The ILO approach and experience in financial education HAMED Yousra OECD... · The ILO approach and experience in financial education ... The ILO experience in Financial education

The ILO approach and experience in financial education

Asian Seminar on Financial Literacy and Inclusion: Addressing the upcoming challenges

Cebu, Philippines, 11-12 Sept 2012

Monday, September 10, 2012

Outline


Outline

• Why does the ILO talk about migration? The ILO rights-based approach on labour migration


Outline



Outline


• Financial education as a mean to fulfil the rights-based approach


Outline




Outline



• What makes a migrant worker different?


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Outline




• Outreach and delivery mechanisms: the ILO experience


The rights-based approach to labour migration

Core principleThe key to the effective protection of migrant’s rights lies in

effective governance and regulation of migration

A mandate given to the ILO since its foundation in 1919:(ILO Constitution)

Reaffirmed by the Philadelphia Declaration, 1949


The foundation of the rights-based approach: International labour standards

The international instruments guaranteeing human rights, including the rights of migrant workers:

- Universal Declaration of Human Rights (UN General Assembly, 1948)- International Convenant on Economic, Social and Cultural Rights

(UN General Assembly, 1966)- International Covenant on Civil and Political Rights (UN General

Assembly, 1996)

The ILO instruments applicable to migrant workers:

- Core labour standards or fundamental conventions which apply to all persons, including migrant workers

- Labour standards which apply to all workers in the workplace- Instruments dealing specifically with migrant workers


Policy measures targeting migrant workers and their families

• Objective:Strengthen the capacity of migrant workers and their

households to make informed and rational choices about the use of remittances, leading to poverty alleviation

• Through:Transparency of informationCustomer protectionFinancial inclusion, incl. financial educationFinancial and non financial incentives for investments


• Conventions 97 and 143:• «migrant workers have the right to transfer (part of) their earnings and

savings through their preferred channel…”

• Multilateral framework for rights-based approach to labour migration (Migration – International Labour Conference 2004)

• “the contribution of labour migration to employment, economic growth, development and the alleviation of poverty should be recognized and maximized for the benefit of both origin and destination countries” (Chapter IX).

• 2004 ILC Resolution, General discussion on migrant workers (par. 17):

• “Promotion of policies that maximize the contribution of migration to development is another essential component of a comprehensive policy to address the global context of migration. Among urgent required components are measures to reduce the costs of remittance transfers as well as developing incentives to promote productive investment of remittances.”

Financial education as a mean to fulfill the rights based approach - Remittances as a Migrant workers’ right


WHAT DO WE DO? EXPECTED OUTCOMES DEVELOPMENT OBJECTIVE

• Development / adaptation of FE materials addressing needs of diverse target groups and contexts

•Training of trainers

•Training/counseling or (mass)media campaigns to equip target groups with financial knowledge, skills and tools

•Impact assessments to refine models

•Workers, entrepreneurs, migrant workers & their families, farmers, families with working children, youth

•make informed decisions about

•earning, spending, savings, borrowing, using insurance, money transfers and other services

•Workers, entrepreneurs, migrant workers & their families, farmers, families with working children , youth... have:

•built their assets

• engaged into and taken advantage of income generating activities; or invested their wages

•protected themselves against risks (i.e. health, accident, disaster, over-indebtedness…)

SFP Financial educa)on (FE) interven)on model

•FSPs offer credit, savings, insurance, money transfers and other products that meet the needs of target groups

•Technical assistance to Financial Service Providers (FSPs) for them to assess needs of clientele/target groups and develop relevant products

• Capacity building of FSPs to improve their performances and better manage products diversification

Possibly combined with other support services (skills, BDS, migration) for a greater impact

Contribu)ng to Financial inclusion for social jus)ce

Enhancing financial capabili)es of target groups

In parallel strengthening the provision of financial services


Migrant workers are not a homogenous group:• Different literacy and numeracy levels• Different habits on sending money home• Different aims: consumption – investment – community

development • Different level of financial inclusion in the host country and

for the family in the country of origin• Different legal situation and levels of vulnerability• Difference in the nature of migration: circular, 1st, 2cd ..

generation• …..

