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:

Liberia:   Senate Elections Held Despite Ebola Threat (news)
Deutsche Welle
20 December 2014

Voters who turned out for senate elections in Liberia were met with health workers at the door of polling stations to check for Ebola. The elections had been delayed twice due to the outbreak. [read more]

Zambia:   Ruling Party Agrees on Presidential Candidate (news)
The Times of Zambia
20 December 2014

PATRIOTIC Front (PF) presidential candidate Edgar Lungu yesterday successfully filed his nomination papers to contest the 2015 presidential elections, bringing an end to the differences that had ... [read more]

Nigeria:   'Large Number' of Boko Haram Militants Killed (news)
Premium Times
21 December 2014

A large number of terrorists were on Friday killed by troops of the Nigerian military in Borno State, the defence headquarters has said in a statement. [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!