capturing information on remittances and other flows – a fact-finding in europe
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Capturing information on remittances and other flows – a fact-finding in Europe. Violetta Damia. International Technical Meeting on Measuring Migrant Remittances. 24 - 25 January 2005. Overview. General considerations Definitions (BPM5) Fact-finding exercise - PowerPoint PPT PresentationTRANSCRIPT
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Capturing information on remittances and other
flows – a fact-finding in Europe
Violetta Damia
24 - 25 January 2005
International Technical Meeting on Measuring Migrant Remittances
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General considerationsDefinitions (BPM5)Fact-finding exerciseResults – Methodological issuesResults – Magnitude of flowsMain conclusionsQuestions?
Overview
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Workers’ remittances:
2nd largest source of external finance for developing countries
size relevant to GDP vs. low volatility shown
conceptual framework given by IMF BoP Manual (5th edition)
General considerations
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General considerationsDefinitions (BPM5)Fact-finding exerciseResults – Methodological issuesResults – Magnitude of flowsMain conclusionsQuestions?
Overview
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Compensation of employees: the earnings of border, seasonal, and other workers paid by an employer resident in one economy to employees resident in other economies paid in kind and/or in cash recorded under current account / income
Workers’ remittances: the remittances of funds to families abroad by residents (living in the host economy for 12 months or more)
recorded under current account / current transfers
Migrants’ transfers: the net worth of migrants at the time of migration (cash and goods transferred) –
recorded under capital account / capital transfers
Definitions (BPM5)
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General considerationsDefinitions (BPM5)Fact-finding exerciseResults – Methodological issuesResults – Magnitude of flowsMain conclusionsQuestions?
Overview
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EU Member States were requested to send available information on
1. Compensation of employees, 2. Workers remittances, and 3. Migrant transfers
with the objective to assess the magnitude of flows at the European level
Fact-finding exercise (WG-ES)
data and metadata if available, with geographical allocation
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General considerationsDefinitions (BPM5)Fact-finding exerciseResults – Methodological issuesResults – Magnitude of flowsMain conclusionsQuestions?
Overview
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Compensation of employees: The information reported is 1. partly collected by settlement systems, tax and social security systems and the resident credit institutions2. partly estimated based on the previous years, number of foreign workers, average wages, social contributions and census
Results: Meth. Issues (1)
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Compensation of employees: Main caveats: 1. high thresholds2. diversity of methods to transfer money3. 1-year-rule : difficult to apply in practicedifficulty to differentiate between compensation of employees and workers’ remittances
Results: Meth. Issues (2)
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Workers’ remittances: The information reported is 1. mainly collected by settlement systems, by banks and post offices, through household surveys, from foreign exchange reports2. difficult to estimate
Results: Meth. Issues (3)
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Workers’ remittances: Main caveats: 1. high thresholds2. diversity of methods of money transfers3. the presence of illegal foreign workers4. 1-year-rule : difficult to apply in practice
Results: Meth. Issues (4)
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Migrant transfers: The most difficult to measure difficulty for most countries to monitor
the flows separately
hence migrants transfers are recorded under workers’ remittances
the estimations are based on number of migrants and the average assets transferred
Results: Meth. Issues (5)
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General considerationsDefinitions (BPM5)Fact-finding exerciseResults – Methodological issuesResults – Magnitude of flowsMain conclusionsQuestions?
Overview
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Results: Magnitude of flows (1)
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Results: Magnitude of flows (2)Compensation of employees:
mainly EU25: temporal, seasonal and border workers American continent (especially the debit side)
Workers’ remittances: mainly EU25 debit side: balanced distribution worldwide
Migrant transfers: even distribution of low level flows:
underestimation?
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General considerationsDefinitions (BPM5)Fact-finding exerciseResults – Methodological issuesResults – Magnitude of flowsMain conclusionsQuestions?
Overview
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Main conclusionsneed to fill the recording gaps so as to have a
more concrete measurement review thresholds applied importance to follow harmonised methods to
ensure comparability (based on BPM5) further improvement of BPM5 in terms of
definitions encouragement for the utilisation of formal
channels by reducing transfers’ costs increase quality of information
(underestimations)development of estimation methods for capturing
reality (e.g. refinement of households surveys)
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Questions?