Syndicate content

Migration and Remittances

Talking at TED Global (about a hidden force in global economics)

Dilip Ratha's picture

Chief Experience Disruptor. I stared at the name tag again – yes, that was his title. We sat down for tea, and he invited me to test the miracle berry that made lime taste like sweet candy. I ate the lime, all of it – even its thick green skin tasted deliciously sweet. “This berry could help the sweet-loving diabetics you know,” he said, lending me a few packets.  He had just given up a promotion to pursue his dreams: travel the world for 6 months, feed a few thousand people, and continue his side hobby of understanding why people are right-hand-dominant. “Does it have anything to do with the position of the heart?” I offered, lamely, hopefully. “Probably,” he said. “But that does not explain why men’s shirts have buttons on the right, and women’s, on the left.” I have since thought of several implications of being right-handed. Also as an aside, I have become more acutely aware of the clichéd two-handedness in my profession, I mean, of saying ‘on the one hand, and on the other hand.’

Weekly Wire: The Global Forum

Roxanne Bauer's picture
These are some of the views and reports relevant to our readers that caught our attention this week.

BBC Media Action’s governance research: emerging evidence and learning
BBC Media Action
Supported by a five-year grant from the UK Department for International Development to achieve governance outcomes in countries across Africa, Asia and the Middle East, this working paper shares the learning and insights our research generates as it progresses. The paper is designed to share some of the most interesting qualitative and quantitative data we have gathered at this relatively early stage in the research. It also explores the conclusions we are beginning to reach about the contexts in which we work and the impact of BBC Media Action’s programmes. Finally, it highlights what our research is, and is not, telling us.
 
The Bad News About the News
Brookings
1998, Ralph Terkowitz, a vice president of The Washington Post Co., got to know Sergey Brin and Larry Page, two young Silicon Valley entrepreneurs who were looking for backers. Terkowitz remembers paying a visit to the garage where they were working and keeping his car and driver waiting outside while he had a meeting with them about the idea that eventually became Google. An early investment in Google might have transformed the Post's financial condition, which became dire a dozen years later, by which time Google was a multi-billion dollar company. But nothing happened. “We kicked it around,” Terkowitz recalled, but the then-fat Post Co. had other irons in other fires. 
 

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.  

Migration and Development in the East Asia and Pacific Region: Potential to gain from boosting regular migration

Soonhwa Yi's picture

Remittances to EAP remain buoyant and continue to support macroeconomic stability - projected to increase by 7.0 percent to US$122 billion and to US$127 billion in 2015, as the World Bank’s Migration and Development Brief 24 (Oct 2014) reports.

While steadily declining, the cost of remittances to EAP remains close to 8 percent in 3Q2014, according to the report. Money transfer operators (MTOs) contribute to lowering the cost; and cash-to-cash transfers are likely to cost higher than cash-to-account transfers for receiving countries in the region, highlighting the importance of deepening financial inclusion of migrant families in remittance-receiving countries.

Webinar/Seminar on Migration and Remittances: Recent Developments and Outlook 2014-2017

Dilip Ratha's picture

The Migration and Remittances team at the World Bank is pleased to invite you to the following Seminar/Webinar:

Migration and Remittances: Recent Developments and Outlook 2014-2017

Monday, October 20, 2014
9:00 a.m.-10:00 a.m.
Room MC 8-100
World Bank Main Complex
1818 H Street, N.W., Washington, DC 20433

Presenter: Dilip Ratha, Lead Economist, Head of KNOMAD, Development Prospects Group, Worlld Bank

Long Absence Does Not Necessarily Kill Love

Zahid Hussain's picture



It is said short absence quickens love, long absence kills it.  This is not always true in reality. One case is remittance behavior of long-term migrants. The remittance literature argues that the amount of remittances sent by migrants to their countries of origin declines through time. Reunification of families or breakdown of family ties underpins such behavior. However, the empirical evidence is not all supportive. The passage of time does not significantly influence migrant remittance behavior. Remittances are maintained at high levels over long periods. This allays concern that economies dependent on remittances will face foreign exchange shortages and falling living standards as remittance levels fall because of reduced migration rates and decline in migrants' willingness to remit over time.

