Problems arise even before departure: people leave without contracts, not taking into account the real costs of living, while their relatives left at home thoughtlessly spend the remittances earned through hard work on current needs instead of investing.
Kubanych Musuraliev, head of the financial literacy group at the National Bank, in an interview with 24.kg, spoke about the importance of preparing migrants before going abroad and the government's plans to teach them financial management.
— What is the current situation with financial literacy among Kyrgyz citizens working abroad, particularly in Russia? Does the National Bank have any data or research on this?
— We assessed the level of financial literacy twice — in 2017 and 2021, using international methodologies.
The first study in 2017 aimed to determine the level of financial literacy among the entire population. As a result, out of a maximum of 21 points, the average score was 11.
In 2021, the study was conducted as part of a regional financial literacy project in CIS countries and included an analysis of differences by status, including migration status. According to this study, the average level of financial literacy in Kyrgyzstan was 11.6 points, while among migrants it was 11.8.
Thus, according to the data, migrants possess a higher level of financial literacy.
Based on the conducted research, we identified the profile of a person with low financial knowledge: these are residents of small towns and villages, women, and non-migrants with an average level of education.
— Why do migrants have a higher level of financial literacy?
— They interact more frequently with cash flows and remittances. They have planning skills: they know how much they earn, how much they can save, and how much to send home. Migrants are more engaged in financial matters.
However, it is worth noting that 11.8 points is still a low score. For example, in Germany, the highest level of financial literacy reaches about 16 points. There is no country in the world that has achieved the maximum level of financial literacy.
— What are the main problems you observe in the area of financial literacy among migrants? What mistakes do they make and what risks would you warn them about?
— According to various data, about half of the population does not keep track of their income and expenses, nor do they plan their finances. The level of fraud in Kyrgyzstan is twice as high as in other CIS countries. In 2021, 8% of respondents in Kyrgyzstan reported that they had become victims of fraud, while in other countries this figure averages 4%. This also applies to migrants, as they often encounter scams when looking for work.
We studied the statistics of the problems that migrants face upon returning home. Some returned due to a lack of work or low salaries, indicating that many go abroad hoping to find work without signing a contract or discussing the conditions. It is important to leave prepared.
The situation is gradually improving: migration guides have appeared, specialized websites for preparing for departure, and a Center for Employment of Citizens Abroad under the Ministry of Labor, which conducts informational and educational events. Thus, information is becoming more accessible.
— The National Bank is actively working to improve the financial literacy of the population. Do you have projects aimed at labor migrants?
— The National Bank implemented the first state program to improve financial literacy for 2016-2020. The program covered the entire population, especially the regions, as the main flow of migrants comes from there.
The National Bank participates in various state programs and concepts, including the migration policy concept adopted in 2021, which includes measures to improve financial literacy among migrants and their families. Together with the Ministry of Labor and the Ministry of Foreign Affairs, we prepared materials for Kyrgyz diasporas abroad to ensure that information reaches our migrants and their families.
Additionally, we conducted financial literacy workshops for Ministry of Labor employees to raise their awareness on this issue, as they work directly with migrants.
Since 2023, the National Bank has been actively collaborating with the International Organization for Migration (IOM). Currently, two projects are being implemented — a labor migration program and safe migration in the UK for those going for seasonal work. Within these projects, training sessions for migrants are being held in Osh and Bishkek.
Together with the IOM, we are developing a training module on financial literacy for migrants, which we plan to complete by the end of the year. Preliminary testing has already been conducted with private employment agencies and the Center for Employment of Citizens. Every Kyrgyz citizen going abroad for work will receive this information on financial literacy.
Moreover, since last year, we have been collaborating with the UN agency for agricultural development, which is implementing the Prime project in Central Asia. This project includes components to improve the financial literacy of migrants and their families, aiming not only to earn money but also to learn how to save and invest it.
— Most migrants from Kyrgyzstan work in Russia. Do you conduct seminars there or collaborate with local structures?
— The National Bank has financial literacy trainers who periodically travel to Russia to conduct seminars for our compatriots. We also organize online seminars for those who cannot attend in-person events.
The Russian side also conducts events to improve financial literacy, and our migrants can participate in them.
— Does the National Bank have a strategy for the coming years to enhance financial literacy among migrants, especially in Russia, where most Kyrgyz citizens reside?
— We plan to continue working on improving the financial literacy of migrants. In the coming years, a new strategy will be developed that will include a separate section dedicated to migrants.
Additionally, this year, the Secretary-General of the International Organization for Migration, Amy Pope, visited Kyrgyzstan, during which she met with the Prime Minister and announced the creation of a pre-departure training center for migrants and the reintegration of returning citizens. This will be an effective tool, as migrants are interested in acquiring practical knowledge, which will positively reflect on their work and the use of earned funds.
We will also continue to inform about financial literacy through our channels — website and social media, where we plan to create a training module for migrants.
