Financial Education in the Commonwealth and Independent States (CIS): Launch of the OECD-Russia Technical Assistance Project

FINANCIAL EDUCATION IN THE COMMONWEALTH AND INDEPENDENT STATES (CIS)

LAUNCH OF THE OECD/INFE TECHNICAL ASSISTANCE PROJECT

Moscow, 29 June 2017

With sponsorship from and in co-operation with the Ministry of Finance of the Russian Federation

A. Relevance of financial literacy policies

B. An introduction to the OECD/INFE

C. The programme to support financial literacy in Eurasia

D. OECD/INFE tools on financial education and literacy

E. A draft timeline

F. Country-specific action plans

A. RELEVANCE OF FINANCIALLITERACY POLICIES

Financial empowerment and education

can benefit all stakeholders

Enabling tools are needed to avoid negative spill overs

Individuals and SMEs may face exclusion, over

indebtedness, fraud & mis-selling (reducing

trust)

The financial industry can miss market

opportunities if people avoid interacting with

financial services

Governments may find that the remedy to poor financial decisions is

more costly than prevention

There have been many changes to the financial landscape

More inclusive in some ways, but there is room

for improvement

People faceuncertain futures and

more individual responsibility

Technology has an increasing role

Low knowledge of key financial concepts

Understanding the basic concept of compound

interest

Recognising the benefit of risk diversification

Difficulty in several areas of financial behaviours

Low use of formal financial services

Insufficient planning ahead for both

unexpected life events and retirement

Use of, and reliance on (often high-cost) credit

Groups at riskand in need

young

elderly population

women

low income

Migrants

MSME

What the evidence shows: financial literacy is low

globally (OECD/INFE 2015/6 surveys, OECD PISA, 2012,15)

On average, 56% of adults across 30 participating countries

achieved the minimum target score of at least 5 out of 7

Many adults are currently unable to reach the

minimum target score on financial knowledge

38%45% 55%

56%62%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Sou

th A

fric

a

Mala

ysia

Bri

tish V

irg

in I

sla

nds

Bela

rus

Th

aila

nd

Alb

an

ia

Russia

n F

ed

era

tion

Cro

atia

Jord

an

United K

ingd

om

Bra

zil

Czech R

ep

ublic

Pola

nd

Georg

ia

Avera

ge, all

countr

ies

Tu

rkey

Fra

nce

Hun

gary

Belg

ium

Lithuan

ia

Port

ugal

Can

ada

Ave

rag

e,

OE

CD

co

un

trie

s

New

Zea

lan

d

Neth

erland

s

Austr

ia

Latv

ia

Norw

ay

Fin

land

Esto

nia

Kore

a

Hon

g K

ong (

Chin

a)

B. INTRODUCTION TO THE OECD/INFE

INFE created in 2008

115 economies approx 250 public

authorities

A technical committee

An advisory board

Outreach to other communities through

INFE Research Committee

Partnerships with NGOS and

private sector

Global and regional policy platforms and

roundtables

Asia

Latin America

Eurasia (CIS)

OECD/International Network on Financial Education (INFE)

Project on Financial Education

Work started in 2002. Serviced by 2 OECD Committees

→ International Gateway for financial education

For more : www.financial-education.org

•A process by which individuals through information, instruction and/or objective advice :

• Improve their understanding of financial products and concepts• Develop the skills and confidence• Become more aware of financial risks

and opportunities

• Make informed choices, to know where to go for help, and take other effective actions

• To improve financial wellbeing

Financial education (OECD, 2005; G20, 2012)

• A combination of awareness, knowledge, skill, attitude and behaviour necessary to make sound financial decisions and ultimately achieve individual financial well-being

Financial literacy (OECD; G20, 2012)

What do we mean by financial education and

financial literacy?

