Trends in Remittance: Key Insights from the World Bank's Migration and Development Brief

1. Overview of Remittances

• Definition: Remittances are funds sent by migrants to their families or relatives in their home countries while they are working abroad. These transfers are vital for recipient countries, contributing significantly to household incomes and foreign exchange reserves.
• Methods: Remittances can be sent via wire transfer, electronic payment systems, mail, draft, or cheque.

2. Global Trends in Remittance Flows (2023)

• Overall Flows: After strong growth in 2021-2022, remittance flows to low- and middle-income countries (LMICs) moderated in 2023, totaling approximately $656 billion.
• Regional Trends:
• Latin America and the Caribbean: Increased by 7.7%.
• South Asia: Increased by 5.2%.
• East Asia and Pacific: Increased by 4.8% (excluding China).
• Sub-Saharan Africa: Slight decline of 0.3%.
• Middle East and North Africa: Significant drop of nearly 15%.
• Europe and Central Asia: Decline of 10.3%.

3. Future Projections

• Growth Rate: Remittances to LMICs are expected to grow at a rate of 2.3% in 2024, though growth will vary by region.
• Risks: Potential risks include weaker economic growth in high-income migrant-hosting countries and volatility in oil prices and currency exchange rates.

4. Costs of Sending Remittances

• Global Average Cost: As of Q4 2023, the average cost of sending $200 was 6.4%, up from 6.2% the previous year. This is still above the Sustainable Development Goal (SDG) target of 3%.
• Digital vs. Non-Digital Costs: Digital remittances are cheaper, with a cost of 5%, compared to 7% for non-digital methods.

5. Remittances to India

• Top Recipient: India remained the largest recipient of remittances globally, receiving $120 billion in 2023.
• Growth Rate: Growth in remittances to India is expected to slow to 3.7% in 2024 from 7.5% in 2023.
• Projections: Remittances to India are anticipated to rise to $124 billion in 2024 and $129 billion in 2025.
• Factors Influencing Flows:
• Labour Markets: Strong labor markets in the United States and Europe supported the high level of remittances.
• GCC Outflows: Reduced outflows from GCC countries due to declining oil prices and production cuts contributed to the slowdown.
• Diversified Migrant Pool: India's diversified migrant workforce, including both highly skilled workers in OECD markets and less-skilled workers in GCC countries, provides stability to remittance flows.
• UAE Contributions: Remittances from the UAE, which constitute 18% of India's total remittances, were boosted by the 2023 free trade agreement (FTA). The FTA promotes the use of local currencies and enhances payment and messaging systems between India and the UAE.

6. Strategic Implications

• FTAs and Local Currencies: The FTA with the UAE is instrumental in increasing remittances through formal channels by using dirhams and rupees for transactions, thus benefiting India's remittance inflows.

Overall, while global remittance flows have faced some challenges and variabilities, the strategic measures such as FTAs and the diversification of migrant sources help stabilize and potentially increase remittance flows to countries like India.

Paraguay recently joined as the 100th country in the International Solar Alliance (ISA).

Global Energy Transition Landscape:

• Current Challenges:
• The trajectory towards sustainable development is not aligned with the Paris Agreement’s target of limiting global warming to 1.5°C.
• Current projections suggest a moderate 4% reduction in global emissions by 2050, potentially pushing global warming to 2.4°C.
• To meet the 1.5°C limit, global emissions need to be cut by 43% within this decade.
• Solar investment required by 2030 is estimated between $1.6 - $2 trillion.

Solar Energy as a Solution:

• Advantages:
• Accessibility: Solar energy is the most versatile and accessible renewable energy source.
• Cost-Effectiveness: Features a low Levelized Cost of Electricity (LCOE) of $0.049/kWh and can produce substantial energy.
• Lower Carbon Footprint: More environmentally friendly compared to other renewables like hydropower and bioenergy.
• Decentralization: Potential for off-grid systems enhances accessibility.
• Technological Advancement: Superior technological developments compared to other renewable sources.
• Growth Rate: Solar energy has a remarkable growth rate of 21% CAGR (2015-2022), surpassing wind, bioenergy, and hydro energy.
• Future Contribution: Projected to contribute 27% to the total energy mix by 2030, requiring 3500 GW of capacity building.

Significance of ISA:

• Energy Equity and Justice: Tailors approaches for different income levels and countries, ensuring equitable access to solar technology.
• Global Solar Market Creation: Encourages large-scale deployment and collaborative development, like PM KUSUM for agriculture.
• Standardized Policies: Implements standardized procedures and agreements to build investor confidence and reduce risks.
• Collaborative R&D: Promotes pooled resources for research and development, especially in developing countries.
• Shift in India's Foreign Policy: Positions India as a leader in global sustainability, bridging gaps between Global North and South, and providing new norms in global energy governance.

