Building Capacity of Migrant Workers and Governments in the Pacific Region to Harness the Remittance Potential of Labour Migration

Building Capacity of Migrant Workers and Governments in the Pacific Region to Harness the Remittance Potential of Labour Migration

Asia
TK.0007
TO10P0501
300,000
Tonga
Tuvalu
Vanuatu
Transfer of migrant knowledge and resources
Regional
Active

IOM understands remittances as multidirectional, voluntary, and private international monetary transfers that migrants make, individually or collectively, to people with whom they maintain close links. The way they are used is under the full discretion of the sender and the recipient. Remittances are a major source of income for many families and for many Pacific Island states to bolster national GDPs. However, significant portions of remittances are lost from the hands of the very labour migrants remitting due to transfer costs. The remoteness of the islands, lack of physical and telecommunications infrastructure, and lack of competition have also resulted in limited formal financial services.   In response to requests by the Governments of Tonga, Tuvalu, and Vanuatu, this project aims to achieve that the target government’s enhanced capacity enables a conducive environment for migrants to plan for and utilize remittances. This will be enabled by increasing government officials’ understanding of remittance flows and practices, through the development of a remittance research report (Output 1.1). The report will be based on a revision of government policies and practices, mapping of money transfer operators (MTOs) and banks, and interviews with stakeholders, which will then be workshopped to receive government validation. A second outcome aims for: Migrants and their communities to make informed decisions on saving, spending, and investing remittances. The project will equip government officials to cascade training on financial literacy (Output 2.1). This will be made possible through the development of general as well as target country specific training of trainers (ToT) manuals based on findings and recommendations from the remittance research report. With the manuals, the sub-national government, community, and migrants will be able to increase their awareness on remittances and financial literacy (Output 2.2). Through the identification of two government focal points, IOM will co-facilitate training at the national as well as sub-national level.