What makes a migrant worker different?


The ILO experience in Financial educationFinancial education for migrant workers and their families: Trainers’ manual and Smart guide, Cambodia and IndonesiaIn English, Bahasa Indonesia, Khmerhttp://www.ilo.int/asia/whatwedo/publications/WCMS_171658/lang--en/index.htm

Financial education: Trainer’s manual, Cambodiain English, Khmer, Mongolian, Bahasa Indonesiahttp://www.ilo.org/wcmsp5/groups/public/---ed_emp/---emp_ent/documents/publication/wcms_116165.pdf

Financial education for youth: Trainers’ manual and Trainee’s guide, NepalIn English and Nepalihttp://www.ilo.org/wcmsp5/groups/public/---asia/---ro-bangkok/---ilo-kathmandu/documents/publication/wcms_153904.pdf

Building financial capability for the vulnerable households: A manual for individual training / counseling sessions in English and Romanian

Pocket Full of Change: Financial Education for Youth Trainer’s ManualIn English and Bahasa Indonesia

Financial education for migrant workers in Europe and their families in West AfricaIn French


http://www.ilo.int/asia/whatwedo/publications/WCMS_171658/lang--en/index.htm








http://www.ilo.org/wcmsp5/groups/public/---ed_emp/---emp_ent/documents/publication/wcms_116165.pdf








http://www.ilo.org/wcmsp5/groups/public/---asia/---ro-bangkok/---ilo-kathmandu/documents/publication/wcms_153904.pdf










Tools that have been adapted taking into consideration :

-Target groups:• For youth: Nepal, Indonesia• For women: Cambodia Mongolia, Indonesia• For migrants and their families: Sénégal, Moldavia, Indonesia et Cambodia• For MFI clients: Vietnam, Honduras, Cambodia• For insurance compagnies clients: Kenya, Brasil, Colombia

- Distribution channels:• Through financial institutions– MFIs, Banks, but also insurance compagnies• Through NGOs, SMEs service providers• Through public bodies• Using the mass media


What results?

Some results for the experience in Moldova:On the question on the use of savings, almost all beneficiaries

understood at least 2 savings products and they knew which question to ask regarding deposit and savings accounts

74% understood main questions to ask while requesting a loan and 84% adopted the good practises to build a financial plan for their families

Microfinance for Decent Work Action Research:Results based on RCTs and econometrical analysis for Cambodia (FE

to loan officers of an MFI or directly to clients), and Vietnam (client training) showed strong impact on financial attitude, on repayment behaviour of clients, significant and positive impact on clients association if savings and security, on handling of debt..

Final results are to be shared soon: http://www.ilo.org/employment/areas/social-finance/WCMS_168033/lang--en/index.htm


Overview of the training modules for Senegal

Introduction and methodology

Set objectives and communicate well among the family (3 sessions, 250 min)

Manage your budget wisely (5 sessions, 395 min)

Use financial services and products (6 sessions, 545 min)

Knowing and using financial institutions (5 sessions, 375 min)

Using insurance and managing risk (4 sessions, 385 min)


Exemple du module B sénégalais




Delivery principles

A modular approach: the training can be offered as a whole on a one week training …

… but can also be tailored to the needs of the target population based on a selection of modules …

… and adapted to mass media


Different options for delivery

Group/collective option: Build networks of trainers : •MFIs and banks, •Public institutions, •Leaders of migrants associations,•Civil society (trade unions…)

Mass option: Use of other delivery channels•Radios (for instance community radios) •CD/DVD using the national languages (telenovelas…), •Applications for mobile devices,•Internet (podcasts…).


Few challengesContinue adapting eventhough the key messages don’t change

Measure the impact

Sustainability

Financial education requires a global approach (with the use of different delivery channels) thus based on partnerships and shared respnsabilities


Thank you!

Yousra HAMED [email protected]

Social Finance Programme of the ILO

www.ilo.org/socialfinance


mailto:[email protected]

mailto:[email protected]

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The ILO approach and experience in financial education HAMED Yousra OECD... · The ILO approach and experience in financial education ... The ILO experience in Financial education