Payments in the AmericasPayments in the Americas FEDERAL RESERVE BANK of ATLANTAFEDERAL RESERVE BANK of ATLANTA

October 7 – 8 Atlanta GAOctober 7 – 8 Atlanta GA

The Summit of the Americas The Summit of the Americas Process and RemittancesProcess and Remittances

Organization of American StatesOrganization of American States

BackgroundBackgroundFirst Summit (Miami, December 1994)

Summit on Sustainable Development(Santa Cruz de la Sierra, December 1996)

Second Summit (Santiago, April 1998)

Third Summit (Quebec City, April 2001)

Special Summit (Monterrey, January 12-13, 2004)

Monterrey, México2004

Third Summit of the Third Summit of the

AmericasAmericas –– April 20 – 22, April 20 – 22, 20012001• DemocracyDemocracy

• Human RightsHuman Rights

• JusticeJustice

• Hemispheric SecurityHemispheric Security

• Trade and FinanceTrade and Finance

• InfrastructureInfrastructure

• Disaster ManagementDisaster Management

• Sustainable DevelopmentSustainable Development

• AgricultureAgriculture

LaborLabor

Growth with EquityGrowth with Equity

EducationEducation

HealthHealth

• Gender EqualityGender Equality

• Indigenous PeoplesIndigenous Peoples

• Cultural DiversityCultural Diversity

• Children and YouthChildren and Youth

• Summit Follow UpSummit Follow Up

• ConnectivityConnectivity

Third SummitThird Summit – Quebec, – Quebec, 20012001

Migration - RemittancesMigration - Remittances ““Support initiatives designed to Support initiatives designed to strengthen linkages among migrant strengthen linkages among migrant communities abroad and their places of communities abroad and their places of origin and promote cooperative origin and promote cooperative mechanisms that simplify and speed up mechanisms that simplify and speed up the transfer of migrant remittances and the transfer of migrant remittances and substantially reduce the costs of substantially reduce the costs of sending them”.sending them”.

Why a Special Why a Special Summit?Summit?

• Argentina - Nestor Carlos Kirchner (2003)

• Bahamas - Perry Christie (2002)

• Bolivia – Carlos Mesa Gisbert (2002)

• Brazil - Luiz Inácio Lula da Silva (2003)• Canada – Paul Martin (2002)

• Colombia - Álvaro Uribe Vélez (2002)

• Costa Rica - Abel Pacheco de la Espriella (2002)

• Ecuador - Lucio Edwin Gutiérrez Borbua (2003)• Guatemala – Óscar Berger

• Honduras - Ricardo Maduro (2002)

• Jamaica - Percival James Patterson (1992/2002)

• Nicaragua – Enrique Bolaños (2002)

• Paraguay - Nicanor Duarte Frutos (2003)

• Trinidad and Tobago - Patrick Manning (PNM) 2003

14 new 14 new leadersleaders

Why a Special Why a Special Summit?Summit?HUMAN DEVELOPMENT REPORT 2004

RANKING AMONG 177 COUNTRIES

153121

118115

114104

103100

9998

9593

8987

8579

7372

7168

6761

5554

5351

4645

4339

3429

84

0 20 40 60 80 100 120 140 160

HaitiGuatemalaNicaraguaHonduras

BoliviaGuyana

El SalvadorEcuador

BelizeDominican Republic

DominicaGrenada

ParaguaySt.Vincent & the

PeruJamaica

ColombiaBrazil

Saint LuciaVenezuelaSuriname

PanamaAntigua and BarbudaTrinidad and Tobago

MexicoBahamas

UruguayCosta Rica

ChileSaint Kitts and Nevis

ArgentinaBarbados

United StatesCanada

Source: Human Development Report 2004, Cultural Diversity in today's diverse world. United Nations Development Programme

Why a Special Why a Special Summit?Summit?

Source: World Development Indicators 2003 Edition. The World Bank

PERCENT OF THE NATIONAL INCOME DISTRIBUTION - HIGHEST 10% OF THE POPULATION 2001

48.8

48

46.1

46

44.4

43.8

41.6

39.4

37.9

36.5

35.7

35.4

34.6

33.8

33.8

33.8

32

32.5

30.5

29.9

30.3

23.9

0 5 10 15 20 25 30 35 40 45 50

NicaraguaBrasil

ColombiaGuatemala

HondurasParaguay

MexicoEl Salvador

República DominicanaVenezuela

PanamáPerú

Costa RicaGuyanaUruguayEcuador

BoliviaSt. Lucia

United StatesTrinidad and Tobago

JamaicaCanada

Special Summit of the Special Summit of the Americas IssuesAmericas Issues

► Economic Economic Growth with Growth with Equity to Equity to Reduce Reduce PovertyPoverty

