (AML/CFT) framework.
The assessment was conducted by a World Bank Group team of experts and published by the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG). This is the first assessment of a developing country to be published that uses the revised 2012 Financial Action Task Force (FATF) standards.
Ethiopia’s compliance with the international standards on AML/CFT had never been assessed before, and this report sheds light on the functioning of a unique and vibrant economy in Africa. In addition, this is the first AML/CFT assessment to highlight the connection between financial inclusion and financial integrity policies.
As noted in an earlier blog post, entitled "The Royal Stamp of Inclusion," the FATF has confirmed that financial inclusion and financial integrity are mutually reinforcing public-policy objectives. The revised FATF standards have a more explicit focus on the risk-based approach in implementing an AML/CFT framework. This approach allows for the identification of lower risk scenarios and the application of simplified AML/CFT measures in certain areas (primarily customer due diligence, or CDD).
The Ethiopia assessment notes that only about 28 percent of the population is served by the formal financial system – leaving 72 percent of the population dependent on cash or informal financial service providers. The Ethiopian government has identified the expansion of formal financial services as a national priority, through its “Growth and Transformation Plan” and the “Ethiopian Financial Inclusion Project.”
The assessment makes suggestions as to how the Ethiopian authorities can “link up” the policies of inclusion and integrity – for example, by allowing for simplified customer due diligence processes, and by providing guidance to financial institutions on the issue.
Delta regions constitute only 5% of the land area but are home to more than 500 million people. The proportion of deltas susceptible to flooding is projected to further increase, thus affecting negatively the livelihoods of local populations, in particular farmer communities.
Recently, the International Council for Science (ICSU) endorsed the Global Sustainable Deltas Initiative (SD2015). The objective of this initiative is to bring attention to the importance and vulnerabilities of delta regions worldwide. To this aim, the University of Minnesota-led Belmont Forum DELTAS project is working to create a global vision for deltas through scientific integration, collection and sharing of data and stakeholder engagement.
Goals (SDGs), now is the time to consider these delta specific challenges in a broader context.
The International Conference: Harnessing Migration, Remittances and Diaspora Contributions for Financing Sustainable Development organized by the Global Migration Group (GMG) will be held next Tuesday and Wednesday May 26-27.
We will stream live to viewers around the globe on the UN Web TV website at: http://webtv.un.org.
The hashtag for the conference is #GMGconference. Use this to refer to the event, make your views known and get the latest discussions and comments from the conference.
Saudi Arabia hosts the largest number of migrants in the Gulf region. The country is the second largest remittance sender after the USA. A new Saudization program since 2011, the so-called “Nitaqat program”, seeks to increase the number of Saudi nationals employed in the private sector. Will this have an impact on migrants and remittance outflows from Saudi Arabia?
The human tragedy of thousands of asylum seekers floundering—and dying--in the Mediterranean highlights an unprecedented global challenge for the 21st century. “In terms of migrants and refugees, nothing has been seen like this since World War Two“, says Leonard Doyle, spokesman for the International Organization for Migrants (IMO). Globally there were estimated to be 16.7 million refugees and 34 million Internally Displaced People (IDPS) at the end of 2013. The conflicts in Iraq, Syria, Libya and Yemen alone have created o some 15 million refugees and IDPs. The numbers are growing almost on a daily basis. Just in the past few weeks, the fighting in Yemen has displaced another 150,000 while fighting in Iraq’s Ramadi has added another 114,000 to Iraq’s total displaced of around 3 million refugees and IDPs.