SERD Policy Talk (SPOT) Series: SPOT on the Prospects and Building Resilience of Remittances in Asia

In the 9th SPOT series, Aiko Kikkawa, Guntur Sugiyarto, and James Villafuerte from the ADB; and Jonathan Capal of Developing Markets Associates discussed the issues and prospects of labor mobility and remittances in Asia. The discussion noted the critical role of remittances as a lifeline for people in the region.

Pakistan’s Roshan Digital Account

Syed Ali-Mumtaz H. Shah gave an overview of the Roshan Digital Account in Pakistan.

In his presentation, he discussed how the digital account fully integrated Pakistan’s banking and payment system in a completely digital way and provided access in various lifestyle baking products.

In his presentation, he discussed how the digital account fully integrated Pakistan’s banking and payment system in a completely digital way and provided access in various lifestyle baking products.

Aiko Kikkawa

Aiko Kikkawa is Economist at ADB’s Economic Research and Cooperation Department. Her research portfolio covers international migration and remittances, aging and demographic change, and economic analyses of ADB projects. She was the lead author of the Asian Economic Integration Report 2019/2020 theme chapter titled “Demographic Change, Productivity and the Role of Technology”. She obtained her PhD in development economics from the National Graduate Institute of Policy Studies in Japan and a master’s degree in forced migration from the University of Oxford.

Engaging the Diaspora and Migrant Workers for Home Country Development: Diaspora Finance and Remittances

Various factors need to be seriously considered when desiging policies on migration and remittances. To ensure their effectiveness, governments must recognize the diversity of the diaspora and consider the situation of remitters and their rights and protection in both their origin and destination countries. They should also keep in mind that remittances are actually private funds and not a source of development finance.

Remittances: Experiences & Lessons from the AFI Network

Remittances have become an important souce of foreign funds for many countries. It has also helped reduce poverty and improve access to health and education. Globally, India is the largest remittance-receiving country, with an estimated $69 billion in 2015. It is followed by the People's Republic of China ($64 billion), and the Philippines ($28 billion). These countries, along with other remittance-receiving countries, face several obstacles. These include money transfer costs and weak or insufficeint e-payment infrastructure.

Remittances and Household Finances

Households use remittances in different ways. In Mexico, for example, households have higher budget shares for investments, while in the Philippines, they allot higher funds for food. In terms of saving and accessing financial products, many households that receive remittances still need to be more financially capable. They can be helped in this area through financial education interventions. Without these interventions, many households will continue to save money under mattresses and informal groups, never knowing that there are ways they can make their money grow.

Remittances and Financial Inclusion: A Policy and Regulatory Approach

The volume of remittance inflows in the Philippines continues to grow. In 2014, remittances channeled through the banking system reached US$24.3 billion, or 8.5% of the country's gross domestic product. The Bangko Sentral ng Pilipinas (BSP) sees this is an opportunity for inclusive growth. It has fostered financial inclusion through policy initiatives that enable more Filipinos to gain effective access to a wide range of financial services that could help them manage unforeseen financial shocks and increase their savings and investments.