Save More in Migration: Supporting Migrant Workers from Georgia and the Republic of Moldova to Enhance Savings, Remittances & Sustainable Benefits of Labour Migration

Elements of Innovation

• Regular Pathways
• Diaspora Engagement
• Data, Research and Technology

What is the project about?

Every year, Israel witnesses the influx of migrant workers hailing from Georgia and the Republic of Moldova, motivated to secure earnings that will bolster their future livelihoods and overall well- being upon their eventual return. Nonetheless, the realization of long-term financial aspirations often remains elusive, hindered by a multitude of factors.

In this context, the overarching goal of this project is centered on bolstering governmental and institutional capabilities to foster heightened financial inclusivity. This effort seeks to empower migrant labourers and their families, equipping them with improved means to reach their financial goals and channel their accumulated funds toward opportunities that nurture sustainable livelihoods and heightened long-term prosperity. This has a positive impact for both the countries of origin and destination.

How is the project innovative?

The project's innovation is underscored by its adaptation of an academic remittance investment approach to the sphere of migration. The initiative is guided by insights from behavioral economics, particularly drawing on the Save More Tomorrow initiative pioneered by scholars at the University of Chicago and University of California, Los Angeles (UCLA) on the economics of retirement savings.

On the basis of these principles, the project catalyzes a transformative shift in the financial landscape for migrant workers hailing from Moldova and Georgia. Significantly, a targeted subset of beneficiaries in Israel, the country of destination, benefit from regular motivational prompts to stay on-track with their financial goals. In the post-migration phase, Israel’s Agency for International Development Cooperation will roll-out tailored entrepreneurship trainings to support migrants translate accumulated savings into viable business ventures. This solidifies the link between remittances and sustainable economic growth, highlighting the value and potential applicability of the initiative in different contexts.