basug-inafi bangladesh remittances project · pdf fileundertaken a project titled basug-inafi...

BASUG-INAFI Bangladesh Remittances Project 2009

Rashed Al Hasan Project Manager (Remittances)

INAFI Bangladesh

BRAC Centre Inn Dhaka, Bangladesh

29 July, 2009

IntroductionIntroductionBangladesh is a labor surplus country. Bangladsh has been considBangladesh is a labor surplus country. Bangladsh has been considered ered as one of the labor supplying country in the international laboras one of the labor supplying country in the international labor market. market. Every year a large number of professionals, skilled, semiEvery year a large number of professionals, skilled, semi--skilled and skilled and unskilled labor go abroad for shortunskilled labor go abroad for short--term employment. term employment. Most of these temporary migrants go to Middle East, Malaysia, anMost of these temporary migrants go to Middle East, Malaysia, and d Singapore for shortSingapore for short--term employment. term employment. Besides, the cost of migration is less to migrate in these countBesides, the cost of migration is less to migrate in these countries. The ries. The socioeconomic condition of these temporary labor migrants are nosocioeconomic condition of these temporary labor migrants are not good t good and they come from middle class and lower class of the society. and they come from middle class and lower class of the society. Over the last one decade it is observed that every year a good nOver the last one decade it is observed that every year a good number of umber of proffessionals, skilled, semiproffessionals, skilled, semi--skilled and unskilled migrants go to Europe. skilled and unskilled migrants go to Europe. These migrants in Europe go to differnt European countires like These migrants in Europe go to differnt European countires like Italy, UK, Italy, UK, Greece, Spain, Germany, France, Belgium and Netherlands to stay Greece, Spain, Germany, France, Belgium and Netherlands to stay there there as permanent resident. as permanent resident. The migrants who go to Europe to stay permanently come from highThe migrants who go to Europe to stay permanently come from higher er class, higher middle class and middle class of the society; and class, higher middle class and middle class of the society; and their their socioeconomic condition is good. socioeconomic condition is good. It is assumed that the monthly average income of two members It is assumed that the monthly average income of two members Bangladeshi migrantsBangladeshi migrants’’ family in Europe is 2500 Euro. But the income of family in Europe is 2500 Euro. But the income of professionals, highly skilled migrants and businessmen are higheprofessionals, highly skilled migrants and businessmen are higher. r.

Introduction..contd..Introduction..contd..The Bangladeshi migrants who stay with their family ( 2 person fThe Bangladeshi migrants who stay with their family ( 2 person familyamily--husband and wife) and who donhusband and wife) and who don’’t work in different high position and lead t work in different high position and lead very simple life, their monthly household expenditure is 1200 Euvery simple life, their monthly household expenditure is 1200 Euro. But who ro. But who stay without family, their monthly family expenditure is 500 Eurstay without family, their monthly family expenditure is 500 Euro. o. It is assumed that the average monthly surplus of a family is 13It is assumed that the average monthly surplus of a family is 1300 Euro. 00 Euro. It is estimated that It is estimated that thethe Bangladeshi migrants in Europe transfer an average Bangladeshi migrants in Europe transfer an average about 400 per month to their family members staying in Bangladesabout 400 per month to their family members staying in Bangladesh. But the h. But the migrants, who stay alone without family, send more remittances. migrants, who stay alone without family, send more remittances. Besides, during various family and social occasions, the migrantBesides, during various family and social occasions, the migrants send more s send more remittances to their family members in Bangladesh. It is assumedremittances to their family members in Bangladesh. It is assumed that that average 1200 Euro is transferred annually for special occasion. average 1200 Euro is transferred annually for special occasion. So it is assumed that a Bangladeshi migrant family in Europe senSo it is assumed that a Bangladeshi migrant family in Europe sends average ds average 6000 Euro annually to their family members staying in Bangladesh6000 Euro annually to their family members staying in Bangladesh. . But it is observed that due to lack of financial literacy the faBut it is observed that due to lack of financial literacy the family members mily members staying in Bangladesh spend large portion of remittances for houstaying in Bangladesh spend large portion of remittances for household sehold consumption and other nonconsumption and other non--productive purposes, and a very small amount productive purposes, and a very small amount invest in different financial instruments and business enterprisinvest in different financial instruments and business enterprises. es. From this perspective, BASUG jointly with INAFI Bangladesh has From this perspective, BASUG jointly with INAFI Bangladesh has undertaken a project titled undertaken a project titled BASUGBASUG--INAFI Bangladesh Remittances INAFI Bangladesh Remittances Project 2009Project 2009 supported by supported by OxfamNovibOxfamNovib, Netherlands. , Netherlands.

