Opening Session

1
Opening Session

• The policy needs for data on remittances

2

• Remittances are a major policy concern
• Worldwide remittances are very large (up to 20
  of some countries GDP) and therefore important
  for macroeconomic performance.
• Estimates of US125bn annually were mentioned,
  possibly even higher some argue they match
  Foreign Direct Investment and exceed Official
  Development Assistance to developing countries.
• This reflects increased international migration
  and globalization.
• The concern is not about regulation, but
  improving policy environment.
• There is also an interest in relation to trade
  policy (Mode 4 of the GATS).

3

• Three Aspects of Policy
• Macroeconomic management
• Flows are stable and help countries in crisis.
• Trade policy focus, in relation to GATS.
• Development
• Unique flows that benefit households, including
  the poor.
• Developmental benefits can be enhanced with right
  environment.
• Enabling environment and financial deepening
• Where available, formal mechanisms are preferred
  by senders.
• Better data will support private sector
  investment in remittance and financial
  infrastructure.

4

• Policy Initiatives
• Existing policy initiative for better statistics
  for GATS purposes.
• New policy initiative comes from Ministries of
  Finance G7 (Sea Island Summit) and APEC.
• G7 has called for a statistical working group
  IMF has not been formally consulted.
• World Bank plans to feature the issue in Global
  Economic Prospects.
• Policy tools include unilateral (improving
  domestic regulatory environment), bilateral
  (between partner countries) and multilateral
  (mainly through international organizations).

5
Specific data requests

• Under the new initiative, focus on household to
  household transactions, less concern about
  worker and migrant concepts
• Aggregate data is most important, followed by
  bilateral data.
• There is also interest in details such as
  transfer channel (including informal) and
  frequency of flows as well as other details such
  as costs and regulatory conditions.
• Improvements in data quality are important.
• More extensive use of household survey data is
  also suggested.

6

• G7 set out draft terms of reference calling for
• Improved definitions of remittances
• Enhanced compilation guidance and
• Establishment of a bilateral data set.
• Present draft calls for a statistical working
  group to report by the northern hemisphere
  autumn, and for a conference at about the same
  time to disseminate findings.
• G7 ministries of finance emphasis cost-effective
  data sourcing methods.
• Resource costs of the project and need for
  support were mentioned.
• Once agreed, dont move the goalposts!