Remittance - Wikipedia

A remittance is a non-commercial transfer of money by a foreign worker, a member of a diaspora community, or a citizen with familial ties abroad, ... Remittance FromWikipedia,thefreeencyclopedia Jumptonavigation Jumptosearch Moneytransferbyaforeignworkertotheirhomecountry Thisarticleisaboutthetransferofmoney,oftenbymigrantworkers.Forapaymentsentbyacustomertoabusiness,seeremittanceadvice.Foranallowancesenttoanexiledpersononconditionthattheydonotreturnhome,seeremittanceman. "WorkinPolandlegally"streetadvertisementinTransnistria. Aremittanceisanon-commercialtransferofmoneybyaforeignworker,amemberofadiasporacommunity,oracitizenwithfamilialtiesabroad,forhouseholdincomeintheirhomecountryorhomeland.Moneysenthomebymigrantscompeteswithinternationalaidasoneofthelargestfinancialinflowstodevelopingcountries.Workers'remittancesareasignificantpartofinternationalcapitalflows,especiallywithregardtolabor-exportingcountries.[1][2] AccordingtotheWorldBank,in2018overallglobalremittancegrew10%toUS$689billion,includingUS$528billiontodevelopingcountries.[3]Overallglobalremittanceisexpectedtogrow3.7%toUS$715billionin2019,includingUS$549billiontodevelopingnations.[3] Duetoitslargediasporaandoverseasexpatspopulation,Indiaconsecutivelyremainsthetopreceiverofremittance,e.g.withUS$80billionin2018,[3]US$65.3billion(2.7%ofIndia'sGDP)in2017,[3]US$62.7billionin2016[3]andUS$70billionin2014.[4]Othertoprecipientsin2020wereUS$67billiontoChina,US$34billioneachtoPhilippinesandMexicoandUS$26billiontoEgypt.[3] InternationalmoneytransferadinLondon,withtextsinPolishandRussian. Contents 1Globalextent 1.1Toprecipientcountries 1.2Majoroperators 2Byregion 2.1Asia 2.1.1Bangladesh 2.1.2India 2.1.3Jordan 2.1.4Philippines 2.2LatinAmericaandtheCaribbean 2.3NorthAmerica 2.3.1UnitedStates 2.4Africa 2.4.1Nigeria 2.4.2Somalia 2.5Caucasus 2.5.1Armenia 3History 4Dynamics 4.1Emergencies 4.2Potentialsecurityconcerns 4.3Economicbenefitsfordevelopingcountries 5Seealso 6References Globalextent[edit] Remittancesareplayinganincreasinglylargeroleintheeconomiesofmanycountries.Theycontributetoeconomicgrowthandtothelivelihoodsofthosecountries.AccordingtoWorldBankestimates,remittanceswilltotalUS$573billionin2019,ofwhichUS$422billion[5]wenttodevelopingcountriesthatinvolved250millionmigrantworkers.[6]Forsomeindividualrecipientcountries,remittancescanbeashighasathirdoftheirGDP.[6] Internationalremittanceshaveamajorimpactonthedevelopingeconomiesoftheworldwiththemajorityofremittances,$441billionin2015,goingtodevelopingnations.Thisamountisnearlytriplethe$131billionofglobalOfficialDevelopmentAssistance.[7]Formanydevelopingnations,remittancesreceivedmakeupasignificantportionoftheireconomies,evenreceivingover10%oftheirGDPinremittanceseachyear.