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Migrant Remittances and Migrant Remittances and DevelopmentDevelopment
Republic of Republic of Moldova Moldova - country - country experienceexperience
SeminarSeminarRemittance flows from the Czech Republic Remittance flows from the Czech Republic and their development impactand their development impactPrague, 24 February 2009Prague, 24 February 2009
Ghenadie Cretu, Ghenadie Cretu, International Organization International Organization for Migration, Mission to Moldovafor Migration, Mission to Moldova
OutlineOutline
1. Basic facts1. Basic facts
2. Migration. Impact on development 2. Migration. Impact on development
3. Remittances: an Overview 3. Remittances: an Overview
4. Remittances: Impact on Economic Growth 4. Remittances: Impact on Economic Growth
4.1. Positive Impact on Economic Growth4.1. Positive Impact on Economic Growth
4.2. Negative Impact on Economic Growth4.2. Negative Impact on Economic Growth
5. Knowing remittances. Putting them to use 5. Knowing remittances. Putting them to use
6. Policy Recommendations 6. Policy Recommendations
7. Policy Instruments7. Policy Instruments
Basic facts – International Organization Basic facts – International Organization for Migration, 1951for Migration, 1951
Managing Migration for Managing Migration for the Benefit of Allthe Benefit of All
IOM – principal International IOM – principal International Organization in the field of Organization in the field of management of migration:management of migration:– Assists in Assists in meeting the
growing operational challenges in the field of managing migration
– In-depth research and understanding of migration issues
– Harnessing the economic and social development potential of migration
– Upholding the dignity and well-being of the migrants
GROWTH
1998 2008
Member States 67 122122
Operational Budget (USD, mln)
242,2 750750
Field locations 119 400400
Projects 686 17701770
Operational staff
1100 56005600
IOM MoldovaIOM Moldova country strategycountry strategy
The IOM Mission in Moldova operates in supporting the country in The IOM Mission in Moldova operates in supporting the country in managing migration for the benefit of all. managing migration for the benefit of all.
IOM Moldova acts with its partners to:IOM Moldova acts with its partners to:
Encourage the country’s social and economic development for Encourage the country’s social and economic development for effective management and more effective use of the benefits of effective management and more effective use of the benefits of migration;migration;
Advance understanding of migration issues; Advance understanding of migration issues; Protect the rights and dignity, as well as the prosperity of migrants.Protect the rights and dignity, as well as the prosperity of migrants.
Main areas of activity:Main areas of activity: Migration management;Migration management; Prevention of human trafficking;Prevention of human trafficking; Rehabilitation and reintegration of victims of human trafficking;Rehabilitation and reintegration of victims of human trafficking; Labour migration and remittances;Labour migration and remittances; Assisted voluntary return;Assisted voluntary return; Migration and health.Migration and health.
Basic facts - MoldovaBasic facts - Moldova
Area, sq. km - 33 843Area, sq. km - 33 843
Capital – ChisinauCapital – Chisinau
Population 2008, millionsPopulation 2008, millions - - 4.34.3
Urban/rural distributionUrban/rural distribution – – 46 % / 54 %46 % / 54 %
Total aid as proportion of GDP, 2004 (per cent)Total aid as proportion of GDP, 2004 (per cent) - - 4.54.5 %%
Adult literacy (per cent)Adult literacy (per cent) - - 99.199.1 %%
Life expectancy at birth (years)Life expectancy at birth (years) - - 70.570.5
GDP per capita, PPP (2008)GDP per capita, PPP (2008) - - 2,502 USD (compare with Czech 2,502 USD (compare with Czech Republic – 26,800 USD)Republic – 26,800 USD)
Geographic location of MoldovaGeographic location of Moldova
Main economic indicatorsMain economic indicators
InflaInflationtion (200 (20088)- )- 13,13,88%% Export Export -- $1.79 billion f.o.b. (2008) $1.79 billion f.o.b. (2008) Import Import - - $$ 55 billion billion (200(20088)); trade deficit – over 3 billion (Jan’09) ; trade deficit – over 3 billion (Jan’09) Trade pTrade partartnersners – – EEUU – 5 – 511 %, CI %, CISS – – 3939 % % RemitRemittancestances (200 (20088) - ) - $$ 1, 1,6565 billionbillion (3 (377,,77% % ratio toratio to GDPGDP)) Unemployment Unemployment (2007) – 5,1 %(2007) – 5,1 %, 25% labor force is abroad, 25% labor force is abroad GDPGDP by sector: by sector: agriculturagriculturee: (17,: (17,33%) industr%) industryy: (21,: (21,55%) servic%) serviceses: :
((4343,,33%) (est. 200%) (est. 20088)) Labor force:Labor force:11..332727 million million (200(20088)) EconomEconomy growth rates: y growth rates: 2.1% 2.1% iin 2000, 6.1% n 2000, 6.1% iin 2001, 6.7% n 2001, 6.7% iin n
2002, 6.2% 2002, 6.2% iin 2003, 7.3% n 2003, 7.3% iin 2004, 7.9% n 2004, 7.9% iin 2005, 3.1% n 2005, 3.1% iin n 2006, 7.3% 2006, 7.3% iin 2007 n 2007 andand 7.5% (est.) 7.5% (est.) iin 2008n 2008..
