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


IGAD: Artificial solution on South Sudan conflict 2015-01-30 19:33:13 By James Gatdet Dak On Thursday, 29th of January, 2015, heads of state and government of the African regional bloc, the Intergovernmental Authority on Development (IGAD), served the warring (...)

Arms transfers to South Sudan ensure a violent future for a people desperate for peace 2015-01-28 14:06:46 By Geoffrey L. Duke Peace advocates around the world were shocked by news of China’s shipment of arms to the Government of South Sudan in June 2014. The shipment reportedly included $38 million (...)

A reading of the Arusha intra-SPLM agreement 2015-01-28 09:39:38 By: Dr Lam Akol On the 21st of January 2015, the three factions of the SPLM (now calling themselves ‘Groups’) inked in Arusha, Tanzania, an agreement dubbed “Agreement on the Reunification of the (...)


MORE








Latest Press Releases


Sudan’s Security Services raid and order closure of Mahmoud Mohamed Taha Cultural Centre 2015-01-24 03:41:41 African Centre for Justice and Peace Studies (23 January 2015) At 11am on 18 January, the National Intelligence and Security Services (NISS) of Omdurman, Khartoum state, raided the Mahmoud (...)

Women groups announce their support for Sudan Call 2015-01-17 08:34:07 Position Statement from the Women’s Political Forces and Civil Society organizations and Groups on the Sudan Call To the People of Sudan We, the undersigned women, are fully motivated by our (...)

Norway grants US $1.9 million for humanitarian needs in Darfur 2014-12-16 06:47:08 The United Nations World Food Programme (WFP) - KHARTOUM Norway helps provide nutritious food to malnourished families in Sudan 14 December 2014 KHARTOUM – The United Nations World Food Programme (...)


MORE

Copyright © 2003-2015 SudanTribune - All rights reserved.