► Social Social DevelopmentDevelopment

► Democratic Democratic GovernanceGovernance

Social Social DevelopmentDevelopment► Empowerment of women► OAS Mechanisms to combat poverty► Strengthen the social security systems ► Cultural Diversity, Indigenous People► Strengthen the social security systems ► Full protection of human rights of all migrants ► Decent work, take measures to fight the worst forms

of child labor. ► Promote access to quality basic education for all► Fight against trafficking in persons ► Scientific and technological research and

development ► Combat the HIV/AIDS pandemic► Impact of natural Disasters and environmental health

Economic Growth with Economic Growth with Equity Equity

to Reduce Povertyto Reduce Poverty► Simplify the procedures and reduce the Simplify the procedures and reduce the

time and cost of establishing businesses time and cost of establishing businesses ► strengthen property rights strengthen property rights ► Develop micro, small and medium Develop micro, small and medium

enterprises - access to creditenterprises - access to credit► Resolution of financial crises; reform the Resolution of financial crises; reform the

international financial architecture; international financial architecture; reduce the burden of debt service, HIPCreduce the burden of debt service, HIPC

► FTAA CalendarFTAA Calendar► Remittances – reduce the average cost Remittances – reduce the average cost

by at least half (2008)by at least half (2008)► Monterrey consensusMonterrey consensus

Declaration of Nuevo Declaration of Nuevo LeónLeón

Economic Growth with Equity to Reduce Economic Growth with Equity to Reduce PovertyPoverty

““We recognize that remittances are an important We recognize that remittances are an important source of capital in many countries of the source of capital in many countries of the Hemisphere. We commit to take concrete actions Hemisphere. We commit to take concrete actions to promote the establishment, as soon as to promote the establishment, as soon as possible, of necessary conditions, in order to possible, of necessary conditions, in order to achieve the goal of reducing by at least half the achieve the goal of reducing by at least half the regional average cost of these transfers no later regional average cost of these transfers no later than 2008”. than 2008”.

"in the case of Honduras, it is worth mentioning that the principal source of income in Honduras today is not the big exporting activity, nor the assembly plant, nor the traditional crops like coffee and banana, nor is it even tourism.

It is the remittances of poor Hondurans in the United States, who with exemplary solidarity, give back to other poor Hondurans, as a very effective

social distribution mechanism". Remarks by the President of Honduras, Ricardo Maduro, during the Second Plenary Session of the Special Summit of

the Americas

Cost to Send $200 form the U.S. to Home Countries (June Cost to Send $200 form the U.S. to Home Countries (June 2004)2004)

Source: Remittances to Latin America and the Caribbean: Issues and perspectives on development, Orozco Manuel

0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00%

Cuba

Jamaica

Haiti

Dominican Rep.

Mexico

Guatemala

Colombia

Nicaragua

El Salvador

Bolivia

Ecuador

Honduras

Peru

Venezuela

Latin America2001 2002 2003

In the OAS Context: In the OAS Context: Working Group for the Inter-American Program for the Working Group for the Inter-American Program for the Promotion and Protection of the Human Rights of Promotion and Protection of the Human Rights of Migrants - Migrants - September 30th and October 1st 2004,

- Importance of remittances flows for recipient countries.-Transnational networks to enhance the remittances as a tool for development.- Programs for investment and saving within the recipients communities - Ways to accomplish the goal of reducing the cost of sending remittances.

Summit Implementation Summit Implementation

- How to effectively measure the costs of transfers and show trends in these costs, - What the public sector can do to increase the development impact of remittance funds

International Organization for International Organization for Migration –New Member of the JSGWMigration –New Member of the JSGW

IOM is committed to the IOM is committed to the principle that humane and principle that humane and orderly migration benefits orderly migration benefits migrants and society. migrants and society.

Leading international organization for migration, IOM acts with its partners in the international community to:  Encourage social and economic development through migration   Uphold the human dignity and well-being of migrants.

Assist in meeting the growing operational challenges of migration management.

Counter-Trafficking

Labor Migration

Migration Health Services

Assisted Voluntary Returns

Technical Cooperation on Migration

Migration Research

Migrant Movement Processing

and Assistance

Fourth Summit of Fourth Summit of the Americasthe Americas Argentina 2005Argentina 2005

› First week of November 2005

› Theme: “Creating Employment to Confront Poverty and Strengthen Democratic Governance ”.

› Progress report on meeting the goal of reducing the cost of remittances

Civil Society Participation: Regional Forums - Present recommendations to be considered by the Officials

Engaging in the Summit Engaging in the Summit ProcessProcess

• Dialogue with National CoordinatorsUnited States of AmericaAmbassador John MaistoNational Summit CoordinatorTel: (202) 647-3141Fax: (202) 736-7618 Next meeting of the Summit Implementation Review Group Oct. 19-20, 2004. Washington

D.C.

• Participation in Civil Society and Government Preparatory meetings

Office for the Summit ProcessOffice for the Summit Process www.summitsoftheamericas.org Organization of American States

1889 F Street NWWashington, DC 20006 USA

Tel:202.458.3127, Fax: 202.458.3665

summit-info@oas.org