2007年-ECB欧洲央行_Migrant_remittances_to_regions_neighbouring_the_EU_10页_377kb

Summary of Migrant Remittances to Regions Neighbouring the EU

Core Content

Migrant remittances to regions neighboring the EU have become a significant economic phenomenon, playing a crucial role in the development and stability of recipient economies. These flows are increasingly viewed not only as a personal financial activity but also as a development policy issue. While remittances can support consumption and investment, they also pose risks related to money laundering and terrorist financing, prompting international efforts to regulate and improve remittance transfer services.

Main Points

• Remittances as a Key Economic Factor: Remittances are a vital source of external funding for many developing countries, often surpassing government grants and foreign direct investment (FDI) in significance. They contribute to GDP, help finance external imbalances, and support capital formation.

• Migrant Groups and Their Contributions: Migrants from EU neighboring regions, particularly those with the prospect of EU membership, have been a major source of remittances. These include:

  • Candidate and Potential Candidate Countries: Account for 19% of the EU's non-national population, with notable contributions from Albania, Bosnia-Herzegovina, Croatia, the Former Yugoslav Republic of Macedonia, Serbia, Montenegro, and Turkey.
  • Mediterranean Countries: Represent the second-largest group, contributing 8% of the EU's non-national population.
  • Sub-Saharan African Countries: Account for 5%, while the European CIS countries represent 2%.

• Economic Impact of Remittances:

  • The ratio of net remittances to GDP in several countries ranges from 5% to over 23%, highlighting their importance as a source of income.
  • Gross remittances to imports exceed 20% in 11 of the 27 countries included in the analysis, indicating their role in financing trade deficits.
  • In some cases, remittances are multiple times higher than FDI, suggesting their greater impact on economic development.

• Remittance Flow Trends:

  • Gross remittances to the EU neighboring regions increased from USD 17 billion in 1990 to USD 49 billion in 2004.
  • Net remittances in 2004 were USD 14 billion for the Mediterranean countries, USD 6.6 billion for candidate countries, and USD 5.6 billion for Sub-Saharan African countries.

Key Definitions

• Workers' Remittances (WRs): Transfers by migrants employed in other countries, recorded in the current account.
• Compensation of Employees (CoEs): Wages and salaries paid to individuals working abroad, also recorded in the current account.
• Migrants' Transfers (MTs): Capital transfers due to migration, recorded in the capital account.
• Personal Transfers (PTs): A broader definition that includes all current transfers between households, regardless of the source or purpose.
• Personal Remittances (PRs): The sum of PTs and net CoEs, representing all household-to-household transfers.
• Total Remittances (TRs): The sum of PRs and social benefits, encompassing all transfers directly to households from other institutional sectors.

International Efforts

• Data Improvement: The G8 has supported efforts to improve remittance data collection, leading to the development of new definitions in the IMF Balance of Payments Manual. These definitions aim to enhance the accuracy and comparability of remittance statistics.
• Payment Systems Standards: The CPSS and World Bank have introduced five general principles to improve the safety, efficiency, and transparency of remittance transfer services. These include appropriate governance, risk management, and consumer protection.
• Policy Implications: There is a growing recognition of the need to improve the absorption of remittances into recipient economies to ensure they contribute to growth and development. This requires better banking infrastructure, access to financial services, and a supportive legal and regulatory environment.

Challenges

• Banking Sector Capacity: The ability of local banking markets to absorb remittances is limited in many countries, with issues related to branch and ATM coverage, access to credit, and financial inclusion.
• Informal Economy Risks: In the absence of formal financial services, remittances are often consumed or stored in cash, which reduces their effectiveness and increases the risk of financial leakage into the informal economy.
• Policy and Regulation: Countries must balance the need for transparency and consumer protection with the efficiency of remittance services, and must develop a non-discriminatory and proportionate regulatory framework.

Conclusion

Migrant remittances to the EU's neighboring regions are a significant and growing source of external funding, with substantial implications for economic development and stability. While they offer opportunities for growth and capital formation, challenges remain in terms of data accuracy, financial inclusion, and policy implementation. International cooperation and local institutional development are essential to maximizing the benefits of remittances while mitigating associated risks.