[7] Toprecipientcountries[edit] Toprecipientcountriesofremittances(inbillionsofUSdollars)[8][9][10] Country 2012 2013 2014 2015 2016 2017 2018 2019 2020[11] 2021[12]  India 68.82 69.97 70.97 72.20 62.7 69.0 78.6 84.2 83.1 87  China 57.99 59.49 61.49 63.90 61.0 64 67.4 70.3 59.5 53  Mexico 23.37 23.02 24.50 25.70 28.5 31.0 35.7 38.7 42.8 53  Philippines 24.61 26.70 27.90 29.80 29.9 33.0 33.8 35.1 34.9 36  Egypt 19.24 17.83 19.83 20.40 16.6 20.0 28.9 26.4 29.6 33.3  Nigeria 20.63 20.89 20.88 20.89 19.0 22.0 24.3 25.4 17.0 18  Pakistan 14.01 14.63 17.80 20.10 19.8 20.0 21.0 21.9 26.1 33  Bangladesh 14.24 13.86 15.10 15.80 13.7 13 15.5 17.5 21.7 23  Vietnam 10.00 11.00 11.80 12.30 13.4 14.0 15.9 16.7 17.0 18    Nepal 5.9 6.01 5.29 5.8 6.40 6.68 8.1 5.19 8.1 8.5 Note:Thecountriesmentionedbelowarethelargest15recipientcountriesofremittancesonlyfortheyear2013.WorldBankdataisusedforallcountriesandyears. AsashareofGDP,thetoprecipientsofremittancesin2013wereTimor-Leste(16.6%),Tajikistan(42.1%),Kyrgyzstan(31.5%),Nepal(28.8%),Moldova(24.9%),Lesotho(24.4%),Samoa(23.8%),Haiti(21.1%),Armenia(21.0%),TheGambia(19.8%),Liberia(18.5%),Lebanon(17.0%),Honduras(16.9%),ElSalvador(16.4%),Kosovo(16.1%),Jamaica(15.0%)andBosniaandHerzegovina(8.82%,whichis1.540billion$for2017on31December2017conversionratebetween€andUS$).[8][13] Majoroperators[edit] TheremittanceindustryhasmostlybeendominatedbycompaniesheadquarteredinEuropeanfinancialcentersandtheAmericanWest,withWesternUnionhavingthelargestmarketshareasof2019.OthercompaniessuchasMoneyGramhavealsobeenakeyplayerfordecades.Mostcompaniesintheindustryarepureplaymoneytransferproviders,althoughtheymaybeownedbyparentcompanieswithmorediverseinterests. Eachofthesecompaniesfocusondifferentconsumerbases.Wisehasbeenthefastest-growingmoneytransferstartupintermsoftotalannualvolumetransferred,andfocusesontransferringfundsbetweenbankaccounts,oftenbetweendevelopedcountries.RiaMoneyTransferhashadanestablishedpresenceamongSpanishspeakersinNorthAmericaandSpain.WorldRemithasahighershareofAfricanmigrantslocatedworldwide,whileAzimofocusesspecificallyontheEuropeanmarketwithanemphasisonmigrantcommunities.CompaniessuchasWorldRemit,Remitly,andAzimohavesmalleraveragetransferamountsduetothehighershareofworking-classmigrantsusingtheirservices. Althoughtheremittancemarketsharehasdiversifiedsincetheadventofmoneytransfer"fintech"(financialtechnologystartups)duringthe2010s,WesternUnioncontinuestodominatethemajorityoftheremittancemarketshare.Sincetheadventoffintech,manydigitalremittanceshaveemergedonthescene,leadingtotheriseofcomparisonplatformsoraggregatorssuchasFXcomparedandMonitoinEuropeandSend4xinSoutheastAsia.[14][15] Also,blockchain-basedremittancescompaniesarealsostartingtobeusedandoffersuchadvantagesasfasttransfertimeandrelativelylowtransactioncosts.Somenotableblockchain-basedremittancescompaniesinclude:[16] Flutterwave Stellar Abra Thereisalsoarelevantinitiative,launchedbytheBillandMelindaGatesFoundationin2017,calledMojaloop.Itisdesigned(incooperationwithRipple,Dwolla,ModusBox,CrosslakeTechnologiesandSoftwareGroup)todeliverfinancialsupporttopeoplelivinginareasunderservedbybanks.[16] Byregion[edit] TheUShasbeentheleadingsourceofremittancesgloballyeveryyearsince1983.Russia,SaudiArabia,andSwitzerlandhavebeenthenextlargestsendersofremittancessince2007.[8]Between9millionand11millionworkerssendremittancesfromRussiaeachyear.[17] Asia[edit] AmajorityoftheremittanceshavebeendirectedtoAsiancountrieslikeIndia(approx.US$83.0billionin2020),China(approx.US$60.0billionin2021),thePhilippines(approx.US$33.5billionin2020),Pakistan(US$26.0billionin2020),Bangladesh(US$21.5billionin2020)andmore.