Objectives of the ProjectObjectives of the ProjectThe main objective of this project is to enhance formal channel The main objective of this project is to enhance formal channel of of remittances and conduct financial literacy training to increase remittances and conduct financial literacy training to increase investment investment of remittances in various financial instruments i.e. bonds, Certof remittances in various financial instruments i.e. bonds, Certificate ificate deposits, capital market etc; and business enterprise developmendeposits, capital market etc; and business enterprise development. t.

Through this project the participants will: Through this project the participants will:

acquaint with family incomeacquaint with family income--expenditures and become more conscious expenditures and become more conscious about incomeabout income--expenditures expenditures aware about different cost items of family expenditures and try aware about different cost items of family expenditures and try to reduce to reduce unnecessary expenditures unnecessary expenditures understand importance of savings and try to enhance family savinunderstand importance of savings and try to enhance family savingsgsknow about overall profit from different financial instruments aknow about overall profit from different financial instruments and invest nd invest savings in these instruments savings in these instruments encourage and invest additional savings in different financial iencourage and invest additional savings in different financial instrumentsnstrumentsinform about different initiatives undertaken by Bangladesh Goveinform about different initiatives undertaken by Bangladesh Government rnment for expatriate Bangladeshis for expatriate Bangladeshis

Target ClientsTarget ClientsThe target clients of this project are Bangladeshi migrants stayThe target clients of this project are Bangladeshi migrants staying in ing in Europe especially to the Netherlands, Italy, Germany, Spain, Europe especially to the Netherlands, Italy, Germany, Spain, France, and UK and their family members staying in Bangladesh.France, and UK and their family members staying in Bangladesh.

Project Operational AreasProject Operational Areas

BASUG will implement the project in Europe ( UK and the BASUG will implement the project in Europe ( UK and the Netherlands) Netherlands) INAFI Bangladesh will implement the project in 10 Districts (DhaINAFI Bangladesh will implement the project in 10 Districts (Dhaka, ka, NarayanganjNarayanganj, , MunshiganjMunshiganj, , ComillaComilla, , ChittagongChittagong, , FeniFeni,, SariatpurSariatpur, , BarisalBarisal, B. , B. BariaBaria, and , and TangailTangail through 3 partner organization i.e. through 3 partner organization i.e. ShaktiShakti Foundation, UDDIPAN, and WARBE. Foundation, UDDIPAN, and WARBE.

ShaktiShakti Foundation:Foundation: Dhaka, Dhaka, NarayanganjNarayanganj, , MunshiganjMunshiganj; ; UddipanUddipan:: ComillaComilla, , ChittagongChittagong, , FeniFeni;;

WARBE: WARBE: SariatpurSariatpur, , BarisalBarisal, B. , B. BariaBaria, , TangailTangail ((MirzapurMirzapur))

ActivitiesActivitiesIdentification of target clients from project operational areas Identification of target clients from project operational areas Select the target clients by using preliminary client Select the target clients by using preliminary client assessment form assessment form Orient the selected clientsOrient the selected clients’’ details about the project, its details about the project, its objectives and training. objectives and training. Prepare a list of 50Prepare a list of 50--60 selected clients who are interested 60 selected clients who are interested to participate in the training. It may be mentioned here that to participate in the training. It may be mentioned here that maximum 2 persons ( 1 male and 1 female) from each maximum 2 persons ( 1 male and 1 female) from each family can participate in the training. family can participate in the training. Fix the training date Fix the training date Develop documentary film Develop documentary film Develop financial literacy training materials Develop financial literacy training materials Conduct trainingConduct training