Financial education is one part of a multi-dimensional

approach to financial empowerment

FinancialEducation

Financial Consumer Protection

FinancialInclusion

G20 (2010) Principles

for Innovative Financial

Inclusion

G20 (2011) High-Level

Principles on Financial

Consumer Protection

developed by the OECD

OECD/INFE(2012)

High-Level Principles on

National Strategies for

Financial Education

C. THE CIS PROJECT: OBJECTIVES AND WORK STREAMS

Dedicated technical assistance to design, implement and review evidence-based financial education strategies and policies in Eurasia

Six countries will be covered : Armenia, Azerbaijan, Belarus, Kazakhstan, Kyrgyz Republic and Tajikistan

The Ministry of Finance of the Russian Federation is financially supporting these activities as a follow–up to its G20 Presidency and the Russian Trust Fund on Financial Literacy and Education

The project is an integral part of the OECD/INFE programme on financial literacy and education focusing on implementation and impact assessment issues

The CIS project : Framework and objectives

1• Collecting and analysing data using the OECD/INFE

toolkit

2• Building and supporting effective national strategies

using the OECD/INFE principles and policy handbook

3• Addressing youth’s needs for financial literacy

4• Addressing migrants and their families needs

The project includes four work streams

D. THE OECD/INFE FINANCIAL EDUCATION

POLICY AND PRACTICAL TOOLS TO SUPPORT THIS PROJECT

Survey instrument to capture financial literacy…

• …a combination of awareness, knowledge, skill, attitude and behaviour necessary to make sound financial decisions and ultimately achieve individual financial well-being

…in a representative sample of adults, and available in a Toolkit

• Questionnaire (core) and optional questions

• Methodological notes; Interviewer briefings

G20 Leaders welcomed and supported its use in 2013

and G20 Report in 2017

It was updated in 2015 to include new areas

1. Data collection: OECD / INFE tool to measure

financial literacy and financial inclusion

http://www.oecd.org/daf/fin/financial-education/2015finlitmeasurementexercise.htm



2.1. Building effective

National Strategies (NS) for Financial Education

2012High-level Principles

endorsed by G20 Leaders

and supported by APEC Ministers of Finance

2013Publication on NS

status in G20 economies

welcomed by G20 Leaders

2015Policy handbook on the implementation of NS

16

Guidelines on private

and not-for-profit

stakeholders in financial

education

Specifictarget

groups and areas

Data collection to assess

needs

Impact evaluation

Role of stake-holders

Corecompetenciesframework(s)

2.2. Various areas of work, consistent with

OECD/INFE work on national strategies

Women

Young people / schools

Financial inclusion

MSMEs

Long-term savings and investments

Fact-finding stock take of programme evaluation amongst INFE members and a Framework for evaluation

INFE High-level Principles on the Evaluation of Financial Education Programmes

Two OECD/INFE Guides to evaluation

18

2.3. Supporting materials: OECD/INFE research and

tools on evaluation

5 Principles

• Evaluate new progs

• Budget for evaluation

• Design the evaluation in

accordance with the

objectives and type of

programme

• Use external evaluators

if possible

• Report what worked,

and what didn’t work

3. Addressing youth’s needs:

OECD/INFE policy and practical tools

PU

BL

ICA

TIO

N

&L

EA

FL

ET

2014 Rationale for

financial education in schools

Comparative report

Guidelines on financial education in schools

Learning Framework

2005 - OECD Recommendation:

“Financial education should start at school”

Supported by the Russian Trust

fund on financial literacy and education

G20 core competency on financial literacy for youth

provides a benchmarks of what young people age 15-18 y-old should

know, be able to do and are willing to do in a financial context

PISA Financial literacy

results, 2012

Next exercises 2015, 18

Core competencies

on financial literacy for

adults called for by G20 Leaders

in 2013 and delivered in

2016

Report and checklist on

financial education for migrants and their families delivered to G20 in 2015

Report and guidance on

women and girls financial literacy

endorsed by G20 leaders in

2013

4. Tools to support financial education for target

audiences, including migrants and their families

E. PROJECT ACTIVITIES AND INDICATIVE TIMELINES

The survey will be based on the (2015) edition of

OECD/INFE toolkitreviewed and adapted to

take into account the specificities of the countries

and populations participating in the

exercise.

Work stream 1:

Collecting and analysing evidence

NOW:

• Meet relevant stakeholders

• discuss challenges and initiatives

• Approve country Action Plans

Q2 2017

• Revise survey instrument and guide for interviewers

Q3/4 2017-2018

• Dedicated workshop in September 2017 in Minsk

• Implement survey

2018/19

• Analyse survey results to refine the national strategy

• Comparative report on Eurasia

• Regional database on financial literacy and inclusion


NOW

• Fact-finding missions

• Consultation with key stakeholders

• Approve country Action Plans

2017

• A report mapping initiatives on financial education in each country

• A regional workshop on 19-20 Septemberin Minsk

3-4 Q 2018

• A regional workshop and INFE peer review

• A report and guidance to refine, review the NS and its key components

2019

• Follow up on the NS implementation and evaluation

• Design of action plans/ specific initiatives

Work stream 2: Building/supporting effective national

strategies (NS) adapted to countries’ circumstances

Building on OECD/INFE work and consultation with stakeholders, it aims to support the

design, implementation and review of national strategies for financial

education

2017

• collect information: needs of young people, education systems, possibilities for extra-curricular

