Seminar of the Czech Republic Prague February 24

Seminar of the Czech Republic Prague – February 24, 2009 REMITTANCE FLOWS AND DEVELOPMENT IMPACT AFD APPROACH Guillaume CRUSE Executive Director’s Advisor on migrations

Introduction : • Supporting and channelling remittance, an important tool for development issues • But we have to be very cautious : - Remittance are private flows, mainly for consumption - flows which are very un-precise or badly known • All this matter as to be discussed : - with the migrants - with the competent public stakeholders - with the banking system

I – Which objectives to be planed by an organisation such as AFD? Contribute to regulation - introducing the real figures, - collaborate to promote the appropriate rules and public regulations - propose good and appropriate financial mechanisms In the field or remittance 1) having a better view and figures on the flows and on the real migrant’s practises - several pasted studies or others going on - knowing facts in transfers - knowing their utilization

Breakdown of Investment Projects in the countries of origin Ratios d’utilisation des fonds (nombre de familles concernées par poste)

Introduce transparency – role of the comparison websites - the first one : the British “sendmoneyhome project” (DFID) - our “envoidargent” in AFD

2) Reducing the cost of remitting - Encouraging competition - Improving a better banking coverage . create new channels. sustaining microfinance institutions in the countries of origin . sustaining mutualism credit system

- Improving security and speed of transfer . introducing new technologies. better conveyance of the cash. use the villages cash office for microfinance

- Sustaining or promoting investments . welcoming migrants in the banking system. encourage competition in saving accounts for driving investments . transfer credit from France to the countries of origin. encourage new system for insurances. promote credit for family or individual construction. in place, give credit and guaranties for productive projects. introduce a new meso-finance approach. sustaining the local development

II – developing partnership - with the appropriate public institutions and ministries - with European Commission - with bilateral donors - with multilateral donors - with private partners as banks, but maybe also firms

III – Which countries? - as seen in the studies: Morocco, Senegal, Mali, Comoros - when we have an official agreement between Governments : Tunisia, Benin, Mauritius, Burkina Faso - significant other countries : Vietnam, Haiti