We need to fix the leaks in remittance transfer systems around the world

From Global development | The Guardian Fri Feb 8 2013, 07:08:36

Policymakers need to step in to reduce transaction costs on migrant workers' remittances. Massimo Cirasino suggests how

The most visible impact the diaspora has on development comes in the form of remittances - the US $400bn (£254bn) migrant workers sent home to their families in 2012. And every year, that soaring sum keeps breaking records. Food, housing, education, healthcare and more are paid for every day by workers who make their living abroad. But, like a faulty tap, there is a leak in migrant workers' remittances.

Here's where the leakage happens. A large proportion of the money is drained away by the transaction costs of sending money internationally. Given the typically low incomes of migrants and the small amount of each remittance transfer, too much is being spent on these transactions - and too little of the money is reaching migrants' families.

In the same way a plumber would fix a dripping tap, the professionals who work in the global financial system have a responsibility to ensure money is safely transferred from Point A to Point B in every transaction, and that leaks from remittances are fixed.

[view whole blog post ]
 See More    |     Report Abuse


You might also be interested in the following news stories:

Rwanda:   L'immigration néerlandaise mise en cause (news)
Radio France Internationale
19 October 2014

Les services néerlandais d'immigration et de naturalisation (IND) ont signifié dans une lettre à Lin Muyizere, le mari de l'opposante Victoire Ingabire, qu'ils allaient lui ... [read more]

Rwanda:   Le Président du FIDA, Kanayo F. Nwanze rencontrera le Chef de l'état du Rwanda, Paul Kagame et certains Ministres (press release)
International Fund for Agricultural Development
20 October 2014

Investissements intelligents face au climat, investissements dans les petites exploitations agricoles en faveur des femmes rurales et des jeunes au centre des discussions [read more]

Rwanda:   Buy Safe Appliances, Protect Ozone Layer (news)
The New Times
19 October 2014

Last month, Rwanda joined the rest of the world to mark the international day for the preservation of the Ozone layer; with a walk to raise awareness on the need to phase-out ozone depleting ... [read more]



blogAfrica is allAfrica.com's platform to help you keep an ear on the African blogosphere. We draw diverse voices from around the world who post regularly and insightfully about African issues. Bloggers, submit your blog's rss-feed!