GDP inGDP in realreal terms terms iin 1996 n 1996 constitutedconstituted 36,0% 36,0% compared tocompared to 19891989. . IIn 1999 n 1999 GDP was onlyGDP was only 33 % 33 % compared tocompared to 1989 1989
The population income decreased toThe population income decreased to USD 318 USD 318 per year inper year in 1999 1999
Migration realities in MoldovaMigration realities in Moldova
Moldova, 1999-2005: Migrants abroad(LFS estimates)
0
50
100
150
200
250
300
350
400
450
All Migrants
Men
Women
Rural
Urban
In Moldova, total number of emigrants grew from fewer than 100,000 in 1999 to around 400,000 by the end of 2006. The total number of labor emigrants is now estimated at around 345,000 (IOM’s survey).
Driving forces:• Pull factors: saving for household investments • Push factors: absence of a job; need to cover daily consumption• Inter-country networks: developed over time, facilitating migration
0 20000 40000 60000 80000 100000 120000 140000 160000
Russia
Italy
Turkey
Spain
Greece
Portugal
Ukraine
Israel
Romania
Other countries
France
Cyprus
Belgium
Germany
Czechia
Great Britaine
Male
Female
Distinction of major migrant groups by Distinction of major migrant groups by destination country and economic sectordestination country and economic sector
1. CIS construction: 1. CIS construction: workers in the construction industry in CIS workers in the construction industry in CIS countries (mainly Russia, Ukraine); Predominantly male, from rural countries (mainly Russia, Ukraine); Predominantly male, from rural areas, relatively low levels of educationareas, relatively low levels of education
2. CIS other: 2. CIS other: other workers in CIS countries (mainly Russia, Ukraine); other workers in CIS countries (mainly Russia, Ukraine); Half are women, mainly from rural areas, considerably higher level of Half are women, mainly from rural areas, considerably higher level of educationeducation
3. EU (=EU25): 3. EU (=EU25): main countries: (Italy, Portugal); More than half are main countries: (Italy, Portugal); More than half are female, higher share of urban migrants, high level of education;female, higher share of urban migrants, high level of education;
Moldovan migrants in Czech Republic: ~10,000; permanent residents: ~2,000; other status: ~8,000; female-3,500, male-6,500
4. Other: 4. Other: main countries: (Turkey, Romania); Predominantly female, main countries: (Turkey, Romania); Predominantly female, half from urban areas. half from urban areas.
Main migrant groupsMain migrant groups
0% 20% 40% 60% 80% 100%
2006
2008
CIS construction CIS other EU Other
•Labour migration profoundly affects the economic and social development of Moldova.
•As of mid-2008, approximately one quarter of the economically active population was occupied abroad.
•About 100,000 individuals have left Moldova permanently since 2006
• Of these, approximately 60,000 individuals belonged to households that completely relocated from Moldova to another country
Legal and illegal migrationLegal and illegal migration
0% 10% 20% 30% 40% 50%
Total
CIS construction
CIS other
EU
Other
Migrants with illegal residence status
2006 2008
Illegal residence status has become more widespread in CIS countries while the situation has improved in the EU and other host countries
Illegal residence status puts migrants at greater risk of arbitrary treatment by local authorities, swindlers, exploitative working conditions, etc.
