Interpretation and Enabling Institutions Strengthening the business sector and entrepreneurship in developing countries United Nations October 5, 2006 Natasha Iskander Assistant Professor of Public Policy New York University
Diasporas and Development
Private debt and portfolio equity FDI ODA Recorded remittances 10 countries Remittance flows Source: World Bank. Global Economic Prospects 2006
Transnational Labor Markets How do you promote business development and entrepreneurship in this context?
Transnational Institutions Institutions for business development in transnational labor markets: Institutions for business development in transnational labor markets: Financial services Financial services Infrastructure Infrastructure Knowledge Knowledge Political stake/voice Political stake/voice
Transnational Institutions Institutions for business development in transnational labor markets: Institutions for business development in transnational labor markets: Financial services BCP du Maroc Financial services BCP du Maroc Infrastructure Infrastructure Knowledge Knowledge Political stake/voice Political stake/voice
Interpretive engagement What is it? What is it? Collaborative interpretation Collaborative interpretation Process of generating new knowledge about transnational fields Process of generating new knowledge about transnational fields Why do we need it? Why do we need it? Unmapped transnational fields Unmapped transnational fields New institutions that perform different functions, based on different assumptions New institutions that perform different functions, based on different assumptions
La Banque Centrale Populaire Moroccan state bank Moroccan state bank Has served emigrants since 1969 Has served emigrants since 1969 Successful bancarization of emigrant clientele Successful bancarization of emigrant clientele Tailor-made transfer, savings, and investment products Tailor-made transfer, savings, and investment products Bank of the Moroccans of the World
BCP and emigrant deposits Fuente: FMI; BCP BCP Moroccan Emigrant Deposits as a Share of Total National Deposits,
Strategy of Accompaniment Repeated cycles of interpretive engagement Repeated cycles of interpretive engagement –1969: Operation Moroccan Workers Abroad –1980s: Permanent settlement –1990s: Transnational space
Interpretive Engagement Institutions for business development in transnational labor markets: Institutions for business development in transnational labor markets: Financial services Financial services Infrastructure Innovative techno-social models Infrastructure Innovative techno-social models Knowledge Knowledge Political stake/voice Political stake/voice
Transnational Institutions Institutions for business development in transnational labor markets: Institutions for business development in transnational labor markets: Financial services Financial services Infrastructure Infrastructure Knowledge New concepts Knowledge New concepts New organizational forms New organizational forms New approach to human capital development New approach to human capital development Political stake/voice Political stake/voice
Transnational Institutions Institutions for business development in transnational labor markets: Institutions for business development in transnational labor markets: Financial services Financial services Infrastructure Infrastructure Knowledge Knowledge Political stake/voice New channels for political voice and influence Political stake/voice New channels for political voice and influence
Transnational Labor Markets How do you promote business development and entrepreneurship in this context? Transnational institutions for sustained economic activity Knowledge generation in transnational spaces
Transnational Labor Markets How do you promote business development and entrepreneurship in this context? Response to institutional barriers that sever transnational fields and prevent knowledge generation