Successful Innovations

Leveraging Migrants’ Remittances for Development: Practices, Lessons Learned and Trends
24-25 October, 2008
Asian Institute of Management
Makati City, Philippines

With the Philippines’ hosting of the forthcoming Global Forum on Migration and Development (GFMD), the International Network of Alternative Financial Institutions in the Philippines – (INAFI-Philippines) will sponsor in cooperation with the Philippine Consortium on Migration and Development (PHILCOMDEV) and the Asian Institute of Management Policy Center (AIM Policy Center) through the support of Oxfam NOVIB, an International Forum on Microfinance, Remittances and Social Impact of Migration with the theme of “Leveraging Migrants’ Remittances for Development: Practices, Lessons Learned and Trends”.

The forum will be held on 24-25 October 2008 at the Asian Institute of Management in Makati City, Philippines and will be attended by around 80 participants representing different stakeholders in migration and development from different countries in Asia, Africa, Latin America, Europe, and North America.

The forum aims to highlight the contribution of migrants to development and the recognition of partnership building as an empowering process for them and their families and communities. It is also expected to serve as a platform in helping awaken the migrants’ consciousness on their potentials, and in further increasing their involvement as key participants in the national development process. This forum is part of the PHILCOMDEV parallel activities on the GFMD entitled “Closer to Home: Galing ng Pinoy, Galing sa Pinoy”.

BACKGROUND: INAFI’S INITIATIVES ON MIGRATION AND DEVELOPMENT IN PARTNERSHIP WITH OTHER STAKEHOLDERS

INAFI is a network of organizations committed to fighting poverty by capacitating its members to pursue non-traditional affordable financial services that will enable the poor in meeting their financing needs and lessen their vulnerabilities. With the emerging phenomenon and opportunities on migration and development, the INAFI network has been evolving a program to address the challenges of including migration in the development agenda of governments, and creating an enabling environment that will value-add remittances and transform this as a tool for sustainable development.

INAFI recognizes the direct link of remittances (i.e. as a transfer facility, Diaspora philanthropy, or investment) to alternative finance and the need to facilitate this financial flow. In engaging migrant remittances for development, INAFI through the support of Oxfam NOVIB and other stakeholders has conducted 3 major international conferences: the Zacatecas Conference in Mexico (Latin America) in 2005; the Tagaytay City Conference in the Philippines (Asia) in 2006, and the Cotonou Conference in Benin (Africa) in 2007. Two big events in preparation for the Benin Conference were also held in 2007 namely the Experts’ Roundtable Discussion held in Burkina Faso and the African Diaspora Conference in Benin.

INAFI employs partnership building as the main strategy of its engagement in migration and development. Its African network is active in inter-facing with the African Diaspora philanthropy for the establishment of an African Diaspora Fund for Development. In Asia, its Philippine network with its partners has spearheaded the formation of PHILCOMDEV. Other INAFI network members are also involved in facilitating remittances through partnership building like that of the Bangladesh Rural Advancement Committee (BRAC), New Rural Bank of San Leonardo (NRBSL) and Banco Lagawe in the Philippines, PAMECAS in Africa, and the Sistema Fedecredito and FOLADE in Latin America to name a few.

With these initiatives, INAFI has positioned itself in the forefront in addressing the challenges of migration and development, specifically harnessing the potentials of remittances for sustainable community development. As a microfinance network, INAFI has already created a niche in harnessing remittances for economic and social investments through the accessible and efficient remittance channels of its affiliate microfinance institutions (MFI). INAFI also assisted in linking Diaspora/migrant organizations to their home countries like that of the Kapatiran Philippines with the Economic Resource Center for Migrants Overseas (ERCMOVE). Other INAFI affiliates like the Social Enterprise Development Partnerships, Incorporated (SEDPI) and BALIKKABAYANI have launched migrant education campaigns focusing on the realities in the migrants’ respective origin countries, while several have facilitated the channeling of remittances/investments/donations into productive projects that benefit both migrant families (by weaning them away from the vicious cycle of indebtedness and dependency), and their immediate communities (by encouraging investments that will help build stronger local economies). The ATIKHA, Kooperatibang Likas ng Nueva Ecija (KOOL NE) and MILAMDEC experiences are examples of this.