Migrants who stay in their host country for an extended period often manage to obtain legal status: 65% of illegal migrants in 2006 became legalized by 2008
Illegality reduces benefits from migration, but also the incentives for remaining abroad permanently.
Migration: Impact on DevelopmentMigration: Impact on Development
Positives:Positives: Economic gain - remittances, investment etc.Economic gain - remittances, investment etc. Labor market and employment opportunities abroad Labor market and employment opportunities abroad
(enhanced mobility of labor force)(enhanced mobility of labor force) Migration can empower women/other groupsMigration can empower women/other groups Impacts on social institutions - origin & destination Impacts on social institutions - origin & destination
countriescountries Migrants as development agents (human, social Migrants as development agents (human, social
capital, skills, fostering innovation, progress and capital, skills, fostering innovation, progress and advancement)advancement)
Diaspora as a source for economic and social Diaspora as a source for economic and social developmentdevelopment
Return (brain circulation) can maximize developmental Return (brain circulation) can maximize developmental impacts of migration by transfer of skillsimpacts of migration by transfer of skills
Equalizing effects on income of origin countriesEqualizing effects on income of origin countries
Migration: Impact on DevelopmentMigration: Impact on Development
Negatives: Brain-drain (loss of human capital, including highly
qualified specialists); Social: torn families, children left behind, weakening
the social protection system Inflation impact on economy/pressure on currency
exchange rate Increased inequality/disparity in incomes Creation of a “tradition of migration” Irregular migration harms inter-state relations
Remedy: a comprehensive migration policy needed at the national level, supported by appropriate legislations and implementing mechanisms
Remittances: broad trendsRemittances: broad trends
In Moldova, remittances reached US $ 1.2 billion in 2007 and $ 1.65 billion in 2008 (National Bank of Moldova data on formal transfers data); ratio to GDP–37.7%, one of the highest in the world.
Total sum of remittances (including via informal channels) is estimated at $ 2 billion in 2008.
Remittances have exceeded total
exports and exceeded by 50 % the merchandise exports (NBM, 2008, QIII).
0
500
1000
1500
2000
2500
2000 2001 2002 2003 2004 2005 2006 2007 2008
mill
ion
US$
Level of remittances (NBM, 2008 estimated)
Total remittances NBM US$ millionElectronic transfersMoney transfer operators
0%
10%
20%
30%
40%
2000 2001 2002 2003 2004 2005 2006 2007 2008
Remittances (percent of GDP)
Remittances: data collectionRemittances: data collection
•National Bank of Moldova: aggregate estimates of remittances are based on balance of payments
•Balance of payments must add up to zero - plausibility check of estimates, particulary of remittances transmitted to Moldova as cash foreign exchange
•Remittances are calculated by adding two posts in the balance of payment: compensation of Moldovan residents employed abroad + transfers from migrants permanently residing abroad.
•Surveys that ask respondents about their income or remittances typically underestimate income flows (e.g. income and expenditures surveys like the NSB Household Budget Survey – HBS).
•Understandably, people are reluctant to talk to strangers about their personal finances.
•Ex. in the 2006 IOM survey, of 1,020 households that said they received remittances, only about 600 indicated an amount.
Remittances: Average remittances Remittances: Average remittances per remitting migrant (IOM Survey)per remitting migrant (IOM Survey)
0 500 1000 1500 2000 2500
Total
CIS construction
CIS other
EU
Other
Remittances in US$
2006 2008
•Average remittances in nominal US$ terms as indicated by respondents increased slightly.
•US$ 1,296 in 2006; US$ 1848 in 2008
•However, inflation in Moldova and the appreciation of the Leu have eroded most of these gains.
•Remittance levels strongly depend on the country the migrant is working in. They are highest for migrants in Europe and lowest for migrants in Russia or Ukraine
0% 20% 40% 60% 80%
CIS construction
CIS other
EU
Other
Use of formal transfer channels
2006 2008
Remittances: transfer channelsRemittances: transfer channels
•The use of formal transfer channels (money transfer operators, bank transfers) has grown further.
