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East Asia and Pacific

Remittances to developing countries decline for an unprecedented 2nd year in a row

Dilip Ratha's picture
We just launched the latest edition of the Migration and Development Brief and an accompanying Press Release.
 
Remittances to developing countries decreased by 2.4 percent to an estimated $429 billion in 2016. This is the second consecutive year that remittances have declined. Such a trend has not been seen in the last 30 years. Even during the global financial crisis, remittances contracted only during 2009, bouncing back in the following year.

India introduces pre-departure orientation for migrant workers

T.L.S. Bhaskar's picture
All holders of Indian passports, whose educational qualification is below Matric/X Class (the equivalent of 10th grade in the American system) have a notation ‘Emigration Check Required (ECR)’ stamped in their passports. Under the Emigration Act of 1983, they are required to obtain an Emigration Clearance (EC) while migrating to 18 notified countries[i] for employment/work.

Trends in Remittances, 2016: A New Normal of Slow Growth

Dilip Ratha's picture
Against a backdrop of tepid global growth, remittance flows to low and middle income countries (LMICs) seem to have entered a “new normal” of slow growth. In 2016, remittance flows to LMICs are projected to reach $442 billion, marking an increase of 0.8 percent over 2015 (figure 1 and table 1). The modest recovery in 2016 is largely driven by the increase in remittance flows to Latin America and the Caribbean on the back of a stronger economy in the United States; by contrast remittance flows to all other developing regions either declined or recorded a deceleration in growth.  

I am a migrant

Jim Yong Kim's picture

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​In 1964, I came to the United States from South Korea, then an extremely poor developing country that most experts, including those at the World Bank, had written off as having little hope for economic growth.

My family moved to Texas, and later to Iowa. I was just 5 years old when we arrived, and my brother, sister, and I spoke no English. Most of our neighbors and classmates had never seen an Asian before. I felt like a resident alien in every sense of the term.

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.

Equal pay for equal work for migrant workers?

Sanket Mohapatra's picture

The recent negotiations between Philippines and Saudi Arabia about the minimum living wages for migrant workers have resulted in a stalemate. Philippines is demanding a minimum wage of $400 per month for its workers, while Saudi Arabia is willing to stipulate a minimum wage of $200 per month. Saudi Arabia stopped processing contracts of Filipino workers in March, recently the Philippines has said that it will not send Filipino maids to Saudi Arabia until the dispute is resolved. Saudi Arabia hosts 1.2 million Filipino migrants and accounts for nearly 300,000 overseas deployments annually, while the Philippines receives $1.5 billion annually in remittances from Saudi Arabia. Thus, this wage dispute could lead to loss of employment opportunities for Filipinos, involve cost of reintegrating returning workers, and a reduction in remittance flows -- all of which could adversely impact the Philippine economy. 

Is it possible to send remittances to North Korea?

Sonia Plaza's picture

I participated in a panel on Informal Markets and Peacebuilding in North Korea at the United States Institute of Pace last Tuesday where we discussed remittances. There is no data available on how much remittance North Korea receives since the country does not publish remittance statistics. 

However, remittances are being sent from South Korea and China through informal channels (hand carried to the border by informal operators or wired). According to the Ministry of Unification in Seoul, North Koreans living in Seoul remit around 10 million dollars per year. Other estimates indicate that the annual amount is within the range of $5-$15 million per year.

First round of seasonal workers finishes in Australia

Tomas Martin Ernst's picture

I've just returned from country Australia evaluating the impact of one of the World Bank's (WB) recent development programs in the region. A WB initiative on the ground in Australia? What is the relationship between country Australia and the Bank's mandate of a world free of poverty?

Photo © Tomas Ernst/World Bank

Following several year's of research and advocacy, the Australian government opened its borders this year to the short-term supply of labour from the Pacific Islands (PIs). Evidence from New Zealand showed that when temporary labour mobility programs are well managed - with the appropriate level of monitoring to prevent worker exploitation and with the right incentives to minimize overstaying - the scheme is win-win for growers and PI workers. Growers enjoy a steady, reliable source of labour and PI workers receive income at least 4-5 times the GDP/capita of their home country.

My colleague Nathan and I travelled to Griffith, New South Wales where six ni-Vanuatu workers were preparing to head home following a six-month assignment picking, pruning and packing fruit. All workers reported a significantly improved financial position, with the majority sending regular remittances to their family members and local villages. In terms of skills acquisition, the training workers received on farms in Australia will benefit them when they return home to agriculture dependant economies of the South Pacific.