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

From Global development | The Guardian Fri Feb 8 2013, 12:08:36

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:   Two District Education Officials Arrested Over Teacher Recruitment (news)
The New Times
1 March 2017

Two directors in charges of education in Kayonza District have been arrested following investigations into the recent recruitment of teachers in the district, which have unearthed gross ... [read more]

Kenya:   Ugandan, Rwandese Post-Poll-Loss Claims Split House Team (news)
The Nation
1 March 2017

MPs are divided whether foreigners should be paid Sh538 million in claims over losses incurred in the 2008 post-election violence before it is confirmed that all claims by Kenyans have been ... [read more]

East Africa:   In Uganda, Money Can Buy an EALA Seat - in Rwanda It Is Godfathers (news)
The East African
26 February 2017

For the past couple of weeks, the media in Uganda has been awash with claims of vote buying by individuals vying to represent the country in the East African Legislative Assembly (EALA). And mayhem ... [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!