Home | News    Thursday 29 November 2012

UN: Remittance to poorest nations increases to $27 billion

separation
increase
decrease
separation
separation

By Tesfa-Alem Tekle

November 28, 2012 (ADDIS ABABA) – Remittances sent to poor nations from family and friends living abroad has increased from $3.5 billion in 1990 to $27 billion in 2011, according to a new United Nations report.

The eight fold increase over the last 21 years from citizens of 48 of the world’s least developed countries was documented in a report presented at the United Nations Conference on Trade and Development (UNCTAD) held in Ethiopian capital, Addis Ababa on Monday.

Launching the report UNCTAD’s Director of the Africa and Least Developed Countries, Tesfachew Tafere, said “the world’s least developed countries should take steps to draft law towards utilizing the remittance properly.”

The conference, which cited Ethiopia’s policy towards their Diaspora as a good example, urged governments of poor countries to reduce the transfer costs associated with remittances. Transfer fees, according to the report, often run as high as 12 percent of the money remitted - about one-third more than the global average.

The state-owned commercial Bank of Ethiopia has in recent years endorsed a new banking law, which allows the Diaspora to have savings accounts in US Dollars.

According to the bank, there has been a yearly rise in the amount of money sent by the Ethiopian Diaspora back to the country since the new initiative was put in place.

The World Bank says the Ethiopian Diaspora currently remit around $1.5 billion a year, while UNCTAD estimates the figure to be around $1 billion.

However, further funds, not included in these figures are said to be remitted to Ethiopia through transfer systems that do not involve the official banking system.

Currently, there are an estimated 27.5 million migrants from the world’s 48 least developed countries living abroad. According to the report, entitled “The Least Developed Countries Report 2012: Harnessing Remittances and Diaspora Knowledge to Build Productive Capacities”, remittances have steadily surpassed the value of foreign direct investment to the countries concerned during the past decade.

The UN trade and development body stressed that remittances can play a major role in alleviating poverty and as a means of important inputs to boost developing economies.

However, UNCTAD noted that with the growing danger of global economic and financial threats, the poorest nations must be ready to review their existing policies on to how remittances should be used to promote industrial development and structural transformation.

“This may entail a range of policy interventions, such as domestic and regional development policies aimed at inducing private investments,” the UN report said.

“Appropriate financial and regulatory reforms designed to reduce transaction costs and promote greater financial inclusions and credit provision for small- and medium- sized enterprises."

According to the World Bank, remittance flows to developing countries are expected to grow by 6.5 percent this year, 7.9 percent in 2013, 10.1 percent in 2014 and 10.7 percent in 2015.

(ST)

Comments on the Sudan Tribune website must abide by the following rules. Contravention of these rules will lead to the user losing their Sudan Tribune account with immediate effect.

- No inciting violence
- No inappropriate or offensive language
- No racism, tribalism or sectarianism
- No inappropriate or derogatory remarks
- No deviation from the topic of the article
- No advertising, spamming or links
- No incomprehensible comments

Due to the unprecedented amount of racist and offensive language on the site, Sudan Tribune tries to vet all comments on the site.

There is now also a limit of 400 words per comment. If you want to express yourself in more detail than this allows, please e-mail your comment as an article to comment@sudantribune.com

Kind regards,

The Sudan Tribune editorial team.

Comment on this article



The following ads are provided by Google. SudanTribune has no authority on it.


Sudan Tribune

Promote your Page too

Latest Comments & Analysis


South Sudan famine is a wake-up call to revive dead peace deal 2017-03-20 15:57:01 By Brian Adeba News that a famine has been declared in South Sudan is yet another stark reminder of the ever evolving nature of war-induced fragility in Africa’s newest country. As the world (...)

Africa’s next level of economic transformation 2017-03-20 05:57:00 By Jim Yong Kim The G20 finance ministers met last week in Germany to discuss critical challenges facing the global economy, from climate change to migration to humanitarian emergencies like the (...)

Mistake any armed opposition must not do 2017-03-20 05:51:57 By James Nguen South Sudan has been at war by itself since 15 of December 2013. This internal strife sent the new country to a new low and finally to a failed state status by all accounts. This (...)


MORE






Latest Press Releases


Statement by South Sudanese Communist Party on the National Dialoguel 2017-03-22 05:44:42 The Communist Party of South Sudan On the Initiative of the National Dialogue The initiative taken by the President of the Republic of South Sudan declaring a need for a national dialogue is an (...)

An Appeal to President of the Republic of South Sudan 2017-03-15 07:22:45 Dear. Mr. President, I write to appeal to you for the release of political detainees now in the custody of the National Security Service at Jebel and other detention facilities. In doing this, I (...)

Militias of Bashir’s Regime and the Proxy War (1) 2017-02-08 21:49:09 Sudan Democracy First Group Militias of Bashir’s Regime and the Proxy War (1) War in the Blue Nile: Militias in the hunt of refugees and displaced population Introduction Throughout its rule, (...)


MORE

Copyright © 2003-2017 SudanTribune - All rights reserved.