2.  Despite that technology, social values and material resources have increasingly spread out across nations, foreign labor mobility continues to face inequities unique to its condition.  Development, a condition that brings opportunities of prosperity for all, continues to lack in the context of international labor migration.  This reality is even more significant given the fact that there are intersecting spaces where migration connects with development, either during departure, at the time of migration or upon return.  Take the migration process, immigrants and families participate in a value chain that has important implications for development because they promote prosperity through market expansion, access, or asset building (through remittances).

3. Engagement Immigrant economic activity i)Host countryi)Intermediationi)Home country Activity associated to … Family remittances The decision to remit a share of the workers’ income the work of remittance service providers Effect of remittances on family household economics Entrepreneurship the decision to create or maintain a minority owned business the enabling environment to form a business Creating a micro or small enterprise by an immigrant or family member in homeland Investment The effort to allocate capital for a particular investment or business venture the investment environment Allocating capital for a particular asset or venture in the hometown Philanthropy Raise funds to donate to the hometown Transfer and donation implementation mechanisms Funds received and projects implemented Consumption Consume home country goods or services related to the homeland Supply chain of products and services Production chain of home country goods Knowledge transfer Information and skills acquired as development tools Institutions forming skills in the knowledge economy Methods to share information, knowledge and skills that enhance local and national development

4.  But such process does not occur evenly and without substantive economies of scale. There are market and policy failures inherent to an inequitable treatment of migrant labor.  To that effect is important to identify solutions that integrate market and policy strategies into migration livelihood as a matter of ensuring equity among migrants and families.  These problems deal with poor regulations, competition, among other issues, but there is now a wide range of lessons on solutions that can be brought to scale.  The experience of remittances as it intersects with development is one important case

5. Policy Issue Immigrant economic activity Policy problem interpretation (what to make out of the issue) Policy approach (how to address the issue) Policy initiatives (what has been done so far) Impact A.Remittances marketplace Regulatory environment: barriers to entry, foreign currency deposits; AML, and other rules Barriers to entry Regulatory or policy reform Laws on exclusivity, regulations allowing non-banking to perform transfers; RSP operating costs drop; Financial access increases Type of intermediaries: licensed- unlicensed Strong informal networks Lower operating costs Introduce easier licensing; Small businesses are formalized or disappear Market intermediation: competition on the payout Uncompetitive markets with expensive transactions Increased competition Bring new players, streamline technologies; Cost of remitting drops 3% in 3 years A.Remittances and Financial inclusion issues Savings capability, money management and financial access At least half of recipients hold (an average of US$600) savings but do so informally Financial inclusion: financial advising; products; Accessible technologies Financial education; Product designed; Front end electronic instruments Savings mobilization among 20% through education; Banking services to remittance recipients: scope (loans, payments, savings) and depth (geographic dispersion) Two thirds of recipients do not hold bank accounts or own other financial products Financial access: increase presence of banking institutions; target population Market new products; Confidence building Increased bank account ownership or new products among recipients by commercial banks, credit unions, MFIs, postal offices; A.Entrepreneurship and Investment Migrant and Family Entrepreneurship Initiatives Barriers to entry Financial access through credit; Business advice Value chain integration; Business partnerships Formalization of businesses with up to 10 new jobs; increased revenues Migrant capital investment (ventures, bonds, etc.) Barriers to entry Access to partners, investment funds, and other vehicles Matching small investment programs; Bonds Limited to few investments and capital raised Other economic activities Migrant and Diaspora Philanthropy Disconnected with development goals Partnerships; Technical assistance to improve project design Matching programs Improved local development impact from no more than 20 projects with limited scope Migrant home country goods consumption Business and distribution networks are limited Value chain integration; Technical advice; partnership promotion Technical assistance to improve quality; Assistance to access to wider markets Increase output and distribution by 20% among those benefiting

6.  Remittances are instrumental to financial access in a number of ways:  Because the cash transfer is typically relying on a financial institution, people are accessing the system;  The flow of money increases disposable income which in turns increases savings;  The management of income improves decision making in ways that facilitates financial access (people have needs); The instrumental role of remittances can thus be leveraged to further financial inclusion in at least four ways:  Expanding payment networks through a wide range financial institutions or instruments  Ensuring payment networks are cost efficient;  Ensuring that remittance recipients are able to mobilize the savings they accrue into accessible, open and regulated institutions;  Enabling tools that motivate (pull) recipients to access and use a range of financial products needed to increase assets.

7.  Although many people who receive remittances are able to save, a small share do so in the financial system. There is a substantial wealth that is in the informal economy; Amount received in remittances Region Country People who save (%) Formally saving (%) Do not saveSave(US$) Amount of savings Caucasus Georgia487.3400033001500 Azerbaijan802350546276150 Armenia4717.2351741862468 Moldova7219216751791478 Central Asia Tajikistan3332.317472299498 Kyrgyzstan3814.3174422441636 Uzbekistan423122952300980 Africa Morocco6621.385012001749 Senegal533.126001800206 Latin America and Caribbean Guatemala694030364107900 Jamaica7965219238991455 Mexico5911.924313190650 Nicaragua4317.427353509500 Paraguay6318.89631363250

8.  Through Dialogue programs, over 200,000 people in 13 countries worldwide have received financial education that promotes budgeting, saving, and the informed use of financial products.  From April through November 2013, the Dialogue carried out a Financial Literacy Project in Mexico. The project, which was implemented in partnership with La Asociación Mexicana de Uniones de Crédito del Sector Social (AMUCSS), provided financial counseling to over 9,000 people in five Mexican states, encouraging money management, formal savings, and the informed usage of financial products and services.  Approximately 25% of people who received the financial counseling went on to acquire a financial product, and 40% said they plan on using the new savings methods they have learned.  The project attracted over MX$4,628,760 (US$352,807) in deposits. Participants also purchased over MX$94,079 (US$7,170) in insurance and MX$9,951,372 (US$ 758,500) in credit. Number of New Transactions New checking accounts New savings accounts Savings account deposits or reactivations New CDs New Children’s Accounts New Loans New Insurance Policies 339176611342025861226755 % of Total23%3%12%1%3%36%22% New Financial Activities among Clients (Numbers and Percentages), 2013

9.  Individual financial counseling to migrants and remittance recipients  Partnerships with local banks, credit unions or MFIs.  Use of pedagogical tool on money management;  Strategy that forms, informs and transform;  Data tracking method to profile financial behavior;  This approach has proven successful in promoting financial empowerment and inclusion among participants.  The partnership with local financial institutions facilitates saving in the formal financial system, which offers important benefits for individuals and societies alike.  The Dialogue model promotes savings mobilization by transforming transactional clients, such as migrants and remittance recipients, into bank account deposit holders.