•Lack of information, complicated procedures,lack of trust in formal systems, lack of outreach in rural areas
•The share of migrants using primarilyinformal services (maxi taxi drivers,etc.) declined from 20.4 percent in2006 to 11.8 percent in 2008.
•Furthermore, a large proportion of informal transfers involve migrants taking money home personally, rather than using informal third-party services (maxi taxi drivers, etc.).
Main transfer channel
0% 20% 40% 60% 80% 100%
2008
2006
Formal (bank transfer/money transferoperator)Personal
Informal services (maxi taxi drivers, etc.)
Remittances: households dependenceRemittances: households dependence
In 56,2 % of households receiving remittances, the transfers account for more than 50% of the household budget (in rural areas the share is 58,3%).
1.3 million people (35 percent of the population) live in households that receive remittances.
Remittances take a big share in the overall income composition, 18 per cent.
Remittances useRemittances use
Most remittances are used for consumption needsMost remittances are used for consumption needs
Yet, there are also signs that households with remittances invest Yet, there are also signs that households with remittances invest more: Whereas only 15% of households without migrants have more: Whereas only 15% of households without migrants have savings which exceed US$ 500, this share is 29% for migrant savings which exceed US$ 500, this share is 29% for migrant households households
There are also signs that remittances promote financial sector There are also signs that remittances promote financial sector development as more migrant households have a current account development as more migrant households have a current account with a Moldovan bank (13 versus 8%) with a Moldovan bank (13 versus 8%)
Most of the households receiving remittances are saving, yet only Most of the households receiving remittances are saving, yet only 18.5 % of these are saved in bank accounts and less than 7 percent, 18.5 % of these are saved in bank accounts and less than 7 percent, are used to finance business investment.are used to finance business investment.
Poverty impact of migration/remittancesPoverty impact of migration/remittances
Migrant households are Migrant households are considerably less poor than non-considerably less poor than non-migrant householdsmigrant households
The poverty impact strongly The poverty impact strongly depends on the area of depends on the area of destination (largest for EU, destination (largest for EU, smallest for CIS con)smallest for CIS con)
Remittances reduced the Remittances reduced the national absolute poverty rates national absolute poverty rates by 11.3 percentage pointsby 11.3 percentage points
The impact is higher in rural areas, lowering the poverty rates by about 13.6 percentage points.
On macro level, remittances produced a decrease in poverty rates, as well as contributed to wages growth
Remittances: Impact on developmentRemittances: Impact on developmentBeyond poverty reductionBeyond poverty reduction
The effect of remittances on development remains a widely debated The effect of remittances on development remains a widely debated issue:issue:– Positive Positive : foster poverty alleviation, increase productivity and : foster poverty alleviation, increase productivity and
investments, promote economic development, investments, promote economic development, augment national augment national savings, ease foreign exchange constraints, improves the country savings, ease foreign exchange constraints, improves the country credit rating and access to financial markets, covering the foreign credit rating and access to financial markets, covering the foreign trade negative balance, creation of new jobs, small business trade negative balance, creation of new jobs, small business developed, bank deposits increased ease the credit crunch, developed, bank deposits increased ease the credit crunch, multiplier effects simply by increasing households income, multiplier effects simply by increasing households income, secondary demand effects (real estate) secondary demand effects (real estate)
– NegativeNegative: create dependency, wealth disparities, currency : create dependency, wealth disparities, currency appreciation, inflation, displace local jobs, higher import content of appreciation, inflation, displace local jobs, higher import content of consumption, consumption, encourage further migration and may cause labour encourage further migration and may cause labour shortages, shortages, forced consumption because of lack of investment forced consumption because of lack of investment opportunitiesopportunities. .
Remittances alone do not lead to development and economic growth, Remittances alone do not lead to development and economic growth, and their impact depends on micro- and macro-level factors of the and their impact depends on micro- and macro-level factors of the economies of host and home countries.economies of host and home countries.
