Migrants’ Billions Put Aid in the Shade
▻http://www.globalpolicy.org/social-and-economic-policy/financing-for-development-1-45/international-aid-1-126/52237-migrants-billions-put-aid-in-the-shade.html?itemid=id#47826
In 2012, 214 million migrant workers globally, sent $530billion in remittances home, according to the World Bank. These money transfers often exceed aid and foreign investments received by some countries and can contribute to nearly 50% of a country’s GDP. Typically, remittances are subjected to a transfer fee of approximately 9%, reducing the monetary support for workers’ families. Often, however, up to 20% of money migrants send is lost to high transfer fees charged by companies looking to profit from this group. Debates around whether this money is a potential alternative to foreign aid have led countries like Rwanda to create “solidarity funds” or other mechanisms for managing this type of overseas funds. Meanwhile, proposals to lower transfer fees could help liberate more money for recipient families. Rather than considering remittances as potential aid supplements, greater focus must be given to improving aid effectiveness and addressing existing issues like migrant worker rights.
By Claire Provost
Guardian
January 30, 2013
For decades it was a largely unnoticed feature of the global economy, a blip of a statistic that hinted at the tendency of expatriates to send a little pocket money back to families in their home countries.
But now, the flow of migrant money around the world has shot up to record levels as more people than ever cross borders to live and work abroad. It’s known as remittance money, and in 2012 it topped $530bn (£335bn), according to the latest World Bank figures.