Challenges for ISA:

• Coordination Issues: Member state coordination problems may hinder effective implementation of initiatives.
• Geopolitical Challenges: Dominance of China in the solar supply chain could impact energy equity.
• Private Sector Participation: Reliance on the public sector in many developing countries might limit the involvement of the private sector, affecting energy equity.
• Implementation Issues: Land acquisition problems and ecological concerns related to large-scale solar deployments. As of 2023, only 11 out of 50 sanctioned Solar Parks have been completed.
• Technical Challenges: Issues such as grid integration need addressing.

Initiatives by the International Solar Alliance (ISA)

1. One Sun One World One Grid (OSOWOG):

• Objective: To connect different regional grids through a unified global grid.
• Purpose: Facilitates the transfer and sharing of renewable energy across borders, enhancing the efficiency and reach of solar power.

2. Solar Technology Application Resource Centre (STAR C):

• Objective: Focuses on capacity-building and strengthening institutional frameworks.
• Purpose: Provides resources, training, and support to enhance the technical and managerial capabilities of solar energy projects.

3. Global Solar Facility:

• Objective: To promote solar investments in underserved regions and geographies, particularly in Africa.
• Purpose: Catalyzes funding and development of solar projects, aiming to expand access to solar energy in areas with limited infrastructure.

4. Development of Large-Scale Solar Power Projects:

• Objective: Establish large-scale solar parks in clusters or groups of ISA member countries.
• Purpose: Promotes collaborative development of extensive solar power projects, leveraging economies of scale and shared resources among member nations.

5. ISA Solar Fellowship for Mid-Career Professionals:

• Objective: To enhance the skills and knowledge of professionals managing solar energy projects.
• Purpose: Provides advanced training and education to improve the management and implementation of solar initiatives.

6. International Solar Festival:

• Objective: To foster impactful global partnerships and collaborations.
• Purpose: Creates a platform for stakeholders to share knowledge, showcase innovations, and build partnerships in the solar energy sector.

These initiatives collectively aim to advance the deployment and management of solar energy worldwide, strengthen global cooperation, and address the diverse needs of different regions.

Way Forward:

• Address Regional Disparities: Resolve challenges related to solar energy access and adoption costs.
• Ensure Energy Security and Equality: Focus on inclusive growth and equity in energy distribution.
• Promote Energy Equality: Scale up renewable energy while ensuring all stakeholders are included in the process.

Conclusion:

• India's initiatives, including the ISA, the Green Hydrogen Innovation Centre, and the Global Bio-Fuel Alliance, highlight its role in shaping global renewable energy discourse. These efforts are rooted in the traditional Indian ethos of “Vasudhaiva Kutumbakam,” emphasizing global unity and shared responsibility in addressing climate change.

 The Indian Council of Agricultural Research (ICAR) introduced the ‘One Scientist-One Product’ program on July 16, 2024, to enhance agricultural and animal husbandry research by leveraging the expertise of its scientists.

Key Features of the Program:

• Objective: Each of ICAR's 5,521 scientists will focus on developing a specific product, technology, model, concept, or notable publication.
• Annual Planning: Scientists will select their projects at the beginning of each year.
• Monitoring: Progress will be reviewed quarterly at the institute level and biannually at the headquarters.
• Duration: The program will operate for five years, initially concentrating on high-yielding oilseeds and pulses.

Focus Areas and Goals:

• Seed Development: ICAR aims to develop 100 new seed varieties and 100 farm technologies within the first 100 days of the program.
• Bio-Fortified Crops: ICAR's efforts have already led to the cultivation of bio-fortified crops on approximately 16 million hectares (Mha) in 2023-24.
• Variety Releases: Since 2014-15, ICAR has released 2,593 high-yielding seed varieties, including 2,177 climate-resilient and 150 bio-fortified varieties, significantly enhancing crop production even under adverse conditions.

Significance of the ‘One Scientist-One Product’ Program

1. Enhanced Focus and Accountability:

• By assigning specific products or technologies to individual scientists, the program aims to increase accountability and focus on research outcomes.

2. Accelerated Innovation:

• The initiative is designed to fast-track the development of innovative agricultural solutions, particularly in high-priority areas like oilseeds and pulses.

3. Improved Research Outcomes:

• Regular monitoring and evaluation will ensure that research projects align with ICAR’s strategic goals and contribute to tangible advancements in agriculture and animal husbandry.

4. Strategic Goal Achievement:

• The program supports ICAR's broader goals of increasing agricultural productivity, enhancing climate resilience, and improving food security through the development of high-yielding and bio-fortified crop varieties.

Potential Impact

• Agricultural Productivity: Development of high-yielding and climate-resilient seed varieties could lead to increased crop productivity and stability.
• Food Security: Improved seed varieties and farm technologies can contribute to better food security by boosting production and reducing losses.
• Scientific Excellence: The program encourages a culture of innovation and excellence within ICAR, positioning it as a leader in agricultural research and development.