[18]AsiancountriessuchasTajikistanandNepalareamongthecountriesthatrelythemostonremittances,accountingfor35%and25%oftheirGDPrespectively.[19] Mostoftheremittanceshappenbytheconventionalchannelofagents,likeWesternUnion,RiaMoneyTransfer,MoneyGram,UAEExchange,andsimilar.However,withtheincreasingrelevanceandreachoftheInternet,onlineandmobilephonemoneytransfershavegrownsignificantly.[20] Bangladesh[edit] Mainarticle:RemittancestoBangladesh Seealso:Bangladeshidiaspora Anestimated10millionBangladeshis,workingabroadhavesent$15billiontohomein2018and$18.32billionin2019.[21]Itiscountry'ssecond-largestsourceofforeignearningsafteritsgigantictextileindustry.Bangladeshisoneofthetop10countriesintheworldformigrationandremittanceaccordingtoWorldBank.Mostoftheremittancescomefromgulfcountries. India[edit] MedievalHundiisIndian-originremittancesystem.AhundiforRs2500of1951stampedintheBombayProvincewithapre-printedrevenuestamp. Mainarticle:RemittancestoIndia Seealso:Indiandiaspora,Indianisation,GreaterIndia,andIndosphere Indiaistheworld'stopreceiverofremittances,claimingmorethan12%oftheworld'sremittancesin2015.[22][23]Indianslivingoverseasaretheworld'slargestdiaspora.AspertheMinistryofOverseasIndianAffairs(MOIA),remittanceisreceivedfromtheapproximately35millionmembersoftheIndiandiaspora.[24]RemittancestoIndiastoodatUS$68.968billionin2017andremittancesfromIndiatoothercountriestotalledUS$5.710billion,foranetinflowofUS$63.258billionin2017.[25][26][27] Jordan[edit] TheflowofremittancestoJordanexperiencedrapidgrowthduringthe1970sand1980swhenJordanstartedexportingskilledlabortothePersianGulf.Theseremittancesrepresentanimportantsourceoffundingformanydevelopingcountries,includingJordan.[28]AccordingtotheWorldBankdataonremittances,withaboutUS$3billionin2010Jordanrankedat10thplaceamongalldevelopingcountries.Jordanrankedamongthetop20recipientsofremittancesfortheprecedingdecade.Inaddition,theArabMonetaryFund(AMF)statisticsin2010indicatethatJordanwasthethirdbiggestrecipientofremittancesamongArabcountriesafterEgyptandLebanon.ThehostcountriesthathaveabsorbedmostoftheJordanianexpatriatesareSaudiArabiaandtheUnitedArabEmirates,wheretheavailabledataindicatethatabout90%ofJordanianmigrantsareworkinginthePersianGulf.[29] Philippines[edit] PawnshopsareacommonplacetosendandreceiveremittanceinthePhilippines. AccordingtoaWorldBankStudy,[30]thePhilippinesisthesecondlargestrecipientforremittancesinAsia.Itwasestimatedin1994thatmigrantssentoverUS$2.6billionbacktothePhilippinesthroughformalbankingsystems.Withtheadditionofmoneysentthroughprivatefinancecompaniesandreturnmigrants,the1994totalwasclosertoUS$6billionannually.[31] Thetotalisestimatedtohavegrownby7.8percentannuallytoreachUS$21.3billionin2010.RemittancesareareliablesourceofrevenueforthePhilippines,accountingfor8.9percentofthecountry'sGDP.[32] TheEstradaadministrationin2000declaredit"TheYearofOverseasFilipinoWorkerintheRecognitionoftheDeterminationandSupremeSelf-SacrificeofOverseasFilipinoWorkers."Thisdeclarationconnectsmonetaryremittancesofoverseasworkersasthetopforeign-exchangeearningsinthePhilippines.