Dilip Ratha The World Bank - United NationsDilip Ratha The World Bank New York, November 13, 2014...
Transcript of Dilip Ratha The World Bank - United NationsDilip Ratha The World Bank New York, November 13, 2014...
Dilip RathaThe World Bank
New York, November 13, 2014
Session 1: Exploring nexus between financial sector development, inclusion & stabilitySubstantive Informal Session on Private FinancePreparatory Process for the Third International Conference on Financing for Development
Remittances and Development
Diaspora Financial Resources for Development
Remittances
Diaspora saving
Diaspora giving
Securitization of remittances
Contribution to sovereign credit rating
Remittances
$413 Billion Remittances
$135 Billion Aid
Remittances to developing countries are large ($435 billion in 2014), and more stable
Source: Development Prospects Group, World Bank
-100
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100
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1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014f 2016f
FDI
Remittances
Private debt & equity
ODA
$ billion
Excluding China, remittances to developing countries are larger than FDI
Source: Development Prospects Group, World Bank
0
50
100
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1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014f 2016f
FDI$ billion
Remittances
Remittances
42% of GDPTajikistan
35% of GDPSomalia
$18 bnEgypt
$72 bnIndia
$ billion % of GDP
31%
NepalPoverty rate
42%
1995 2005
Aid that works!
Exorbitant remittances costs
8% 12% 90%Global average Africa Venezuela
20%Within Africa
Reduce remittance cost
1. Relax regulations for small remittances
2. Abolish exclusive partnership with post office
3. Create a non-profit remittance platform
8% (Global average)
$30 Billionannual savings
1%
Reduce remittance cost
Harness the power of diaspora saving and diaspora giving
• Size, corridors, channels• Counter-cyclicality • Effects on poverty, education, health, investment• Policy (costs, competition, exchange controls)
1. Monitoring, analysis, projection
• Payment platforms/instruments• Clearing/settlement, capital adequacy, disclosure, cross-border
arbitration• Anti-money laundering (AML/CFT)
2. Retail payment system
• Deposit and saving products• Mortgage, consumer loans, microfinance• Credit history for MFI clients• Insurance products
3. Financial access for households, SMEs
• Sovereign credit rating• Bonds backed by future remittances as collateral• Diaspora bonds
4. Capital market access for countries,
companies
Global Remittances Agenda
Thank you.
www.worldbank.org/migration
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