• meet with relevant authorities including ministry of education

2018

• A regional workshop in Q1-2 (possibly in Armenia)

• detailed policy handbook based on core competencies including specific countries’ recommendations

• Pilot in 1 country

2019

• Review of implementation of recommendations in countries

• Results of the pilot

• A regional workshop (possibly in the Kirghiz Republic/Kazakhstan)

Work stream 3:

Addressing youth’s financial literacy needs

This work stream will involve country and regional activities/implementationwith a view to supporting the implementation of effective financial literacy programmes for young people in and out of schools

2017

• Data collection using desk research and fact-finding mission in countries

Q1/2 2018

• A dedicated workshop(possibly in Tajikistan)

2018/9

• Report and recommendations on ways to improve financial literacy and wellbeing of migrants and their families in Eurasia

• Review of implementation with competent authorities

Work stream 4: Addressing Migrants and

their families’ financial literacy needs

Building on the OECD/INFE report and checklist, this work stream will seek to address the particular needs of migrants and their families for financial literacy and protectionthrough dedicated research and activities.

http://www.oecd-ilibrary.org/finance-and-investment/financial-education-for-migrants-and-their-families_5js4h5rw17vh-en

29 June 2017 Moscow, Russia

High-levelroundtable

19-20 Sept 2017

Minsk, Belarus High-level

conference with key stakeholders in CIS (back to

back with technical

workshop on NS and

measurement)

2018Technical workshops 1/2H

(schools, migrants)

Conference/Workshops in Moscow 4/5 October

(NS and measurement)

2019 High-level

conference and technical workshop (youth) to

disseminate the results and explore future

regional cooperation

Events to support the

development and dissemination of the project

F. COUNTRY-SPECIFICACTION PLANS

Suggested project contributions to financial literacy

Project

component

ArmeniaDeliverable Timeline

1) Collect

evidence on

financial

literacy

2) National

Strategy for

Financial

Education

Survey to assess adults‘ financial literacy

• Data collection using OECD /INFE toolkit

• Questionnaire adapted to local context / booster samples

Use of survey findings for policymaking

• Inform NSFE and FL initiatives, analysis at local level, regional DB

Two regional workshops

• Measurement of financial literacy (Minsk 19-20 Sep. 2017)

• Presentation of survey results (Moscow, Oct. 2018)

2017 (H2)

2018 - 2019 (H1)

2017 (H2) - 2018 (H2)

Roadmap to support assessment/revision of NSFE

• In cooperation with Central Bank of Armenia

Two regional workshops on NSFE development/implementation

• Minsk (19-20 Sep. 2017), Moscow (4-5 October 2018)

2017 (H2) - 2019 (H1)

3) Financial

literacy in

schools/

youth

Policy handbook on financial education in schools/youth

• Core competencies, ToT, pedagogical tools

Pilot programme on FL in selected schools and impact assessment

• Depending on interest and feasibility

Two regional workshops on integrating FE in schools

• 2018 (H1 – possibly in Armenia) and 2019 (H1)

2017 (H2) – 2019 (H1)

2017 (H2) - 2018 (H1)

2018 (H1) – 2019 (H1)

4) Financial

literacy for

migrants

Regional report on migrants’ FL needs

• Including Armenian case

Pilot programme on FL for migrants


One regional workshop on FE for migrants and their families

• 2018 (H1)

2018 (H1) – 2019 (H1)

2018 (H1)

2017 (H2) – 2019 (H1)

2017 (H2) – 2019 (H1)


Project

component

AzerbaijanDeliverable Timeline

1) Collect

evidence on

financial

literacy

2) National

Strategy for

Financial

Education








• Presentation of survey results (Moscow, October 2018)

2017 (H2)

2018 - 2019 (H1)

2017 (H2) - 2018 (H2)

Roadmap to support implementation of NSFE by CBAR

• Developing effective coordination mechanism with stakeholders


• Minsk (19-20 Sep. 2017), Moscow (October 2018)

2017 (H2) - 2019 (H1)