[31] LatinAmericaandtheCaribbean[edit] InLatinAmericaandtheCaribbean,remittancesplayanimportantroleintheeconomyoftheregion,totalingoverUS$66.5billionin2007,withabout75%originatingintheUnitedStates.ThistotalrepresentsmorethanthesumofForeigndirectinvestmentandofficialdevelopmentaidcombined.InsevenLatinAmericanandCaribbeancountries,remittancesevenaccountformorethan10%ofGDPandexceedthedollarflowsofthelargestexportproductinalmosteverycountryintheregion.[33] Percentagesrangedfrom2%inMexico,to18%inElSalvador,21%inHonduras,andupto30%inHaiti.[34]TheInterAmericanDevelopmentBank'sMultilateralInvestmentFund(IDB-MIF)hasbeentheleadingagencyonregionalremittanceresearch.[33] MexicoreceivedremittanceinflowsofalmostUS$24billionin2007,95%ofwhichoriginatedintheUS. NorthAmerica[edit] UnitedStates[edit] Mainarticle:RemittancesfromtheUnitedStates A2004studyfoundthatover60%ofthe16.5millionLatinAmerican-bornadultswhoresidedintheUnitedStatesatthetimeofthesurveyregularlysentmoneyhome.Theremittancessentbythese10millionimmigrantsweretransmittedviamorethan100millionindividualtransactionsperyearandamountedtoanestimated$30billionduring2004.Eachtransactionaveragedabout$150–$250,and,becausethesemigrantstendedtosendsmalleramountsmorefrequentlythanothers,theirremittanceshadahigherpercentageofcostsduetotransferfees.[35] Migrantssentapproximately10%oftheirhouseholdincomes;theseremittancesmadeupacorresponding50–80%ofthehouseholdincomesfortherecipients.Significantamountsofremittancesweresentfrom37U.S.states,butsixstateswereidentifiedasthe"traditionalsending"states:NewYork(whichledthegroupwith81%ofitsimmigrantsmakingregularremittances),California,Texas,Florida,Illinois,andNewJersey.ThehighgrowthrateofremittancestoMexico(notthetotalamount)isunlikelytocontinue.Infact,accordingtotheMexicancentralbank,remittancesgrewjust0.6duringthefirstsixmonthsof2007,ascomparedto23%duringthesameperiodin2006.ExpertsattributetheslowdowntoacontractionintheU.S.constructionindustry,tighterbordercontrols,andacrackdownintheU.S.onillegalimmigration.[30] RemittancecultureintheUnitedStateshascontributedtotheformationof"micro-geographies",tightlyknitnetworksthatintegrateU.S.communitieswithcommunitiesthroughoutLatinAmerica,suchasmigrantsfromOaxaca,Mexico,whohavesettledinVeniceBeach,California.Oaxacansnotonlysendmoneybacktotheircommunities,buttheyalsotravelbackandforthextensively.[30] Asofrecently,remittancesfromtheUnitedStatestoLatinAmericahavebeenonthedecline.WhiletherewereUS$69.2billionworthofremittancessentin2008,thatfigurehasfallento$58.9billionfor2011.Thistrendisaresultofmanyfactorsincludingtheglobalrecession,moreeconomicopportunityinLatinAmericancountries,andrisingfeeschargedbycoyotestosmuggleimmigrantsacrosstheborder.[36] Thepatternofmigrationhaschangedfromacircularflow,inwhichimmigrantsworkintheUnitedStatesforafewyearsbeforereturningtotheirfamiliesintheirhomecountries,toaone-waystreamwherebymigrantsfindthemselvesstuckintheUnitedStates.Asaresult,thenewwaveofmigrantsisbothlesslikelytoleaveandmorelikelytostayintheUnitedStatesforlongerperiodsoftime.Overall,thistrendhascontributedtofallinglevelsofremittancessenttoLatinAmericancountriesfromtheUnitedStates.