This document discusses remittances from Spain. It begins with a brief history of remittances and policies in Spain and other European countries from 1901 to 2004. It then discusses remittances from Spain currently, noting that 60% go to Latin America and 8% to Morocco. Price of transfer, gender, time, and work conditions are important factors. Many countries see remittances as something that can be taxed but they are also important for development. Remittances require institutions and policies that consider key variables like price, gender, and time. Migrants can invest but also need training support.
A critical review and considerations: Green economy, what is it?
Remittances from Spain
1. Remittances f
R itt from S i
Spain
Research findings and policy
implications
"Remittances, the unknown aid. An
international perspective“
Stockholm 20/01/2011
/ /
Iñigo Moré, Research Centre Remesas.org
www.remesas.org
admin@remesas.org
4. History counts
Spain created some of the first policies on
remittances, but for its own development…
1922-Co-development
1922 Co development
Royal Decree December 17th 1922
1931-Accounting
Included in the “Balances de pagos internacionales”,
Spain’s first balance of payments: remittances were
160 million/Pts gold= 16% of current account income
1960-International treaties
“Convenio de Migración entre España y la República
Convenio
Argentina“, first international treaty on remittances (3
arts on remittances)
5. History counts
Until 1920 Spain’s remittances were bills of
exchange or checks: average price 0,5%. Then
switched to financial intermediaries
6. History counts
…because Spain, as other EU countries
(Sweden?), financed its development with
remittances (until 2004)
Remesas de los trabajadores desde y hacia España
(%/PIB)
6
5
4
3 Ingresos
2 Pagos
1
0
1970
1972
1974
1976
1978
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
Nota: Los datos anteriores a 1990 se han calculado utilizando tasas de variación anual de de conceptos
que no son totalmente homogéneos. Para los pagos no ha sido posible realizar dicho enlace para datos
anteriores a 1981, pero su importe para dichos años es prácticamente irrelevante.
7. History counts: S d
Hi t t Sweden
When Sweden was also a poor country…
In 1900 Sweden received remittances that were 1% of
the
th GDP
Lindhal, Erik; Einar Dahlgren, and Karin Kock. National
Income of Sweden, 1861‐1930. 2 vols. London: P.S.
King & Son, Ltd., 1937.
Real figures could be higher
The authors offer a net estimation. They multiply by
three the difference between the money orders sent by
immigrants in the United States and those leaving
8. History counts
Differences between 1900 and now
The actors
1900: women remitted money as members of their
families, now as individuals
The amounts
1900: remittances impact was local rather than global
The problems
1900: price was not a problem, now it is
The solutions
1900: receiving countries created policies on
remittances, now it is sending countries
9. Now: Remittances from Spain
60% of Spain’s remittances go to Latinamerica,
8% to Morocco
Spain's remittances impact 2007‐2008
p p
2007 2008
GDP in Remitt. %R/PIB GDP in Remitt. %R/PIB
US$ mill. US$ mill. US$ mill. US$ mill.
Bolivia 13.292 1.088 8,2% 17.413 1.061 6,1%
Ecuador 45.789 1.759 3,8% 52.572 1.545 2,9%
Paraguay 12.222
12 222 370 3,0% 16.006
16 006 450 2,8%
Senegal 11.300 243 2,2% 13.350 265 2,0%
R. Dominicana 40.988 474 1,2% 45.597 427 0,9%
Colombia 207.991 2.118 1,0% 240.654 2.076 0,9%
Marruecos 75.116 602 0,8% 86.394 565 0,7%
Rumanía 169.286 636 0,4% 199.673 588 0,3%
Perú 107.399
107 399 255 0,2%
0 2% 127.598
127 598 300 0,2%
0 2%
Pakistán 144.032 139 0,1% 167.640 196 0,1%
Filipinas 144.062 127 0,1% 168.580 138 0,1%
Brasil 1.333.502 555 0,0% 1.572.839 565 0,0%
Spain 1.439.983 8.444 0,59% 1.611.767 7.840 0,49%
fuente: PIB: World Economic Outlook Database, April 2009, Remesas: Banco de España
10. Now: Price is a problem
N Pi i bl
Remittances price average 6% while in the past
is was 0,5%
Spain-Morocco remittances
Price ranking in % of a 150€ remittance
11. Now: Working conditions count
N W ki g diti t
Remittances mean foreign workers, not just
foreigners
12. Now: Time counts
Remittances paradox: as time passes,
remittances increase at the aggregate level but
fade at the individual level
13. Now: Gender counts
Now women are the leading remittances
senders (from Spain)
Spain:
S i remittances b gender of th sender
itt by d f the d
Results of Remesas.org research for Instituto de la Mujer 2007
Gender W. Average Median Mode Number of Estandar Variance % of Total
remittance in € in Euros in Euros observations deviation Number
Men 350 € 200 €
100 € 21.388 448 200546,0 38,6%
Women 323 € 186 € 100 € 30.919 432 186492,7
, 61,4%
,
Spain: remittances as a % of salary
Results of Remesas.org research for Instituto de la Mujer 2007
Gender Anual averageMontly average Average Remittance %
salary salary Remittance of salary
Men 15.041 € 1.074 € 350 € 33%
Women 11.286 €
806 €
323 € 40%
14. Now: Policy counts
N P li t
Many countries believe in remittances, but for
the wrong reasons
They
Th can b t
be taxed
d
Colombia’s tax on remittances: 0,4%; Bolivia’s tax on
remittances: 1%; Brazil: 0,38%...
They are a tool for foreign policy
y g p y
USA limits its flow towards countries like Cuba; Russia
threatens to do the same with countries like Georgia
They are dangerous for security
AML/CT regulations worldwide
g l ti ld id
They are a good business for friends
Exclusivity agreements: Public Postal Operators, Cuba
15. Conclusions
An agenda for remittances
Remittances need institutions
It is impossible to manage efficiently 8% of the GDP
without institutions, laws, ministries, statistics…because
remittances are millions, but of persons
Price, gender and time are the main variables
Research feeds policy
Migrants can invest, but are not investors
They need technical training
16. Remittances from Spain
Research findings and policy
implications
“Nothing so denies a person liberty as the total
absence of money”
Iñigo Moré, Research Centre Remesas.org
www.remesas.org
www remesas org
admin@remesas.org