What is the Bangladesh experience?  One way to judge is to look at the remittance behavior of Bangladesh diaspora abroad. There is no reliable data on the number and location of Bangladeshi diaspora members. A recent ILO report–Reinforcing Ties: Enhancing contributions from Bangladeshi diaspora members--estimates the number of Bangladeshi migrants living permanently in the United States and Europe at around 1.2 million.

Rural jobs allow people to escape poverty; urban jobs are a ticket to the middle class

Yue Li's picture
South Asia is sometimes known as the land of extremes with opulence surrounded by poverty.

How much social mobility is there in South Asia? The intuitive answer is: very little. South Asia is home to the biggest number of poor in the world and key development outcomes – from child mortality to malnutrition – suggest that poverty is entrenched. Absence of mobility is arguably what defines the caste system, in which occupations are essentially set for individuals at birth. Not surprisingly, the prospects for people from disadvantaged backgrounds to prosper are believed to be gloomier in this part of the world.

And yet, our analysis in Addressing Inequality in South Asia, reveals that economic and occupational mobility has become substantial in the region in recent decades. In fact, it could even be comparable to that of very dynamic societies such as the United States and Vietnam. The analysis also suggests that cities support greater mobility than rural areas, and that wage employment – both formal and informal – is one of its main drivers. 

​When splitting the population into three groups—poor, vulnerable, and middle class—upward mobility within the same generation was considerable for both the poor and the vulnerable. In both Bangladesh and India, a considerable fraction of households moved above the poverty line between 2005 and 2010. Meanwhile, a sizable proportion of the poor and the vulnerable moved into the middle class. In India, households from Scheduled Castes and Scheduled Tribes – considered together – experienced upward mobility comparable to that of the rest of the population.  

Beyond Remittances: How 11 Million Migrants from the Arab World can Impact Development

Mariem Mezghenni Malouche's picture
Arne Hoel l World Bank

The Middle East and North Africa region has a large diaspora. According to the latest United Nations estimates, 11 million citizens from the MENA countries lived abroad in 2013. Many of the members of this group hold prominent positions in their adopted countries. They have the potential to contribute to the development of industries in their countries of origin. Executives in multinationals can influence the choice of locations abroad in increasingly defragmented supply-chains. This is especially relevant for members of the diaspora.  Seddik Belyamani, originally from Morocco, was Boeing's top airplane salesman, and was instrumental in converting an initial push-back by Boeing’s executives into an interest and a first mover investment in Morocco. 

Weekly Wire: The Global Forum

Roxanne Bauer's picture

These are some of the views and reports relevant to our readers that caught our attention this week.

Focus on Migration: Rising migration is a myth
SciDevNet
Hardly a week goes by without media coverage of the fears, in developed nations, that immigrants from poorer countries are overwhelming them. A recent story in the British newspaper The Telegraph — describing how open borders, the “ravages of globalisation”, and a welfare economy have given rise to social resentment — is just one example. [1] Such narratives tap into the popular myth that globalisation has led to a one-way, free flow of migrants from poorer countries — making migration a political issue almost everywhere in the industrialised world.

Facebook is more important to news distribution than you think, and journalists are freaked out
Poynter
Facebook’s Liz Heron answered for a litany of perceived sins and slights last week during a conversation with The Atlantic’s Alexis Madrigal and attendees at the Online News Association conference in Chicago. Journalists are anxious about being left out of the loop about how Facebook works, and they want answers. Does Facebook play favorites in the News Feed Algorithm? Nope, according to Heron, the company’s head of news partnerships. In other words: If you want to be successful on Facebook, don’t get caught up in the nuts and bolts of what it favors or disfavors about posts (and it won’t tell you much about those nuts and bolts anyway, so that works out).


Pages