THE INTERNATIONAL FORUM

Rationale

Over the years, migrant remittances have increased significantly leading experts to recognize it as the developing world’s most reliable and broad-based source of financing. Remittances have been second to or even surpassing official development assistance. The World Bank Remittances Trend estimates that recorded remittances to developing countries in 2007 has reached $240 billion and projected to increase to $318 billion with India, China, Mexico and Philippines as the top 4 recipient countries.

These remittances have a definite contribution to development and some of the recognized impacts are:

1. association with poverty reduction and increased household investments in education, entrepreneurship, and health (e.g. the Vellinippatti Migrants Association in Singapore helping in infrastructure development and social transformation in a community in India, the Seven Lakes International in the USA and Canada donating community social projects in a city in the Philippines);
2. contribution to the appreciation of the local currency that affected traditional exports (i.e. the Overseas Filipinos Worldwide Mutual Benefit Corporation (OFW-MBC) donation/investment in the Coco Natur project for coconut farmers, ERCMOVE’s time deposit/investment in the microfinance program for the enterprising poor of MILAMDEC, the Adopt a Client Investment Program (ACIP) of KOOL NE all in the Philippines);
3. the securitization of future remittances towards raising capital from international markets (e.g. easier access to remittances and value-adding as shown by BRAC in Bangladesh and Sistema Fedecredito in Latin America, savings in time and distance as shown by the Banco Lagawe in the Philippines).

And in recognition of these contributions, an agreement was forged during the November 2007 G8 meeting to promote better coherence and coordination of international organizations that are working to enhance remittance services and heighten the developmental impact of remittance receipts in developing countries.

But there is still much to be done. Economic depression remains evident in the migrants’ countries of origin especially the rural areas. Migrant families remain dependent on remittances mainly for expenditures on food, clothing, shelter, education, health, and loan payments although they would have saved money and invested if they could. This indicates the lack of support systems for reintegrating the migrants once they go back home.

The present situation denies development participation to the migrants which makes them uninformed, excluded and marginalized. PHILCOMDEV would like to reverse this trend. The welfare of the migrants should be recognized and protected, and migration should contribute to sustainable development. Towards this end, PHILCOMDEV has been conducting dialogues and inter-face to link the migrants with the development imperatives in the Philippines. This effort is well illustrated in its successful facilitation of partnerships between and among Home Town Associations (HTA), Local Government Units (LGU), and Non-government Organizations/ Private Institutions (NGO/PI).

Goals and Objectives

INAFI’s last Global Conference on Migration and Development in Benin was all about sharing and profiling the best practices of remittances, microfinance and Diaspora philanthropy for sustainable development. It was where INAFI’s policy and program on migration, remittances, microfinance and sustainable development was launched. Now, it is about time to look at the trends and lessons learned from the practice.

With the Philippines’ hosting of the forthcoming GFMD, INAFI-Philippines proposes to hold an aligned but parallel conference that seeks to acknowledge the contributions of migrants to development; and the recognition of partnership building as an empowering process for the migrants, their families, and their communities; and help arouse the national consciousness on the migrants’ potentials and therefore increase their involvement in the development process. The specific objectives are:

• launch with PHILCOMDEV partnership initiatives of migrants with LGUs and MFIs /NGOs through a Memorandum of Agreement;
• bring together migrants, their families, migration and development stakeholders, and microfinance practitioners to share their best practices on leveraging remittances for development;
• promote migration and development as a development agenda;
• introduce with PHILCOMDEV a process of migrant empowerment through consciousness raising and capacity building on financial literacy and entrepreneurship;
• showcase migrants’ initiatives and contributions to economic development and empowerment.