Financial Literacy Training MaterialsFinancial Literacy Training MaterialsSessionSession--1 1

Session Title:Session Title: Registration, introduce with each other, briefing about course Registration, introduce with each other, briefing about course framework and assess expectations from the participants. framework and assess expectations from the participants.

Session Objectives:Session Objectives: At the end of this session the participants willAt the end of this session the participants will--know training course objectives know training course objectives their expectations from training their expectations from training system of training system of training

SessionSession--22

Session Title:Session Title: Financial Knowledge and ManagementFinancial Knowledge and Management

Session Objectives:Session Objectives: At the end of this session the participants willAt the end of this session the participants will--understand the importance of financial knowledge and management understand the importance of financial knowledge and management know how financial knowledge can play role in personal and familknow how financial knowledge can play role in personal and family life y life manage financial matters in personal and family life manage financial matters in personal and family life

Financial Literacy Training Materials.. contd..Financial Literacy Training Materials.. contd..SessionSession--33

Session Title:Session Title: Socioeconomic Condition of Europe going Bangladeshi MigrantsSocioeconomic Condition of Europe going Bangladeshi MigrantsSession Objectives:Session Objectives: At the end of this session the participants will know and At the end of this session the participants will know and

understandunderstand--characteristics of Europe going migrants characteristics of Europe going migrants their educational qualifications their educational qualifications financial condition of their family financial condition of their family total expenditures for migration in Europe total expenditures for migration in Europe sources of funds for migration etc sources of funds for migration etc

SessionSession--44

Session Title:Session Title: Life style of Bangladeshi Migrants living in Europe Life style of Bangladeshi Migrants living in Europe Session Objectives:Session Objectives: At the end of this session the participants will know and At the end of this session the participants will know and

understandunderstand--Life style of Bangladeshi Migrants living in EuropeLife style of Bangladeshi Migrants living in EuropeTheir monthly and annual incomeTheir monthly and annual income--expenditures expenditures Various cost items Various cost items Monthly and annual surplus money Monthly and annual surplus money Amount of remittances transferred to home Amount of remittances transferred to home Amount of savings etc Amount of savings etc


Session Title:Session Title: Life Style of Family Members of Bangladeshi Migrants staying in Life Style of Family Members of Bangladeshi Migrants staying in BangladeshBangladeshSession Objectives:Session Objectives: At the end of this session the participants will know and At the end of this session the participants will know and understand aboutunderstand about--

Life Style of Family Members of Bangladeshi Migrants staying inLife Style of Family Members of Bangladeshi Migrants staying in BangladeshBangladeshMonthly income and sources of incomeMonthly income and sources of incomeMonthly expenditures and various expenditure itemsMonthly expenditures and various expenditure itemsAmount of annual surplus moneyAmount of annual surplus moneyAmount of savings etcAmount of savings etc

SessionSession--66

Session Title:Session Title: Transfer Remittances through Formal ChannelTransfer Remittances through Formal ChannelSession Objectives:Session Objectives: At the end of this session the participants will know and At the end of this session the participants will know and understand aboutunderstand about--

how to transfer remittances through formal channel how to transfer remittances through formal channel documents required to transfer remittances documents required to transfer remittances how to complete documents how to complete documents cost and time of transfercost and time of transfer


Session Title:Session Title: Government initiatives and facilities to invest formal channel Government initiatives and facilities to invest formal channel transferred remittances in different financial instrumentstransferred remittances in different financial instrumentsSession Objectives:Session Objectives: At the end of this session the participants will know and At the end of this session the participants will know and understand aboutunderstand about--

