Promoting Remittance for Development Finance

Transcription

1 Cmpletin Reprt Prject Number: Technical Assistance Number: 8725 July 2017 Prmting Remittance fr Develpment Finance This dcument is being disclsed t the public in accrdance with ADB s Public Cmmunicatins Plicy 2011.

2 In preparing any cuntry prgram r strategy, financing any prject, r by making any designatin f r reference t a particular territry r gegraphic area in this dcument, the Asian Develpment Bank des nt intend t make any judgments as t the legal r ther status f any territry r area.

3 TA Number, Cuntry, and Name: Amunt Apprved: $200,000 TA 8725-REG: Prmting Remittance fr Develpment Finance Revised Amunt: $300,000 Executing Agency: Asian Develpment Bank TA Apprval 26 September 2014 TA Signing Date: 26 September 2014 Surce f Funding: Financial Sectr Develpment Partnership Special Fund Fielding f First Cnsultant: Amunt Undisbursed: $42, TA Cmpletin Date Original: 30 Nvember January 2015 Accunt Clsing Date Original: 28 February 2016 Amunt Utilized: $257, Actual: 30 Nvember 2016 Actual: 24 January 2017 Descriptin Fr many ADB develping member cuntries (DMCs), remittances are an imprtant freign exchange surce. Hwever, DMCs have nt yet fully utilized the ptential f remittances as a cntributr t grwth and develpment. ADB s assistance and peratinal supprt in remittances has als been limited. This capacity develpment technical assistance (CDTA) aimed t imprve the knwledge f ADB DMCs n ptins that wuld imprve remittance intermediatin fr ecnmic grwth, and enhance appreciatin n reginal crdinatin in remittances fr reginal integratin and accelerated grwth. The TA initially amunting t $200,000 was apprved and became effective in September A supplementary funding f $100,000 was later apprved in February Expected Impact, Outcme, and Outputs The expected impact f the TA was increased ADB peratinal fcus and assistance t supprt access f remittancereceiving DMCs access t frmal remittance channels and remittance securitizatin. The TA utcme was imprved knwledge f remittance-receiving DMCs n ptins t increase access t frmal remittance channels and n remittance-linked investments. The expected utputs were (i) a successful internatinal wrkshp n remittance fr develpment cnducted, and (ii) knwledge prducts prduced and disseminated. Delivery f Inputs and Cnduct f Activities The TA was managed by the Public Management, Finance Sectr and Trade Divisin (SAPF) f the Suth Asia Department and was implemented in crdinatin with the Office f Reginal Ecnmic Integratin (OREI) 1, Finance Cmmunity f Practice 2 and ther reginal departments. The event page fr the event was hsted by the Department f External Relatins (DER). The cnference lgistics were managed by SAPF with supprt frm a natinal cnsultant. Initially, three individual cnsultants were prpsed t be engaged n intermittent basis as fllws: (i) capacity develpment and knwledge management specialist (natinal, 3 persn-mnths), (ii) remittance specialist (internatinal, 2 persn-mnths), and (iii) securitizatin expert (internatinal, 1 persn-mnth). The capacity develpment and knwledge management specialist was recruited first t supprt SAPF in the required arrangements fr the wrkshp. The initial TA design and frmulatin was relevant t the scpe but a few requirements were nt envisaged in the initial design and had t be added later t expand the scpe f knwledge prducts. There were fur changes made in the scpe f the TA, as discussed belw. Accrdingly, the TA cmpletin was extended by a year as a result f the changes in implementatin: (i) On 12 February 2015, a supplementary funding f $100,000 was apprved t expand the TA scpe specifically t increase the input f securitizatin expert by 10 days, increase the number f resurce persns by six, and prvide fr wider disseminatin f knwledge management materials. (ii) The secnd change in the TA scpe was apprved n 2 September Based n the participants discussin, the frum identified tw areas fr ptential ADB prjects: (a) diaspra bnd fr infrastructure and scial sectr investments; and (b) remittance future flw securitizatin. There was als an infrmal prpsal frm the Wrld Bank t prduce a jint publicatin. Accrdingly, the remittance specialist was replaced with an internatinal diaspra bnd specialist and the time f the securitizatin expert was expanded t 2 mnths. It was als decided t prduce a jint 1 OREI s Finance Sectr team has mved t SDCC. OREI has been renamed as Reginal Cperatin and Integratin (ERCI) and integrated as a divisin f the Ecnmic Research and Reginal Cperatin Department. 2 Finance Cmmunity f Practice (FCOP) is nw called Finance Sectr Grup.

