Methodologies for Measuring the Impact of Remittances Prepared by:

1. Methodologies for Measuring the Impact of Remittances Prepared by: Isam Sbaih- Balance of Payments Amneh Al- Natshi- National Accounts Presentation for: ADETEF- MEDSTAT III Roma, Italy- 2011 June, 2011

2. Background The kind of methods used to collect remittances. Indirect methods for estimating remittances. Data sources used to collect remittances. Coverage of remittances. Data dissemination policy. Level of classification breakdown are data on remittances published. The sources for data on the contribution of remittances on household budget. Household surveys collect information on the origin and purpose of the received remittances. The methods used to aggregate remittances received by the households. Remittances from BPM5 to BPM6 Remittances Received, in Palestinian Territory for the year 2009 Plans for future improvements Contents

3. Background • A snapshot of geography of Palestine • The Palestinian Territory is composed of two separated sub regions: (West Bank and Gaza Strip)

4. West Bank Location: Middle East, West of Jordan Area: Total area: 5860 sq. Km Land boundaries: Total 404 Km, Israel 307 Km, Jordan 97 Km Gaza Strip Location: Middle East, bordering the Mediterranean Sea, between Egypt and Israel Area: Total area: 360 sq. Km Coast line: 40 Km geography

5. Macro Economic Performance

6. remittances from Palestinian outside Palestine (non-residents). compensation of Palestinian workers, working in Israel. The kind of methods used to collect remittances

7. The estimation for distribution of transfers for building purposes to be recorded as a capital transfers or FDI in Balance of Payments. The compensation other than the wages for Palestinian workers working in Israel. Indirect methods for estimating remittances

8. Household- Labor Force Survey (LFS). Household Survey Annexed with labor force survey, for households transactions with abroad Economic Surveys (ES). Administrative Records (forms)- ministry of education, ministry of health, ministry of labor, ministry of civil affairs, consulates (diplomatic representatives) and NGOs. Indirect Estimations Data sources used to collect remittances

9. Inflows for Palestinian working abroad (mainly in Israel) for those workers stay outside Palestine less than one year, used in measuring Net Factor Income Account (GNI) for NA, and compensation of employees for BOP. Inflows (in cash, for consumption purposes) received from the Palestinian workers and families stay outside Palestine more than one year, used in measuring (GNDI) for NA, and Current Transfers for BOP. Coverage of Remittances:

10. Inflows (in kind, for development purposes) received from the Palestinian workers and families stay outside Palestine more than one year, used in measuring Saving Account for NA, and Capital Transfers for BOP. The definition including all transfers in cash and kinds comes from Palestinian families/ workers abroad and the Palestinian non-residents visit Palestine.

12. No dissemination policy, but the remittances included in BOP Items and National Accounts, and it was disseminated in aggregates. Data dissemination Policy

13. As in BOP Items: Compensation of employees (credit). Current transfers – other sectors (credit). Capital transfers – other sectors (credit). level of classification breakdown are data on remittances published

14. Three household sample surveys: labour force survey, measuring compensation of Palestinian workers, working in Israel. A special survey annex, attached with labour force survey, for measuring remittances from Palestinian outside Palestine. Palestinian Expenditure and Consumption Survey (PECS), for measuring household budget. The sources for data on the contribution of remittances on household budget

15. In remittances of workers included in labour force survey No, for remittances included in the special survey annex, attached with the labour force survey. household surveys collect information on the origin and purpose of the received remittances

16. For labour force survey used, (population * percent of labour force * percent of employed persons * percent of persons work in Israel * working days in month * daily wage) + (part of total wages considered as compensations) according to the ministry of labour records. The methods used to aggregate remittances received by the households

17. For the special survey annex used, (remittances from the survey / number of households in the sample) * (number of total households) in Palestinian territory.

18. Remittances from BPM5 to BPM6

19. Cont.Remittances from BPM5 to BPM6

20. Remittances Received, in Palestinian Territory for the year 2009 as BPM5

21. Data of Remittances in Palestinian Territory as BPM6

22. 1. Concerning the collection and compilation methods of remittance flows: Expand the questionnaires through separate questions for received from workers other than the nonresidents abroad. For the workers working abroad other than Israel. Plans for future improvements

23. 2. Concerning the dissemination of data on remittance flows: Separate a special Items for remittance flows in NA and BOP as mentioned in level of classification breakdown are data on migrant remittances, to be more clear. 3. Concerning the processing of households’ remittances: Improving the sampling process to be more representative.

24. Thank You