{{Remittance Data Collection}} The IMRO proposes to undertake, in partnership with local research institutions and experts, national and household level data collection initiatives on remittance flows in important and under-documented corridors linked to LDC countries. Data collection initiatives could include: - Mapping of formal flows to LDCs in key migration corridors; - Documentation and quantification of informal flows in key channels, and development of methodology and sustainable mechanism for future data collection in these channels. Remittance data collected could specifically include: include: (a) estimated total volume/flows at the national level, (b) transfer mechanisms and service providers used, (c) average transfer size, and (d) Cost and speed comparisons, (f) use of remittances by recipients, and (g) impacts of remittance flows on key indicators such as poverty, housing, health, education, economic development, the environment, etc. at the national, regional and local level. More expanded research efforts could also encompass analysis of how policy and regulatory frameworks in remittance sending and receiving countries enhance or inhibit remittance flows and their impact on development.

1. Provide information to migrants in home and host countries on remittance transfer, savings and investment options

Migrants often have limited awareness regarding the full range of (formal) remittance transfer options available to them, and/or savings, credit and/or investment opportunities via banks, MFIs or other financial institutions linked to their remittance flows. Limited information about available formal transfer services contribute to the wider use of informal transfer methods, which while they may be cost effective and simple, do not lead to enhanced development impacts. Furthermore, lack of knowledge about savings, credit and investment opportunities linked to remittance flows means that many migrants miss opportunities to leverage their financial resources for enhanced wealth and asset creation for themselves and their families. Savings and investments can also create positive, secondary development effects, such as local employment creation, new business development, improvements in housing stock, etc.

2. Increase awareness among migrants, both in their countries of origin and destination, of these opportunities, IOM proposes the design and implementation of a multifaceted information campaign that includes the following components : 

Outreach Method	Details
Written Materials	Produce and disseminate written materials, most likely in the form of a basic brochure or leaflet. Distribution of materials via diaspora/migrant organizations, pre-departure orientations with IOM and/or employment agencies, consulates, migrant resource centers, and/or NGOs working with migrants in origin and host countries.
Television and Radio	Produce and run TV and/or radio public service announcements or commercials on local stations in home and host countries promoting transfer and financial service providers and products.
Video	Produce video clips or programs which can be shown at pre-departure orientation sessions, at consulates/embassies in host countries, at migrant events, etc. featuring stories and interviews of migrants who use formal transfer channels and who have saved and invested earnings in banks and other formal financial institutions.
Internet	See DFID website www.sendmoneyhome.org for an example of a web-based information tool which could be replicated for specific migration and remittances corridors, and which could include information about comparative costs and benefits for transfers and investment products.
Outdoor Media:	Raise awareness of transfer, savings and investment opportunities via bus poster campaigns and outdoor billboards placed in strategic locations such as bus terminals, ferry crossings, train stations, airports, etc.
In-person information sessions hosted by consulates/embassies	Consulates/embassies in host countries to organize and host live information sessions for migrants resident abroad where representatives of banks; MTOs, MFIs, etc. can discuss their services, migrants can ask questions and receiving personal advising. Special technical assistance sessions for migrants interested in more specific or sophisticated investment (including business start up) activities could also be arranged.

3. Facilitate new partnership between remittance transfer service providers in host countries (Postal Services, Banks, etc.) and service providers in origin countries (banks, MFIs, postal services, NGOs) to enhance financial services to migrants and their relatives, promote savings and investment, and encourage use of formal channels.
4. Expand use of new technologies to lower cost and improve access and encourage use of formal channels.

1. Increase capacity of diaspora/migrant associations abroad to contribute to home country development via economic, social and/or environmental philanthropic investments supported by collective donations and possibly, matching funds

Based on recent experience working with diaspora groups from El Salvador living in the US, and drawing from successful experience in Mexico, the IMRO proposes a capacity building initiative to improve the ability of LDC diaspora/migrant associations abroad to contribute to home country development via economic, social and/or environmental philanthropic investments supported by collective donations and possibly, matching funds and also, to build mechanisms to strengthen communication between these diaspora organizations and their origin governments.

Capacity building training provided to diaspora groups will focus on core components of project selection and design, budgeting and financial management, monitoring and evaluation, etc.  Participant groups will also learn how to build strategic partnerships with relevant government agencies, NGOs, etc. to support project implementation, and how to align their activities with national development priorities for greater impact and synergies.

2. Promote the integration of LDC migrants and their remittance recipients into the formal financial system and improve their access/give them access to financial services for savings and investment in housing and/or small/medium business enterprises:

Based on successful microfinance models and IOM’s own successful microlending program in Central Asia (Tajikistan), the IMRO proposes an initiative to promote the integration of LDC migrants and their remittance recipients into the formal economic system and improve their access to financial services for savings and investment in housing, higher education, and/or small/medium business enterprises in LDC countries of origin. This work will be implemented via partnerships with an established microfinance institution (MFI), development bank or international development organization with experience in microlending services in the LDC concerned, such as in the case of IMRO’s program in Tajikistan where services are provided via a partnership with UNDP.

In this model, LDC migrants living abroad, will have the opportunity to send money home via one or more formal transfer institutions, a bank or money transfer company, who has a formal partnership with the selected microfinance institution, development bank or development agency in the LDC country of origin, enjoying favourable transfer costs and conditions.  Remittance money will be received into an account with the MFI/bank/development partner in the country of origin, under the name of the remitting migrant and/or the remittance recipient. Once money is placed on this account, the migrant and/or the remittance recipient will have the opportunity to access a variety of financial services, including:

• Micro-enterprise loans – small individual loans for moderately experienced entrepreneurs for business activities in the LDC country of origin;
• Small business loans – slightly larger individual loans for experienced entrepreneurs for business activities in the LDC country of origin;
• Home loans to individuals to finance acquisition, repair, expansion or construction of a home in the LDC country of origin;
• Education loans to pay for higher education (university) or continuing education courses to improve the employment prospects of the beneficiary;
• Interest-earning savings account, earning a fixed interest rate for a given period of time. Beyond a guaranteed interest rate, other incentives programs could be used to encourage regular savings deposits, such as more favorable lending rates/terms for education, housing and/or business/enterprise loans.

Lending terms (time and rates) will vary, and will depend partly on the size, regularity and longevity of the individual’s remittance flow.  Remittance senders/receivers who participate in the enterprise/business loan programs will be offered supporting business development services including assistance with business plan development, market analysis, budgeting/financial management training, etc.