3) Financial

literacy in

schools/

youth




• 2018 (H1) and 2019 (H1)

2017 (H2) – 2019 (H1)

2017 (H2) - 2018 (H1)

2018 (H1) – 2019 (H1)

4) Financial

literacy for

migrants


• Including Azeri case


• 2018 (H1)

2018 (H1) – 2019 (H1)

2018 (H1)


Project

component

BelarusDeliverable Timeline

1) Collect

evidence on

financial

literacy

2) National

Strategy for

Financial

Education









2017 (H2)

2018 - 2019 (H1)

2017 (H2) - 2018 (H2)

Roadmap to support assessment/revision of NSFE1

• In cooperation with National Bank of Belarus



2017 (H2) - 2019 (H1)

3) Financial

literacy in

schools/

youth



Pilot programme on FL in selected schools and impact assessment



• 2018 (H1) and 2019 (H1)

2017 (H2) – 2019 (H1)

2017 (H2) - 2018 (H1)

2018 (H1) – 2019 (H1)

4) Financial

literacy for

migrants


• Including Belarusian case


• 2018 (H1)

2018 (H1) – 2019 (H1)

2018 (H1)

1. Joint Action Plan on Enhancing Financial Literacy of the Population of the Republic of Belarus for 2013-2018

2017 (H2) – 2019 (H1)


Project

component

KazakhstanDeliverable Timeline

1) Collect

evidence on

financial

literacy

2) National

Strategy for

Financial

Education









2017 (H2)

2018 - 2019 (H1)

2017 (H2) - 2018 (H2)

Roadmap to support implementation and evaluation of NSFE1

• Including recommendations for NSFE from 2019 onwards


• Minsk (19-20 Sep. 2017), Moscow (October, 2018)

2017 (H2) - 2019 (H1)

3) Financial

literacy in

schools/

youth




• 2018 (H1) and 2019 (possibly in Kazakhstan)

2017 (H2) – 2019 (H1)

2017 (H2) - 2018 (H1)

2018 (H1) – 2019 (H1)

4) Financial

literacy for

migrants


• Including Kazakh case


• 2018 (H1)

2018 (H1) – 2019 (H1)

2018 (H1)

1. National programme for improving the financial literacy of the population 2016-2018


Project

component Deliverable Timeline

1) Collect

evidence on

financial

literacy

2) National

Strategy for

Financial

Education









2017 (H2)

2018 - 2019 (H1)

2017 (H2) - 2018 (H2)

Roadmap to support assessment and revision of NSFE

• In cooperation with National Bank of the Kyrgyz Republic


• Minsk (19-20 Sep. 2017), Moscow (October, 2018)

2017 (H2) - 2019 (H1)

3) Financial

literacy in

schools/

youth




• 2018 (H1) and 2019 (possibly in Kyrgyz Republic)

2017 (H2) – 2019 (H1)

2017 (H2) - 2018 (H1)

2018 (H1) – 2019 (H1)

4) Financial

literacy for

migrants


• Including Kyrgyz case


• 2018 (H1)

2018 (H1) – 2019 (H1)

2018 (H1)

Kyrgyz Republic


Project

component Deliverable Timeline

1) Collect

evidence on

financial

literacy

2) National

Strategy for

Financial

Education









2017 (H2)

2018 - 2019 (H1)

2017 (H2) - 2018 (H2)

Roadmap to support design of NSFE

• Assess needs, governance, objectives, targets



2017 (H2) - 2019 (H1)

3) Financial

literacy in

schools/

youth




• 2018 (H1) and 2019 (H1)

2017 (H2) – 2019 (H1)

2017 (H2) - 2018 (H1)

2018 (H1) – 2019 (H1)

4) Financial

literacy for

migrants


• Including Tajik case


• 2018 (H1), possibly in Tajikistan

2018 (H1) – 2019 (H1)

2018 (H1)

Tajikistan

34

THANK YOU!

www.oecd.org/finance/financial-education-CIS.htm

www.oecd.org/finance/financial-education

www.financial-education.org

Contact details:

[email protected]

[email protected]

[email protected]

[email protected]

http://www.oecd.org/finance/financial-education-CIS.htm

http://www.oecd.org/finance/financial-education

http://www.financial-education.org/

mailto:[email protected]




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Financial Education in the Commonwealth and Independent States (CIS): Launch of the OECD-Russia Technical Assistance Project