– Therefore, migration cannot be considered to be a universal Therefore, migration cannot be considered to be a universal solution for addressing all developmental problems.solution for addressing all developmental problems.
Remittances. Policy issuesRemittances. Policy issues
Key Problems:- Private nature of remittances- Entrenched policy environment poses a problem, esp. in countries of origin
- many remittance senders and receivers remain outside the formal financial system - Financial access and financial literacy
Guiding Principles:- Be cognizant of the importance of ending the dependence on migration and remittances- Do not regard remittances as the key instrument on par with traditional forces like exports and FDI
Main Policy Directions:– Create a sound policy environment– Reduce transaction costs– Encourage productive use– Improve data collection on remittances
Because of the large role of remittances in reducing poverty at the household Because of the large role of remittances in reducing poverty at the household level, policies should not focus on migration prevention, but rather on helping level, policies should not focus on migration prevention, but rather on helping migrants to maximise the gains from migration.migrants to maximise the gains from migration.
Policy Recommendations by IOM. Policy Recommendations by IOM. Moldova’s experienceMoldova’s experience
Main policy directions of the Government:Main policy directions of the Government:
To create effective mechanisms for management and To create effective mechanisms for management and monitoring of migration flowsmonitoring of migration flows
To improve the reliability of migration and remittance data To improve the reliability of migration and remittance data and the capacity of the government to collect, share and and the capacity of the government to collect, share and apply such dataapply such data
To improve the knowledge and capacity of migrant workers To improve the knowledge and capacity of migrant workers and their families to channel and use their remittances for and their families to channel and use their remittances for productive investmentsproductive investments
To improve the linkages of the Government with DiasporaTo improve the linkages of the Government with Diaspora To improve remuneration of labour and a continued increase To improve remuneration of labour and a continued increase
of state guaranties in this areaof state guaranties in this area To promote voluntary return migration and reintegration To promote voluntary return migration and reintegration
programsprograms To create an enabling environment for SME growthTo create an enabling environment for SME growth To promote mobility of labour force/circular migrationTo promote mobility of labour force/circular migration
Conclude circular migration agreements with the main destination countries, similar to the one that was recently reached between the EU and Moldova:
- Certain professionals of Moldova to be offered facilitated access to labor market of interested EU member states;
- Migrant’s return to Moldova upon the end of legal stay will facilitate his/her subsequent migration to interested member states; and
- Circular migration can augment the positive effect remittances
have on economic growth.
Main challenge for Moldovan government: advocating for policies that benefit migrants and Moldovan society as whole, while taking into account sensitivities in host countries
Policy Recommendations by IOM. Policy Recommendations by IOM. Moldova’s experienceMoldova’s experience
Policies required to enhance the Policies required to enhance the productive use of remittances. productive use of remittances. Moldova’s Moldova’s experienceexperience
1.1. Encouraging the use of official transfer channels and increasing Encouraging the use of official transfer channels and increasing trust in banking institutions by improving financial literacy trust in banking institutions by improving financial literacy throughthrough public-private partnerships; public-private partnerships; consumers need to be educated about consumers need to be educated about existing remittances servicesexisting remittances services
2.2. Reducing informality, improving competition and reducing Reducing informality, improving competition and reducing transactions costs by:transactions costs by: i) i) expanding the intermediationexpanding the intermediation of banks, of banks, microfinancing agencies, credit and savings associations, post microfinancing agencies, credit and savings associations, post offices, in the remittances area and by ii) offices, in the remittances area and by ii) adopting new adopting new remittances-transfer technologies remittances-transfer technologies
3.3. Improving the terms of the payment and settlement system for Improving the terms of the payment and settlement system for money transfers to reduce the remittances transaction costsmoney transfers to reduce the remittances transaction costs
4.4. Engaging diaspora in homeland development by Engaging diaspora in homeland development by supporting business investment plans and partnerships with Diaspora
