4th theme of the e-consultation

We are pleased to announce the final round of our e-consultation. Theme 4 is about “Diaspora and Development”. 
 
The role of diasporas in development strategies, poverty reduction and economic growth is attracting considerable policy interest, involving diasporas, host countries and home countries. The interests of these diverse stakeholders meet around one main question: What can be done today to maximize the development benefits of migration for all?

Diasporas have been making contributions for a long time, without waiting for policy to mobilize them and sometimes even in spite of these. However, diaspora contributions are directly related to institutional frameworks, socio-economic settings, political environments as well as issues of perceptions, images, trust and social identification, in both the home and host country. 

While there is a growing policy interest in tapping, mobilizing and channelling diaspora contributions, the role of policies should be clearly defined, and the approaches that can effectively facilitate the engagement of diasporas for development understood to ensure that diasporas are not deprived of the ownership of their contributions (IOM, Engaging Diasporas as Development Partners for Home and Destination Countries: Challenges for Policymakers, IOM Migration Research Series, No. 26, January, 2007).

Kindly find below some key questions, on which we hope you can share your views:

1. How to include Diasporas in existing development strategies? Can they be an actor/interlocutor in the development debates? 
2. What are major donor’s initiatives in support of diasporas (e.g. EU-Africa Dialogue on Migration and Development)?
3. What policies could facilitate remittances flows and transfer systems in rural areas?
4. How and what needs to be done to mobilize and channel remittances for rural development? 

In the final debate, we would focus on how we can engage diasporas in rural development by suggesting some programs, policies and/or advocating for translating existing policies that can harness the potentials of migration for rural development. We are also eager to receive information on existing initiatives.

We are very grateful to our contributors of the past debates. We sincerely look forward to your active participation in our last thematic discussion.  

On behalf of the organizers,

Leila Rispens-Noel

Coordinator, E-consultation

 

3rd theme of the e-consultation

We are pleased to announce the third series of our e-consultation where we will discuss about the role of migrants and diaspora organisations in rural development.

 

There are many studies referring to the positive contributions of migrants’ remittances to development. However, many of these policy debates tend to separate remittances from migrants, or better said, they talk about remittances but not the senders of remittances.

 

Katleen Felix, Diaspora Liaison of Fonkoze Haiti, wrote on her Facebook pages her impression on the recent large gathering of policy makers and international aid agencies in Montreal, Canada to discuss how to respond to the needs of earthquake victims. She said during this meeting, there were about 700 participants but only 10 are Diasporas. The Haitian migrants were only invited for the first part of the conference and during the press conference at the end of the day.

 

Katleen lamented that policy makers give the impression that diasporas are important but at the international level, diasporas are really not recognised as equal development partners. Haitian diasporas who have the skills, expertise, and knowledge are not (yet) targeted to be involved in the relief and reconstruction process of Haiti.

 

The World Bank estimates that Haitians abroad send home $1.5 billion to 1.8 billion remittances per year, or higher. That is much more than all the foreign aid that Haiti receives and continues to sustain millions of families in Haiti who are dependent on remittances. Aid from international donors in the aftermath of the earthquake is highlighted by the media. The support provided by Haitian diasporas to the affected rural areas which are not getting any support at all is hardly recognised. An interesting article related to this issue can be viewed at: www.palmbeachpost.com/opinion/columnists/let-haitians-already-in-u-s-help-rebuild-195030.html  

 

In this third series, we would like to hear your experiences or views about diaspora organizations and their existing initiatives. It would be interesting to know some concrete examples of HTA (Hometown Associations)-driven projects or initiatives from different countries, particularly in the rural areas.

We will try answer two key questions, namely:

 

1) What existing initiatives (best practices) do we know initiated by diaspora organizations which benefit their respective countries/communities of origin?

2) How are the diaspora organisations organized and how they interact with other migrants and local communities of origin?

 

For more information, kindly read the short background note on theme 3 here below.

 

We would like to thank those who have contributed to the previous discussion. Please note that contributions related to the first and second themes are still welcome.

 

We look forward to an animated discussion on this third theme during the next two weeks.

 

Best regards,

On behalf of the organizers

 

Leila Rispens-Noel

Coordinator, E-Consultation

 

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Theme 3:

Role of migrants and Diaspora groups in rural development

The term “diasporas” refers to expatriate groups which, in contrast to “migrants”, applies to expatriate populations abroad and generations born abroad to foreign parents who are or may be citizens of their countries of residence (IOM, Engaging Diasporas as Development Partners for Home and Destination Countries: Challenges for Policymakers, IOM Migration Research Series, No. 26, January, 2007). 

Sheffer defines diasporas as a “socio-political formation, created as a result of either voluntary or forced migration, whose members regard themselves as of the same ethno-national origin and who permanently reside as minorities in one or several host countries. Members of such entities maintain regular or occasional contacts with what they regard as their homeland and with individuals and groups of the same background residing in other host countries” (SHEFFER, Gabriel, Ethnic diasporas: A threat to their host? In Weiner, Myron (ed), International Migration and Security. Boulder, CO, Westview Press, 1993).