Theme

The proposed forum will be part of the PHILCOMDEV parallel GFMD program and will have the theme of Leveraging Migrants’ Remittances for Development: Practices, Lessons Learned and Trends.

Expected Output

Through the forum, the following outputs are expected to be achieved: (1) HTA-LGU-NGO partnerships, (2) crafting of a common advocacy agenda, (3) compilation of training modules financial literacy and social entrepreneurship, (4) conducted financial literacy and social entrepreneurship capacitation for migrants and their families, (5) documented proceedings with a compendium of the showcased best practices, and (6) awarding of recognition to best practices.

Management and Administration

The forum will be held in Manila near where the GFMD will take place, and will be undertaken with the cooperation of PHILCOMDEV and in coordination with the GFMD, and through the support of Oxfam NOVIB. INAFI’s Philippine chapter with PHILCOMDEV representatives shall comprise the organizing committee and will be responsible for the preparation, mobilization, promotion and management of the forum and the other parallel events..

The forum promotion, mobilization of sponsors, coordination with relevant stakeholders and other preparatory activities shall take place from June to the second week of October 2008. A web link to the web sites of INAFI Asia (www.inafiasia.net) and INAFI International (inafiinternational.org, info@inafiinternational.org) will be established a month before the forum provide updates for the participants.

The design of the activities presented in this proposal will be open to adjustments and changes until a month before the proposed forum date. The forum will be part of the PHILCOMDEV parallel events — “Closer to Home: Galing ng Pinoy, Galing sa Pinoy” — which includes the following activities which will take place on 24-30 October 2008.

• Conduct of Philippine Dialogue on Migration and Health. Discussion of migration and health issues as well as solutions,
• Launching of the Closer to Home: Galing ng Pinoy, Galing sa Pinoy Search for Best Practices on Migration and Development.
• MOA Signing with 15 Provincial Governors and City Mayors Piloting Program on Leveraging Resources for Development. The MOA is intended migrants’ rights and welfare, reintegration preparedness, and harnessing the benefits of migration for local economy development.
• Four Day Exhibit of Best Practices on Migration and Development. The exhibit will showcase migration and development initiatives, NGO and government programs and services, and OFW-funded enterprises and other social enterprises.
• Alternative Development Tours. Trips to projects that somehow involved overseas Filipinos in Laguna, Batangas, Nueva Ecija, and Ifugao.

 Ambato, Ecuador - 24 y 25 de julio de 2009

Una de las áreas de mayor importancia en la administración financiera, es sin duda la gestión de tesorería, que tiene como misión fundamental, mantener niveles de liquidez adecuados, que le permita a la entidad atender en todo momento, los retiros de depósitos que realizan sus socios, pagos de obligaciones financieras, gastos operativos y concesión de nuevas operaciones de crédito.

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Durante 18 días, la Ruta de aprendizaje visitó nueve experiencias innovadoras sobre microfinanzas rurales en India y Bangladesh. Los 22 participantes de 14 países latinoamericanos, africanos y asiáticos vuelven hoy a sus países cargados de conocimiento.

1 de mayo de 2009. Nuria Felipe, desde Dhaka, Bangladesh. – Qué mejor manera de concluir esta Ruta de Aprendizaje que compartiendo impresiones con Mohammad Yunus, fundador del Banco Grameen, galardonado con el Premio Nobel de la Paz en 2006.

aprenden de las experiencias innovadoras en varios estados de la India. La ruta de aprendizaje continua mañana hacia Bangladesh

23 de mayo de 2009. Juan Moreno, desde Trichy, sur de India – Las altas temperaturas, más de 40 grados y las distancias continentales de la India no han sido un obstáculo para el éxito de la nueva ruta de aprendizaje de PROCASUR sobre innovaciones microfinancieras rurales que comenzó el pasado 13 de abril en Mumbay, India, y culminará el próximo día 30 en Dhaka, Bangladesh.