[36] Africa[edit] RemittancestoAfricaplayanimportantroleinnationaleconomies.However,littledataexistsasmanyrelyoninformalchannelstosendmoneyhome.ImmigrantsfromAfricatodaynumberapproximately20to30millionadults,whosendaroundUS$40billionannuallytotheirfamiliesandlocalcommunitiesbackhome.Fortheregionasawhole,thisrepresents50percentmorethannetofficialdevelopmentassistance(ODA)fromallsources,and,formostcountries,theamountalsoexceedsforeigndirectinvestment(FDI).Inseveralfragilestates,remittancesareestimatedtoexceed50percentofGDP.[37] MostAfricancountriesrestrictthepaymentofremittancestobanks,whichinturn,typicallyenterintoexclusivearrangementswithlargemoneytransfercompanies,likeWesternUnionorMoneyGram,tooperateontheirbehalf.Thisresultsinlimitedcompetitionandlimitedaccessforconsumers,whichallowstheseMoneyTransferOperators(MTOs)tochargethehighestfeesforremittancesintheworld.[38]However,thereareanumberofnewplayersaimingtodisruptthisestablishedMTOmodel,suchasXoomandWillstream,whichleverageincreasingmobilephonepenetrationintheregionandprovidedifferentratestructurestoDiasporacustomers.[39][40]Additionally,globalinitiativeliketheUnitedNationsSustainableDevelopmentGoal10hasatargetofreducingthetransactioncostsofmigrantremittancestolessthan3percentby2030.[41] AccordingtoaWorldBankstudy,[30]NigeriaisbyfarthetopremittancerecipientinAfrica,accountingfor$10billionin2010,aslightincreaseoverthepreviousyear($9.6billion).OthertoprecipientsincludeSudan($3.2billion),Kenya($1.8billion),Senegal($1.2billion),SouthAfrica($1.0billion),Uganda($0.8billion),Lesotho($0.5billion),Ethiopia($387million),Mali($385million),andTogo($302million).AsashareofGrossDomesticProduct,thetoprecipientsin2009were:Lesotho(25%),Togo(10%),CapeVerde(9%),Guinea-Bissau(9%),Senegal(9%),Gambia(8%),Liberia(6%),Sudan(6%),Nigeria(6%),andKenya(5%).[42] Nigeria[edit] Amajorsourceofforeign-exchangeearningsforNigeriaareremittancessenthomebyNigerianslivingabroad.[43]In2014,17.5millionNigerianslivedinforeigncountries,withtheUKandtheUShavingmorethan2millionNigerianseach.[43] AccordingtotheInternationalOrganizationforMigration,NigeriawitnessedadramaticincreaseinremittancessenthomefromoverseasNigerians,goingfromUS$2.3billionin2004to17.9billionin2007,representing6.7%ofGDP.In2016,remittancesreachedanewrecordof$35billion.[44]TheUnitedStatesaccountsforthelargestportionofofficialremittances,followedbytheUnitedKingdom,Italy,Canada,SpainandFrance.OntheAfricancontinent,Egypt,EquatorialGuinea,Chad,Libya,andSouthAfricaareimportantsourcecountriesofremittanceflowstoNigeria,whileChinaisthebiggestremittance-sendingcountryinAsia. AnAugust2016NigerianCentralBank(NCB)decisiontosuspendtheoperationsofallMTOsinthecountry,exceptthoseofWesternUnion,MoneyGramandRio,[45]wasmetwithastrongbacklash.[46]Itwasarguedthatthedecisionwasnotappropriatelyjustified,whilealsostandingincontrasttotheNCB'spreviousmovetobanallexclusivityagreementswithWesternUnion.[47]ThedecisionwasconsideredtodisproportionallystrengthenthedominantpositionofWesternUnion,MoneyGramandRio.[48]Underpressure,however,theCentralBankreversedthedecisionandgrantednewlicensestoanumberofcompetingMTOs.[49] Somalia[edit] SomaliexpatriatesoftensendremittancestotheirrelativesinGreaterSomaliathroughDahabshiilandotherSomali-ownedmoneytransfercompanies.InordertoensurethatthesefundsgototheirintendedrecipientsratherthanAl-Shabaabandothermilitantgroups,thegovernmentsoftheUnitedStates,Australia,andanumberofotherWesterncountriestightenedtheirbankingrequirementsorstoppedprocessingaltogethertheremittances.