4 publicatin with the Wrld Bank, and cnduct feasibility studies n tw subjects viz. diaspra bnd, and remittance securitizatin. The internatinal diaspra bnd specialist was cntracted n 8 December (iii) Thrugh anther minr change in scpe apprved n 4 December 2015, it was decided t cnduct prject feasibility studies and recruit an internatinal payments system and e-banking specialist (2 persn-mnths). Securitizatin specialist was nt recruited. (iv) The last minr change in scpe was apprved n 1 February The psitin f internatinal payments system and e-banking specialist was split int three psitins f 1 persn-mnth each: (i) financial regulatin fr e-banking specialist, (ii) payment system specialist, and (iii) e-banking specialist. These specialists were engaged in March ADB s perfrmance was satisfactry. ADB respnded t the suggestins that emerged frm the frum and made mdificatins in the scpe fr an imprved understanding f the ptins fr deplyment f remittances. The changes aligned well with the DMF. All individual cnsultants were rated satisfactry in the verall perfrmance evaluatin. The TA was, hwever, deemed t be less than efficient in delivering the utputs. The scpe was changed fur times and the cmpletin date was extended by 1 year. ADB-Wrld Bank publicatin gt significantly delayed and was mved t anther TA. With the additin f supplementary funding, the TA amunt was expanded t $300,000. Of this, abut $42,756 was undisbursed frm savings under miscellaneus TA administratin csts. All cnsultants were engaged in accrdance with ADB s Guidelines n the Use f Cnsultants (2013, as amended frm time t time). All disbursements under the TA were made in accrdance with ADB s Technical Assistance Disbursement Handbk (2010, as amended frm time t time). Evaluatin f Outputs and Achievement f Outcme The tw TA utputs were satisfactrily delivered. First, the frum n Prmting Remittances fr Develpment Finance was held n March 2015 at ADB Headquarters. A ttal f 210 peple participated in the frum, much beynd the indicatr target f 50. These participants were frm gvernments, central banks, financial regulatrs, public and private financial institutins, micr-finance institutins, NGOs, develpment partners, media and academia, as well as ADB staff frm headquarters and resident missins (Appendix 1). The frum was inter-reginal with participatin frm mre than 100 institutins frm 34 cuntries against a target f at least 15 institutins frm 10 cuntries. Other peratins departments were helpful in identifying and nminating the participants. The diversity f institutins and natinalities enriched the frum in sharing f experiences, ideas and lessns. The wrkshp sessins were aligned with the desired frum bjectives (Appendix 2). The pst-frum nline evaluatin indicated high satisfactin amng the participants. Abut 98.5% f survey respnses gave a rating abve 3 (average) while 22.7% gave the highest rating f 5 (excellent), significantly abve the minimum expectatin f 70% satisfactry respnses (Appendix 3). Fr the secnd utput, an event hmepage fr the disseminatin f knwledge prducts was established by SAPF in crdinatin with DER and FCOP. A reprt n Wrker Migratin and Remittances in Suth Asia was disseminated thrugh the event hmepage. 3 The TA has prduced the fllwing knwledge prducts: (i) Digital Payment Systems, Mbile Mney Services and Agent Banking: Bangladesh, Nepal and Sri Lanka, (ii) Feasibility Study: Remittances fr Develpment Prgram- The Peple s Republic f Bangladesh, and (iii) Feasibility Study: Remittances fr Develpment Prgram- The Demcratic Scialist Republic f Sri Lanka. 4 The jint publicatin with the Wrld Bank titled Migratin and Remittances fr Develpment in Asia was delayed due t late submissin f inputs by the Wrld Bank, and is nw expected t be prduced by the end f December 2017 under RETA Event hmepage: and Frum prceedings: 4 Surce: 5 ADB Strengthening Knwledge-Driven Develpment in Suth Asia (Small Scale Research and Develpment Technical Assistance fr Develping Financial Sectr Knwledge in Suth Asia). Manila.

