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:   Rwanda Issues Arrest Warrant for Former Envoy (news)
The East African
28 July 2015

Rwanda has through Interpol issued a warrant of arrest for its former envoy who fled into exile in March this year amid allegations of embezzlement of party funds. [read more]

Rwanda:   Former Minister Mitali On Interpol Wanted List (news)
The New Times
29 July 2015

The International Police (Interpol) has issued a red notice against the immediate former Rwandan ambassador to Ethiopia, Protais Mitali who is wanted by Rwandan judicial authorities for prosecution. [read more]

Rwanda:   Embrace Culture of Regular Medical Checkups (editorial)
The New Times
29 July 2015

On Monday, Rwanda marked the World Head and Neck Cancer Day, the first time the country was commemorating the international day as it looks to increase awareness about the disease. The day seeks to ... [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!


Today's Featured News
Mozambique Ruling Party Faces Tough Contest

Renamo supporters: Ruling Frelimo faces a stern challenge at Wednesday's polls from...

Surge in Central African Republic Violence

African Union troops in Bangui (file photo): The UN has expressed alarm...

Nigeria, Cameroon, Ghana Get Crucial Wins

Asamoah Gyan of Ghana (file photo): The Super Eagles have boosted their...