5. Facilitating linkages between remittances and financial services Facilitating linkages between remittances and financial services (loan(loan products linked to remittances e.g. mortgages; savings products linked to remittances e.g. mortgages; savings products with attractive interest rates, products with attractive interest rates, easing of credit policies)
Policies required to enhance the Policies required to enhance the productive use of remittances. productive use of remittances. Moldova’s Moldova’s experienceexperience
5. Implementing migrant outreach policy, stimulating confidence about homeland and building migrant partnerships
6. Matching remittances with other funding sources and orienting them on community development
7. Creating favorable regulatory and macroeconomic environment
8. Facilitating increased investment of migrant resources in SMEs by improving the SME regulatory and institutional framework, offering tax incentives, one stop shops, entrepreneurship trainingax incentives, one stop shops, entrepreneurship training
9. Improving data on remittances by expanding and improving remittance data collection practices, research, analysis, policies, and procedures
10. Improving the remittance providers services to the poor, Improving the remittance providers services to the poor, including via new products and technology including via new products and technology
National Strategy Documents adopted National Strategy Documents adopted following IOM policy advicefollowing IOM policy advice
EU – Moldova Action Plan (cooperation in justice EU – Moldova Action Plan (cooperation in justice and home affairs: migration issues) – and home affairs: migration issues) – implemented; new instrument being developedimplemented; new instrument being developed
National Return Action PlanNational Return Action Plan
National Strategy for Support and Development National Strategy for Support and Development of SMEs for 2008-2011of SMEs for 2008-2011
Mobility Partnership EU-MoldovaMobility Partnership EU-Moldova
National Return Action PlanNational Return Action Plan
Creation of incentives for return of Moldovan migrant workers.Main objectives:1. Provision of information on the job/business/social reintegration
opportunities in Republic of Moldova; economic empowerment progr. 2. Strengthening the links with Moldovan nationals abroad3. Provision of socio-economic reintegration services to returnees4. Developing entrepreneurship culture so as to attract remittances into
the productive areas: a) referring the beneficiaries of remittances towards the opportunities of launching a business; b) providing assistance and consultancy on launching and managing small businesses.
5. Enhancing the business environment and opportunities in rural areas: a) granting methodological support and contributing to attracting remittances for setting of up small, poultry and livestock farms; b) developing pilot-projects in rural tourism development, as well as other sectors, including projects for social infrastructure support (matching funds 1+1); private-public partnership mechanisms for funding infrastructure objects
6. Concluding agreements with post-office administrations from the countries of destination so as to facilitate the implementation of the “Electronic International Money Orders” service; developing and implementing the normative framework regarding monetary payment of the international money orders also in foreign currency (USD or EURO);
National Strategy for Support and National Strategy for Support and Development of SMEs for 2008-2011Development of SMEs for 2008-2011
Overall:Overall: improvement of the legislative and normative improvement of the legislative and normative framework that would be favorable for small and medium framework that would be favorable for small and medium enterprises’ establishment and developmententerprises’ establishment and development
Specifically on remittances:Specifically on remittances: Enhancing financial mediation within remittances Enhancing financial mediation within remittances
transfer options: transfer options: Training migrants-users of financial-banking services Training migrants-users of financial-banking services
regarding the provided services; regarding the provided services; Building capacity of the micro-financing organizations and of Building capacity of the micro-financing organizations and of
the Savings and Credit Associations with respect to provision the Savings and Credit Associations with respect to provision of remittances’ transfer services; of remittances’ transfer services;
Involving the “Post of Moldova” in the system of remittances’ Involving the “Post of Moldova” in the system of remittances’ transfer and payment in national and foreign currency; transfer and payment in national and foreign currency;
Setting up a scheme for loans’ guarantee based on Setting up a scheme for loans’ guarantee based on remittances.remittances.
National Strategy for Support and National Strategy for Support and Development of SMEs for 2008-2011Development of SMEs for 2008-2011
Adopting new technologies for remittances’ transfer: Adopting new technologies for remittances’ transfer: Setting up legal framework for facilitating and securing the Setting up legal framework for facilitating and securing the
remittances’ transfers through new technologies. remittances’ transfers through new technologies.