5 The utcme indicatr (i.e. DMCs t have increased knwledge f frmal remittance channels) was that at least 20 wrkshp participants agree t endrse the wrkshp recmmendatins t their gvernments and relevant institutins by April This indicatr was nt captured in the wrkshp evaluatin frm. Hwever, given that the pst-frm evaluatin indicated high satisfactin, it is expected that the participants wuld endrse the wrkshp s recmmendatins t their respective gvernments. The expected utcme wuld be cnsidered partly achieved. The TA was effective since peratinal targets and utputs were largely met, the frum was successful and capacity f participants was enhanced. The TA was, hwever, deemed t be less than efficient in delivering the utputs. The scpe was changed fur times and the cmpletin date was extended by ne year. ADB-Wrld Bank publicatin gt significantly delayed and was mved t anther TA. Overall Assessment and Rating Overall, the TA is cnsidered successful. The TA is cnsidered relevant because it aligned well with ADB s and the gvernment s strategic agenda f inclusive ecnmic grwth. Remittances hld immense ptential as drivers f ecnmic grwth and develpment acrss ADB DMCs. The TA was effective in achieving the utcme and utputs, but less than efficient due t delays and scpe changes. The TA is likely sustainable. Over the lng term, the TA is expected t help remittance recipient DMCs t expand their access t frmal financial services and prmte leveraging f remittance flws thrugh securitizatins r securitizatin-type structures. The frum expsed the participants frm diverse backgrunds t the channels thrugh which remittances can cntribute t a cuntry s ecnmic grwth. It received an enthusiastic respnse frm participants. The knwledge prducts were develped further int cncepts fr ADB supprt in Bangladesh and Sri Lanka, althugh these may require fllw up fr gvernment wnership. The learnings frm this TA can be applied in ther cuntries as well. Majr Lessns This RETA is a gd example f inter-reginal cperatin within ADB. Althugh the frum was initiated by SARD, ther peratins departments were quite helpful in identifying and nminating the participants. The diversity f institutins and natinalities enriched and enhanced the quality f discussins. It was in respnse t these discussins that further changes in the TA scpe were envisaged, including a study n the diaspra bnd and the jint ADB-Wrld Bank publicatin. Recmmendatins and Fllw-Up Actins The ttal remittances cming int ADB DMCs reached $263 billin in Fr many cuntries, remittances are amng the mst imprtant freign exchange surces and have significant ptential fr financing develpment prjects. ADB s effrts t mbilize remittances fr develping financing have been rather limited and scattered. Cntinued invlvement f ADB with DMCs n the subject is imprtant. ADB can assist DMCs thrugh knwledge disseminatin, technical assistance, and pilt prjects t channel remittances fr develpment investments. At the same time, wnership frm gvernments wuld als be a key factr. Alternatively, partnership with dedicated financial institutins can be cnsidered. ADB = Asian Develpment Bank; CDTA = capacity develpment technical assistance; DMCs = develping member cuntries; NGO = nn-gvernmental rganizatin; RETA = reginal technical assistance; SAPF = Public Management, Finance Sectr and Trade Divisin; SARD = Suth Asia Department; TA = technical assistance. Prepared by: Navendu Karan Designatin and Divisin: Senir Public Management Ecnmist, SAPF

6 Appendix 1 Participants Cuntry Representatin in the Frum (Held n March 2015) Number f Participants Armenia 2 ADB-HQ 47 Australia 4 Bangladesh 9 Belgium 1 Bhutan 3 Cambdia 1 Fiji 1 Gergia 1 India 1 Indnesia 1 Japan 3 Kazakhstan 2 Kiribati 1 Kyrgyz Republic 3 La Peple s Demcratic Republic 1 Maldives 1 Mnglia 2 Myanmar 1 Nepal 5 Pakistan 1 Philippines* 90 Peple s Republic f China 1 Sama 1 Singapre 3 Sri Lanka 4 Tajikistan 2 Tunisia 1 Tuvalu 1 Ukraine 1 United Kingdm 3 United States 3 Uzbekistan 2 Viet Nam 7 Ttal 210 * The number f participants frm the Philippines excludes ADB HQ staff, which is shwn separately in the table.

7 Appendix 2 The Alignment f Wrkshp Sessins with the Desired Frum Objectives Targeted emphasis f the frum (Para 15 f the TA mem dated 24 Sept 2014) 1 Enhance financial inclusin and access t frmal remittance with innvative slutins Cvered in Sessin(s) Sessin 2: Remittances and husehld investments Sessin 3:Remittances and access t finance- Cnducive plicies and business envirnment Sessin 4: Remittance innvatins and digital finance Sessin 5: Facilitating New and Innvative Transactins: ADB Supprt and Instruments 2 Link remittances t debt securities fr grwth riented investments Sessin 6: Leveraging Remittance Flws: An Intrductin t Future Flw Transactins Sessin 7: Diaspra Bnds Appraches and Cuntry Studies

8 Appendix 3 Range f Average Satisfactin Rating Satisfactin Rating Amng Frum Participants Overall Satisfactin Number f Participants Frum Cntent Frum Arrangements Overall Satisfactin % f Participants Frum Cntent Frum Arrangements 1 t % 1.5% 1.5% 2 t < % 0.0% 0.0% 3 t < % 21.2% 21.2% 4 t < % 54.5% 54.5% % 22.7% 22.7% Ttal respnses % 100.0% 100.0%