Diaspora engagement: Economic and social remittances

Transcription

1 Diaspora engagement: Economic and social remittances Mainstreaming Migra,on into Development Planning Viceministery for Salvadorans Living Abroad

2 An important and crucial ques:on: What is the nature of remi7ances? On the nature of remi>ances three things have to be considered I. The conceptual framework and tools for measures II. Impacts on poverty and economic and social structure III. Mo:va:ng factors

3 Conceptual Framework It has generally been treated as privated trasnfer from country of des:na:on of migra:on to the country of origen Sender: Country of des,na,on Receiver: Country of origen Consump,on Transfer Channel Investment Household use of remi>ances

4 The concept of Remi7ances as simple transfer of money leave out important cons,tu,ves elements Remi>ances are not only transfers of money, goods and services but complex social and emo:onal rela:onships between senders and receivers Remi>ances are subje:ve rela:ons among actors under the appearence of money or goods If the remi>ances are subje:ve in nature is expected that the use of these is intended for consump:on or current expenditure of household, rather than for invesment or saving.

5 In that sense: Remi>ances are a frac:on of the wages of migrant labor that acquired a transna:onal character For that reason, they have the same func:on of wages: To be used for consump:on, to create the condi:ons of labor force reproduc:on, with the only characteris:c of being create in the country of des:na:on and used in the country of origen The reproduc:on of labor force takes place within a global labor market, in a context of bina:onal rela:onships and transna:onal families.

6 The above analisys goes beyond the economic field. It involves sociological, anthropological and cultural factors The factors of remi>ances sending pa>ern are located beyond purely economic concepts. Thus, the amount and dynamics of remi>ances noy only respond to the economic performance in the countries of des:na:on but also the complex rela:onship of mul:ple factors The analisys needs to go further the push- pull framework and to create a new conceptual model.

7 The remi7ances dynamics can be determined by the following condi,ons The nature and dynamics of labor market in both sending and origen countries The level of Human Capital of Migrants (age, educa:on, health) Gender Social background of transna:onal famillies (Different behavior of poor and middle class transna:onal families) The level and nature of linkage between the sender and family and home community The family composi:on of migrants in both home and des:na:on countries The level of social and laboral inser:on of migrants

8 The :me of residency of migrants in the country of des:na:on The ini:al objec:ves of migra:on The needs and demands of family in the home country The prioraty of family and home community in migrants life The social expecta:on of migrants And: Mayor Migratory Flows It is the complex interplay of these factors that influence the dynamic of remi>ances flow.

9 El salvador Remi7ances ( ) Year Remittances Rate of Growth (%) , , , , , , , , , , , ,

10 The impacts of remi7ances on poverty and macroeconomics Remi>ances reprecents the 16.5% of GDP (2011) They represent a fundamental pillar of the economy and macroeconomic stability Despite the above the economic performance has benn very poor. In the last five years the avarage GDP growth has been only 2% per year. The stability has been the result of substancial imput of external resources (Remi>ances) Not the strengthening internal produc:on network Domes:c demand has been sa:sfied by way of imports

11 Impact on demand PIB y Consumo Total 24,000 23,000 Remesas 22,000 21,000 20,000 Miles US$ 19,000 18,000 17,000 PIB Consumos Total 16,000 15,000 14,000 13,

12 Impact on households More than 337,000 households are recipients of remi>ances (27%) Remi>ances represent 60% of total household income The average income of recipient families is 30% higher than households without remi>ances Remi>ances reduce poverty levels by 10% Has guaranteed access to basic services, health, educa:on, housing

13 But They are weakening the availability to work to increase the reserva:on wage. Communi:es and households with remi>ances have weaker produc:ve networks with significant growth of commercial and service sectors. Remi>ances addic:on has caused depopula:on and significant demographic changes, lack of growth of working age popula:on It is reaching the popula:on threshold for development

14 What to Do To make migrants development partners in two ways: As a growth market, every Salvadoran family spends $ 115 U.S. weekly ethnic products. This represents a market of approximately U.S. $ 4 billion annually. Linking produc:on of Salvadorans abroad with local economic development efforts. Growth of remi>ances on investment (self- interest mo:va:on)

15 Link migrants produc:vely with the development of territories with the highest expulsion. Formula:on of local public policies that anchor and sustainable return of migrants ini:a:ves. - Strong ins:tu:onal coordina:on - Strengthening the capaci:es of key local actors - Genera:on of development opportuni:es To include Social Remi>ances: Transfer of values, norms and capabili:es.

16 Migra,on and development linkages need an integral approach