1. Migration, Remittances and Development
Una Osili Ph.D.
Associate Professor of Economics
Director of Research
The Center on Philanthropy at Indiana University

2. Outline
Background
Lessons from the New Immigrant Survey, African Diaspora Project
U.S. - Nigeria Migration Survey
Challenges and Opportunities
Policy Issues

3. Motivation
Remittances have outpaced official development assistance, and exceed foreign direct investment (FDI) in many developing countries (World Bank, 2009)
Women account for about half of an estimated 215 million international migrants (United Nations, 2010).
Gender remains an understudied aspect of international remittance flows and philanthropy.
The subject has recently gained the attention of no less than the World Bank, which now puts the remittance and philanthropic transfers total globally at $350 billion, nearly twice the total flow of Official Development Assistance from developed nations to developing nations. Remittance flows themselves have increased by 25% in the last four years, and trebled since The U.S. is the single largest point of origin of transnational philanthropy.---particularly investments in physical and human capital in the country of origin environment

4. International remittances are transfers of funds by foreign workers—"remitters"—who are living and working in developed countries typically to their families who are still living in their home countries.

5. New Immigrant Survey 2003: Fraction of sample sending remittances

6. Key Findings from New Immigrant Survey
Female headed are more likely to send remittances, holding other variables constant
Migrants also maintain broad economic and social ties with origin families and communities
Beyond remittances, U.S. immigrants have significant human capital, skills and experiences in the origin country

7. The Case of Nigeria
Nigeria is the only country in sub-Saharan Africa to rank among the top 25 remittance-receiving countries globally
Nigeria accounts for 60 per cent of all the remittance flows to sub Saharan Africa. 
Remittances are now the second largest source of foreign exchange earnings in Nigeria, after oil exports.
A large share of remittances (>50 percent) take place through informal channels

8. Unpacking remittances: Lessons from the U.S. Nigeria-Migration Survey
3 types of remittances:
Transfers to the Origin Household
support living and educational expenses of home families, finance expenses associated with income shocks (illness, job loss, crop failure)
Migrants’ Savings in the Home Country
finance migrants’ investments in the home country (include financial assets, housing, land, small businesses)
Nearly half of the U.S. migrant sample has initiated housing investments in the community of origin!
Community-based transfers
Sent to finance development projects in the community of origin or community needs (schools, health supplies, libraries, hospitals, erosion control, water supply, computer equipment, church buildings)

10. Insights from US-Nigeria Migration Survey
The 1997 US-Nigeria Migration Survey found that over 90 percent of Nigerian migrants living in the U.S. send remittances to family members regularly and about another 40% send investment-related transfers.
Gender influences the incidence, levels and types of remittances sent.

11. Additional Findings Women are more likely to be remitters
Female-headed households in the country of origin are more likely to be recipients of remittances and receive larger amounts.
Female migrants tend to target their remittances toward education, health, youth projects

12. Key Findings: Housing Investments
Migrants’ income and origin household assets are positively associated with housing investments.
Less-developed villages are less likely to receive housing investments
The policy context matters

13. Community Transfers
Descriptive evidence that migrants maintain direct economic ties with their communities of origin.
Hometown associations mobilize migrants’ contributions towards the construction of schools, hospitals and roads, and the provision of other amenities (Attah-Poku, 1996; Egboh, 1987; Smock, 1971).

14. Community Transfers
Hometowns with larger populations are positively associated with both the incidence and the magnitude of community transfers.
Hometowns located in more remote locations are less likely to receive community transfers and receive lower levels of community transfers.

15. Gender, Remittances and Philanthropy: Challenges and Opportunities
Migration, Brain Gain and Philanthropy
Beyond Remittances: Diaspora Engagement
Key concerns
Scale
Leverage
Collaboration
Sustainability

16. Regulatory and Policy Issues
Creating an enabling environment
Remittance Barriers: -- cost, convenience, competition, confidence and trust
Role of technology
-----family transfers
---investment transfers
---community transfers ---

20. Conclusions Women account for a growing share of the world’s migrants
Gender affects the incidence, amount and types of remittances –and the impact on the origin household
Female migrants can have a significant impact on their communities of origin through their remittance flows.