A potent benefit of high-skilled migration is the creation of a large, well-educated diaspora, which improves access to capital, information, and contacts for firms in countries of origin. Immigrants play a role in facilitating trade by providing information and helping to enforce contracts and by acting as intermediaries that can match buyers with reliable local suppliers. Some studies emphasize that diasporas can act as “first movers” who catalyze growth opportunities and make connections between markets that otherwise would not exist. Others cite the importance of diasporas in generating possibilities for co-development between firms in the countries of origin and destination, and expanding technical cooperation as seen in the increasing number of hometown associations, diaspora organizations, or philanthropic migrant organizations. However, despite the broad agreement on the importance of diasporas and the many anecdotal comments on how they have assisted development, it is difficult to quantify these benefits (World Bank, Global Economic Prospects. Economic Implications of Remittances and Migration, 2006).

 

QUESTIONS:

1. At the meso level, many communities benefit from development projects initiated and funded by associations of migrants overseas. What existing initiatives (best practices) do we know initiated by diaspora organizations which benefit their respective communities of origin?
2. How are the Diaspora groups organized and how do they interact with migrants and local communities in regions?

 

2nd theme of the e-consultation

We are pleased to inform you that we have concluded the first round of our e-consultation. We would like to thank those who sent their contributions.
Starting today, we will be sharing experiences and opinions on the theme Remittance Flows and their contribution to rural development.

The current global economic crisis highlighted the impact of remittances in developing countries. The data shows that in some countries remittances continue to perform better. The governments of Bangladesh and the Philippines acknowledged that without migrants’ contributions the country could have suffered more during the crisis. The Ugandan government plans to scrap visa fees it charges Ugandans in the Diaspora when coming back home. The government plans to create a fully-developed diaspora department to guide Diasporas on how to invest and succeed back home. These are latest initiatives in remittance-receiving countries to harness the potentials.

Hereafter you will find a brief background information and some guide questions. We encourage you to actively participate in the discussion which will run until January 20. We hope to get deeper insights on the contribution of remittance flows to rural development.

Please note that your contributions will be included in the summary which we will prepare at the end of the consultation.

We wish you all a HAPPY NEW YEAR and let us hope and work for a safer, greener, and better world.

Best regards,

On behalf of the organizers

Leila Rispens-Noel

Theme 2:
Remittance Flows and their contribution to rural development
Remittances have become the second largest capital flow behind Foreign Direct Investment (FDI) and ahead of Overseas Development Assistance (ODA). In 2001, remittances represented 42% of total FDI flows and 260% of ODA; remittance flows have surpassed ODA since 1995. Today remittances constitute the fastest growing and most stable capital flow to developing countries. Remittances have more than doubled in value in the past decade and also grown faster than migration - a trend which is likely to continue. Thus, while FDI and ODA have occupied the limelight of development finance to date, remittances have made a quiet yet substantial contribution to international capital flows as well as to national balance of payments, forex reserves, and, especially, to the welfare of receiving households in developing countries (DFID, Migrant Remittances to Developing Countries – A scoping study: overview and introduction to issues for pro-poor financial services, Prepared for the UK Department of International Development (DFID) by Cerstin Sander, Bannock Consulting, June 2003).

A good proportion of remittance flows also originate in developing countries. The World Bank notes that these so-called South-South remittance flows make up between 30 and 45 percent of total remittances received by developing countries. In fact, remittance flows to poor countries actually originate largely in the middle-income developing countries. China, Malaysia, and the Russian Federation, for example, are among the top 20 sources of remittances (World Bank, Global Economic Prospects 2006. Economic Implications of Remittances and Migration, Washington, 2006).

Remittances and their investment are significantly hampered by inefficiencies and access barriers in financial systems and services, both in sending and receiving countries. It is estimated that on average one third of remittances flow through informal channels; for countries with weak financial sectors or tight forex controls, sending money via informal channels is more common (DFID, cit., 2003).

Donors have begun to recognize the role of remittances and have become interested primarily in how to facilitate an increase of the flow and use of remittances for developmental benefits. This includes how to facilitate a reduction in transaction cost and better access to formal sector transfer services; as well as how to better integrate and improve access to a broader range of financial services through remittances as an ‘entry point’.

QUESTIONS:

• Are remittances a relatively large and stable source of funding for ACP countries? What do remittances generate at both micro and macro-economic levels?
• What are the households’ uses of remittances?
• Do remittances contribute to rural development? What concrete examples, best practices do we have in terms of contribution of remittances to productive resources and wealth creation in rural areas?
• What examples can be shared as successes in investment in human and social capital (e.g., health care, nutrition, education) and in building assets (e.g., real estate, business, and savings)?
• Has the financial crisis affected this source of income?