The new challenge
The new challenge
MOBILISING THE ECONOMIC POTENTIAL OF MIGRANT SAVINGS AND REMITTANCES
The positive role of migrant remittances in the process of development has been the subject of spirited discussions in recent years. It is no wonder that much of the literature on the migration-development nexus has revolved around the topical issue of foreign workers’ remittances. In its report entitled ‘Global Development Finance 2003′, released in April, the World Bank had every reason to be excited about migrant remittances being a major source of development finance. In magnitude alone, the World Bank says that migrant workers’ pay check, have become a more important source of finance for developing countries than private lending.
But how exactly does the ‘remittances-leading-to-development’ phenomenon work out in practice? How can one imagine, for example, the aggregate $72 billion remittances to the developing countries in 2001, being channelled to uses that are valuable and sustainable from a development standpoint? In spite of the many documented cases worldwide which argue for a stronger emphasis on remittances in the development equation, the fact remains that there is still very much to be done by way of systematically transforming the potential of migrant remittances to the reality of development in people’s lives. This is the general conclusion of a Novib-supported international conference held on the island of Bohol, the Philippines, in late October.
Conference in the Philippines
The conference was attended by over 150 participants who came from all over the world to consider the position of Overseas Filipino Workers (OFWs) in the redefined problem of development finance. The meeting sought to gather local experiences and initiatives on OFW savings, remittances and economic undertakings and link these with a ‘plan of action’ or a transnational strategy that will indeed make remittances a new and vital coincidence that about a quarter of the participants were government functionaries, representing local government units and national agencies. If any conclusive insight has emerged over the past decade concerning attempts around the world to make effective use of remittances for sustainable local development, it is the indispensable characteristic of GO-NGO cooperation in the field. In the Philippines, which is the third largest recipient of inward remittances flows, there is a widely accepted expectation that the government is also responsible for the meaningful ‘reintegration’ of OFWs.
‘One-Stop Centre’
It is truly amazing how migrants, including their families and organizations in civil society, have developed creative ways of using remittances for ‘development-orientated’ projects. One best-practice case highlights the agricultural enterprise venture undertaken by a group of domestic helpers based in Hong Kong. Another NGO explained how it was possible for their group to establish a ‘One-Stop Centre’ for OFWs, which provides services ranging from insurance and retirement options to social counselling for clients and their families. Even a seafarers’ cooperative based in the Netherlands was able to establish a successful partnership with an association of Christian and Muslim vendors in Mindanao and in the process effectively implement a micro-concept of peaceful coexistence in this conflict-ridden region. Last but not the least, a municipal government unit pioneered the use of legislation (rather than non-binding MOUs) to make it mandatory for local government authorities to assist OFWs in the latter’s entrepreneural endeavours.
Action agenda
At the end of the conference, the participants adopted a rather detailed and ambitious ‘Statement of Principles and Action Agenda’. The document confidently endorses the thesis that migrants’ remittances have become indispensable in community-driven development, with ‘community’ now being understood to be a more inclusive partnership of stakeholders from local to global levels. On the whole, the dynamic of migrant remittances moving to the centre of sustainable development finance is a thrilling prospect that deserves close attention – and support – in the development community.
Sedfrey Santiago, PSAP consultant
For feedback, write to www.psap-parola.org or sedfrey_psap@hotmail.com.
***The convenors of the conference included the Overseas Workers Welfare Administration of the Philippine government and two Novib counterparts: The Asian Migrant Center (AMC), based in Hong Kong, and the Philippine Seafarers Assistance Programme (PSAP), based in Rotterdam
Bohol Declaration 2003: Bohol Statement of Principles and Action Agenda
Bohol Declaration 2003: Bohol Statement of Principles and Action Agenda – in PDF format (18 KB)
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