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Election jitters Correction: Africa's prospects Reprints Related items Somalia: Piracy and much worseOct 2nd 2008 Ethiopia: A brittle Western ally in the Horn of AfricaNov 1st 2007An extra worry is that the world's financial turmoil may reduce remittances from the Horn's vast number of émigrés, putting more people at risk of starvation.
Instead of giving importance to the interest rate in their economic policies, Muslim countries should try to increase per capita income, reduce remittances received and national expenditure, and improve employment conditions in their countries to increase saving.
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According to assimilation theory, time spent in the host country should reduce remittance-sending.
Additionally, Indian officials are pushing the G20 to reduce remittance fees and more remittances will be sent as India continues to urbanize, which constitutes one-third of the population currently.
We should strongly support the G-20s commitment to reduce remittance transaction costs.
In fact the current economic turmoil is a very immediate concern for Africans with anticipated reduced aid but more seriously reduced remittances from Africans like Ms. Moyo who live and work outside of Africa!!
The post-Brexit slump in the pound will cost developing countries nearly $4bn£3.1bnbn) in the coming year, with reduced trade and aid, risk-averse financial markets, lower growth and sharply reduced remittances all playing a role, a report shows.
She also pointed out that high food prices had reduced remittances sent from urban centres.
The bank said developing economies should prepare for declining investment from abroad, less-robust exports, and reduced remittances.
It also said water availability and land tenure systems, floods and droughts as a result of climate change, increased incidences of diseases in livestock and crops, high transport and reduced remittances were contributing factors.
And it will be particularly difficult at a time when the country's main trading partner, the European Union, is itself dealing with an economic crisis that has depressed export-oriented industries such as textiles and is reducing remittances sent back by migrant workers, the country's lifeblood.
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