Government initiatives and facilities to invest formal channel Government initiatives and facilities to invest formal channel transferred transferred remittances in different financial instruments remittances in different financial instruments

wage earners development bond wage earners development bond US Dollar premium bond US Dollar premium bond US Dollar Investment bond etc US Dollar Investment bond etc

SessionSession--88Session Title:Session Title: Different Savings Schemes Initiatives and Facilities by the Different Savings Schemes Initiatives and Facilities by the Government Government Session Objectives:Session Objectives: At the end of this session the participants will know and At the end of this session the participants will know and understand aboutunderstand about--

Different Savings Schemes Initiatives and Facilities by the GovDifferent Savings Schemes Initiatives and Facilities by the Government ernment 5 Years Bangladesh Savings Scheme 5 Years Bangladesh Savings Scheme 3 Months Profit Savings Scheme 3 Months Profit Savings Scheme Pensioner Savings SchemePensioner Savings Scheme3 Years National Investment Bond Scheme3 Years National Investment Bond SchemeBangladesh Prize bondBangladesh Prize bondPost office savings schemePost office savings schemePost office Life insurance etc.Post office Life insurance etc.


Session Title:Session Title: Savings and Investment Schemes of Government and Private Savings and Investment Schemes of Government and Private Commercial Banks Commercial Banks Session Objectives:Session Objectives: At the end of this session the participants will know and At the end of this session the participants will know and understand aboutunderstand about--

Different Savings Schemes Initiatives and Facilities by the GovDifferent Savings Schemes Initiatives and Facilities by the Government and ernment and Private Commercial BanksPrivate Commercial Banks

Terms and condition of each savings product Terms and condition of each savings product Interest rate of different savings products ( note: interest raInterest rate of different savings products ( note: interest rate of different te of different

savings products might vary according to Central Bank Bangladeshsavings products might vary according to Central Bank Bangladesh Bank policy) Bank policy)

SessionSession--1010

Session Title:Session Title: Savings and Investment Schemes of Different Financial InstitutioSavings and Investment Schemes of Different Financial Institutions: ns: NonNon--Bank Financial Institutions (Bank Financial Institutions (NBFIsNBFIs) and Microfinance Institutions () and Microfinance Institutions (MFIsMFIs) ) Session Objectives:Session Objectives: At the end of this session the participants will know and At the end of this session the participants will know and understand aboutunderstand about--

Different savings schemes of Different savings schemes of NBFIsNBFIs and and MFIsMFIsTerms and condition of each savings product Terms and condition of each savings product Interest rate of different savings products ( note: interest raInterest rate of different savings products ( note: interest rate of different te of different

savings products might vary)savings products might vary)


Session Title:Session Title: Investment Facilities for NonInvestment Facilities for Non--Resident Bangladeshis in the Capital Resident Bangladeshis in the Capital market market Session Objectives:Session Objectives: At the end of this session the participants will know and At the end of this session the participants will know and understand aboutunderstand about--

Investment facilities for Investment facilities for NRBsNRBs in the capital market in the capital market How to open Foreign Currency (FC) account How to open Foreign Currency (FC) account How to open Beneficiary Owners (BO) Account How to open Beneficiary Owners (BO) Account How apply for IPO of shares How apply for IPO of shares

SessionSession--1212

Session Title:Session Title: Investment Facilities of NonInvestment Facilities of Non--Resident BangladeshisResident BangladeshisSession Objectives:Session Objectives: At the end of this session the participants will know and At the end of this session the participants will know and understand aboutunderstand about--

Investment Facilities of Investment Facilities of NRBsNRBs in capital and financial marketin capital and financial marketInvestment Facilities of Investment Facilities of NRBsNRBs in industrial investment and investment in Export in industrial investment and investment in Export

Processing ZoneProcessing ZoneTax holiday facilities Tax holiday facilities Investment facilities in Land and ApartmentInvestment facilities in Land and Apartment

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basug-inafi bangladesh remittances project · pdf fileundertaken a project titled basug-inafi...

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