Participan en la ruta 22 representantes de 14 países latinoamericanos, africanos y asiáticos provenientes de instituciones relacionadas con el microcrédito. Durantes los diez días transcurridos en India han conocido, de la mano de sus protagonistas, más de 400 mujeres y hombres campesinos, pequeños ganaderos, artesanos y comerciantes, que en comunidades y aldeas rurales usan combinaciones de servicios y productos de ahorro y crédito, junto a servicios locales de asistencia técnica, para impulsar sus pequeños negocios e iniciativas microempresariales.

Dear all,

PROCASUR has two mobile phones in India where you or your family and collegues can reach us:

+91 09833871885 and +91 09833870969

We will wait for you at the airport.

Remember that the group will be staying at the:

Quality Inn Parle International

Agarwal Market, Vile Parle E , Mumbai, IN, 400 057 | Phone: (91) 22 2610-2122 Fax: (91) 22 2612-8215

http://www.hotelparleinternational.com/

Dear colleagues,

We need to inform you that we have changed the Hotel in Mumbai, from the Bandra Residency to the QUALITY INN PARLE INTERNATIONAL, since it´s nearer  to the Airport allows us to move faster and save time. Quality of the Hotel is still guarantied.

We want to make clear that we will be waiting for you at the airport, with a sign naming the hotel and the word RUTAS. We recommend to print this information for any unexpected situation.
Quality Inn Parle International

Agarwal Market, Vile Parle E , Mumbai, IN, 400 057

Phone: (91) 22 2610-2122     Fax: (91) 22 2612-8215

http://www.hotelparleinternational.com/

http://www.qualityinn.com/hotel-mumbai-india-II049

The 19 participants selected for the Path to Learning Successful Innovations in Rural Microfinance in Asia prepare for the upcoming opening of the Path in Mumbai, India. Between April 14 and 30, 2009 men and women from Africa and Latin America will travel to India and Bangladesh to meet and learn about new financial products and services for the rural poor.

Representing organizations in Malawi, Uganda, South Africa, Nigeria, Ecuador, Colombia, Mexico, Bolivia and Peru, the participants will visit ten outstanding public and private institutions and associations of beneficiaries who have led the advances in the area of rural microfinance in Asia. In India they will visit the National Bank for Agriculture and Rural Development (NABARD), Friends of Women’s World Banking (FWWB), Self Employed Women’s Association (SEWA) and BASIX and in Bangladesh Shepherd, BRAC, SAVESAFE and the internationally renowned Grameen Bank.

Participate in an innovative in-the-field training system

The Program “Paths to Learning: Successful Innovations in Rural Microfinance” aims to enhance the capabilities of those involved in the design and implementation of microfinance services and products for the benefit of poor rural families in Africa, Asia, and Latin America

Lease-to-buy schemes in Bolivia, money transfer services in Ecuador and Uganda, Postal Banks in Kenya, savings and life insurance in Peru, and the use of new technologies—banking by cell phone, biometrics for identification, and smart cards—in South Africa and Malawi, are among the many innovations that have helped expand financial services to poor rural populations.

In-depth studies of and visits to these experiences have highlighted the first two Paths to Learning carried out in the context of the Program “Paths to Learning: Successful Innovations in Rural Microfinance in Africa, Asia and Latin America.” The Path in Latin America was carried out between October 28 and November 14, 2007, and the Path to Learning in Africa between June 1 and 16, 2008. Thirty-five microfinance operators from more than 20 countries participated in this innovative initiative developed by PROCASUR Regional Corporation with support from the Ford Foundation.

“The program aims to identify, disseminate, and incentivate the application of those innovations which have enabled millions of rural customers to diversify their opportunities, improve their income, and increase their assets,” said Bernardita Budinich, the Program coordination assistant for PROCASUR. “Both Paths had excellent results and have been evaluated favourably by participants and the team. It has been hard work for everyone but we are very happy with the results,” she said.