Making remittances cheaper should be a global goal: Affordability is identified as one of the most important barriers to remittance flows.
This makes remittances reliable sources of collateral for countries; having reliable sources of collateral, in turn, makes it easier and cheaper to secure loans.
Winner of 'the most creative way to present research' prize this week goes to Michael Clemens and Timothy Ogden for this lego stop motion video on making remittances a tool for development.
That is more than three times the global total in foreign aid, making "remittances" the main source of outside money flowing to the developing world.
The second derivative may be turning positive Trickle-down economics Full disclosure Reprints Related items Globalisation: Turning their backs on the worldFeb 19th 2009All of which makes remittances to developing countries more precious, and questions about their resilience more pressing.
Mexican immigrants and their more than 600 community clubs across the United States will send an estimated $8 billion to their homeland this year, making remittances this country's third-largest source of income, behind oil and tourism.
"It turns out that even a modest reduction in the cost of making remittance transfers adds up to a substantial amount compared to official aid".
Nakumatt, a Kenyan retailer, allows people living abroad to buy vouchers for its stores and then transfer them to their African friends and relatives, making remittance payments smoother.
In our framework, migrants make remittance and saving decisions at an early stage of migration, when their long term economic performance in the host country is still uncertain.
