Excellencies,
Colleagues,
Ladies and Gentlemen,

More than 215 million people around the globe live outside of the countries they call home  — myself included.

Some of us are lucky to have left for better opportunities. Others are forced to leave, escaping conflict, hunger or destitution. Whatever the reason, we all have a profound connection to our families, friends and communities back home.

The clearest expression of this connection is the more than 350 billion dollars in remittances that migrant workers will send to their families in developing nations this year. These remittances provide the food, clothing and shelter for millions of people around the world.

The depth of the connection is also seen in the quick responses from the diaspora to emergencies. Whenever there is a natural catastrophe, political upheaval, or economic strife, the diaspora is there to extend a helping hand to those at home.

But the role of the diaspora goes far beyond just meeting short-term needs. Diasporas also play a vital role in long-term development.

FFR

When IFAD released the first-ever estimate of remittance flows to developing countries, the sheer size of the global flow was met with disbelief.

Since that day, the Financing Facility for Remittances has worked closely with governments, the private sector and civil society to expand access to finance and to maximize the development impact of this vital flow.

As we approach the fifth year of the FFR, the Facility is drawing on the lessons from almost 50 innovative projects throughout the world, scaling-up key initiatives, identifying new opportunities, and mapping-out the road ahead.

The FFR is undertaking many new initiatives. For example, it is helping to modernize postal networks so that they can conduct financial services efficiently.

Post offices offer a largely untapped resource for rural development. There are 660,000 post offices worldwide, with twice as many locations as the number of Western Union agents.

An FFR project undertaken in West Africa by the Universal Postal Union enabled 355 rural post offices to offer electronic money transfers. Remittances sent through the system now cost half as much and transfer times have been reduced from two weeks to two days. 50,000 families have already benefitted from these new facilities.

The project was so successful in bringing financial services to remote communities that it is now being replicated and scaled up in Central and South-East Asia, holding the promise of cheaper, faster, financial services for millions of people.

Another initiative launched by the FFR addresses the immense promise of mobile financial services. From M-Pesa in Kenya to EasyPaisa in Pakistan, mobile phones are now bringing financial services to people, rather than forcing people to go to financial service providers, while at the same time eliminating the high cost structure that makes more traditional rural financial services so expensive.

As you know, the vast majority of remittances are sent through the private sector. This includes traditional money transfer organizations, private banks and other commercial entities. Reshaping the remittances market means identifying business models that are pro-poor, but also pro-business.

Thanks to its status as a multi-donor fund, the FFR has spearheaded IFAD’s work with the private sector. For example, the FFR is helping microfinance institutions drive local development by offering remittances services and exploring innovative ways of mobilizing deposits from the diaspora and then using these funds as the foundation on which to lend to the broader community.

DIA

Growth generated by agriculture is at least twice as effective in reducing poverty as growth generated by other sectors. For most developing countries, agriculture provides basic necessities, employment, and ultimately creates a base for social stability and broader economic growth.

Over the next five years, diasporas throughout the world will send home more than 1.5 trillion dollars.

If we can find new ways to invest even a fraction of those funds in rural agriculture, the potential returns for society are enormous. It would contribute significantly to creating jobs, enhancing food security and fostering stability in countries emerging from strife.

In May, I had the privilege to launch the Diaspora Investment in Agriculture initiative with United States Secretary of State, Hillary Clinton.

Together, IFAD and the U.S. Department of State believe that diaspora investment in agriculture can help bridge the period between the end of conflict, and the beginning of development.

Today, I am happy to announce that IFAD is sending the first grant under the DIA initiative to the Executive Board. The grant will cover three countries: Somalia, Sudan and Southern Sudan.

I am very pleased that the Deputy Prime Minister and Minister of Foreign Affairs of Somalia is with us today. I am sure the insights of His Excellency Mohamed Ibrahim will benefit all of us in our work in remittances. The monetary contribution of the diaspora to the Somali economy is one of the highest in the world – with according to some estimates, remittances making up nearly 40 per cent of GDP – and the Transitional Government itself is made up of a significant number of former diaspora members, including the Minister himself.

Closing

Before I close, I would like to extend the challenge that I issued in Washington when we launched the DIA initiative: Let us deepen our commitment to long-term investment in agriculture and food security. Let us mobilize our expertise, our resources, and our dedication to invest in our home communities. Let us turn our backs on conflict and fragility and together lay the foundations of prosperity.

Let us create a world where migration is a matter of choice, not of necessity.

Thank you.

Rome, 17 November 2011