Implementing a pilot project on money transfer banking services Implementing a pilot project on money transfer banking services via cell phones;via cell phones;
Diversifying and improving financial services, increasing Diversifying and improving financial services, increasing competitiveness and reducing the costs of these services competitiveness and reducing the costs of these services (promoting ‘account on account’ system, ATM machine – (promoting ‘account on account’ system, ATM machine – remittances, internet payments e.g. PayPal) remittances, internet payments e.g. PayPal)
Developing and implementing the 2+1 Program for Remittances’ Developing and implementing the 2+1 Program for Remittances’ InvestmentInvestment
Improving accuracy of statistics and studies regarding migrants and Improving accuracy of statistics and studies regarding migrants and remittances; harmonizing and adjusting migration study methods remittances; harmonizing and adjusting migration study methods used by different involved institutionsused by different involved institutions
Mobility Partnership EU-MoldovaMobility Partnership EU-Moldova
Council of EU for JHA from 6-7 December 2007 - initiating the Council of EU for JHA from 6-7 December 2007 - initiating the dialogue with the Republic of Moldova to launch a pilot mobility dialogue with the Republic of Moldova to launch a pilot mobility partnershippartnership
Concept of “mobility” is becoming a key element for the Concept of “mobility” is becoming a key element for the development of the EU migration management strategiesdevelopment of the EU migration management strategies
Mobility partnership represents an overall political frameworkMobility partnership represents an overall political framework Aim: develop a balanced partnership with third countries Aim: develop a balanced partnership with third countries
adapted to specific EU Member States' labour market needsadapted to specific EU Member States' labour market needs Broad, tailor-made and balanced agreement and include Broad, tailor-made and balanced agreement and include
elements of mutual interest for Moldova and EU: legal migration, elements of mutual interest for Moldova and EU: legal migration, fight against illegal migration, migration and development, fight against illegal migration, migration and development, circular migrationcircular migration
The parties to a mobility partnership, on the EU side, include The parties to a mobility partnership, on the EU side, include both the European Community and Member States willing to both the European Community and Member States willing to participate in and contribute to it.participate in and contribute to it. Czech Republic is part to the Czech Republic is part to the MPMP
Mobility Partnership EU-MoldovaMobility Partnership EU-Moldova
Specifically on remittances:Specifically on remittances:
Enhancing the cooperation with Moldovan communities abroad, strengthening the links with the diaspora and reaching out for its support;
Working on the financial sector to create the conditions for boosting the diaspora's investment in their home country through twinning projects, loan and transfer facilitation and targeted remittance schemes enhancing the development impact of migrant workers' money transfers;
Proposal by Romania together with the Veneto Region in Italy to design a Financial Instrument for Self-Employment and Small Business Development with a view to encouraging migrants to invest remittances, particularly in local communities, and to return to the Republic of Moldova.
Proposal by Germany to extend the remittances website www.geldtransfer.de. launched as part of the G8 Conference on Remittances in late November 2007 in Berlin.
Proposal by Sweden to facilitate exchange of experience and study visits on development policy (including policy training on remittances).
EC Aeneas Remittances ProjectEC Aeneas Remittances Project
EC Aeneas Project “EC Aeneas Project “Beyond Poverty Alleviation: Developing Beyond Poverty Alleviation: Developing a Legal, Regulatory and Institutional Framework for a Legal, Regulatory and Institutional Framework for Leveraging Migrant Remittances for Entrepreneurial Growth Leveraging Migrant Remittances for Entrepreneurial Growth in Moldova”in Moldova”
Main activities, aimed at enhancing the impact of Main activities, aimed at enhancing the impact of remittances on economic development by facilitating remittances on economic development by facilitating increased investment of migrant resources in SMEs:increased investment of migrant resources in SMEs:
1.1. Development of a National Remittances ProgrammeDevelopment of a National Remittances Programme2.2. Capacity Building for the Ministry of Economy and TradeCapacity Building for the Ministry of Economy and Trade3.3. Improving Remittances Data CollectionImproving Remittances Data Collection4.4. Improving Financial Literacy of Migrant Workers and their Improving Financial Literacy of Migrant Workers and their
FamiliesFamilies5.5. Facilitation of Linkages of Remittances with Financial Facilitation of Linkages of Remittances with Financial
ServicesServices6.6. Building Bridges with DiasporasBuilding Bridges with Diasporas