[50][51]Toaddresstheconcerns,theUnitedStatesCongresspassedtheMoneyRemittancesImprovementActof2014.[50] InApril2015,theFederalCabinetofSomaliaalsoofficiallylaunchedtheSpecialTaskForceonRemittances(STFR).Themulti-agencyinitiativeismandatedwithfacilitatingtheFederalGovernmentofSomalia'snewnationalpolicypertainingtothemoneytransferindustry.Itsmainpriorityiscenteredonestablishingacomprehensivestrategyandaconsultativeimplementationplanfortheformalizationofthelocalfinancialsector.Additionally,theSTFRistaskedwithhelpingtofosterabusinessenvironmentandfinancialinfrastructureconducivetogrowth.Itisalsoempoweredtocoordinateandspeeduptheendorsementoffinancialgovernanceinstrumentsandtransparencyassociatedlegislation,suchasthelawsonAnti-MoneyLaundering(AML)andCounterFinancingofTerrorism(CFT).InaccordancewiththeFinancialActionTaskForce(FATF)'srecommendations,theSTFRisinturnslatedtooverseetheSomalifederalgovernment'scampaigntoratifyvariousinternationaltreaties.TheTaskForces'membershipisscheduledtobeannouncedshortly,andwillbedrawnfromgovernmentinstitutions,theremittanceindustry,banks,andotherkeyprivatesectorstakeholders.[52] Caucasus[edit] Armenia[edit] RemittancesareamajorcomponentoftheArmenianeconomy.TheymakeupsuchalargeportionofArmenia’sGDP—13%in2011.In2013around40%offamiliesofArmeniahavereceivedremittances.Asaresult,Armeniafallsinthetop20countriesworldwideforreceivingremittances.[53]TotalremittancestoArmeniahavereachedtheirpeakin2013beingequalto$2.192billionbutplummetedafterthe2014Russianrubledevaluationandreached$1.528billionin2019.[54] Accordingtothesurvey,Atotalof82%of2007migrantsreportedsendinghomeremittancesduringthe2006year,and95%ofthosesendremittancestoonlyonehousehold.Onaverage,theysend$270(firsttrip)and$345(lasttrip),andtheaveragefrequencyofsendingremittancesisevery4–6months.Ontopoftheseremittances,thesavingsbroughthomeeachyearaveragedbetweenUS$1,920(firsttrip)and$2,800(lasttrip).[55] In2018,remittancestoArmeniaamountedto$1.45billion,taking12%ofGDP.[56]ThebigamountisconnectedtoalargeArmeniandiasporaspreadallaroundtheworld:thetotalpopulationisestimatedtobe11millionofwhichonly3millionArmeniansliveinArmenia. In2017,RussiahadthelargestremittanceflowstoArmenia,around60.5%ofoverallremittances.Thefigureamountedtonearly$945millionduetomorethan2millionArmenianpopulationlivinginRussia.ThenextbiggestinflowswererecordedfromtheUS,over$160million,10.25%oftheoverallfigure(around500,000-1,000,000Armenianpopulation).ThelistisfollowedbyKazakhstanremitting$45million,Germanywith$35.106millionandothercountriessuchasUAE,France,Spainaveragingto1.2%oftotaleach.[57][58] AccordingtotheIMF,startingfrom2010remittancesinUSD,AMD(Armeniandram),andRubles,grewuntiltheyhittheirpeakin2014andstarteddecliningafterthatinavolatilefashionasaresultoftheRussianrubledevaluation.RemittancesinAMDandUSDdeclinedtoalmosttheir2010levels.[59] History[edit] Remittancesarenotanewphenomenonintheworld,beinganormalconcomitantofmigrationwhichhasalwaysbeenapartofhumanhistory.SeveralEuropeancountries,forexampleSpain,ItalyandIrelandwereheavilydependentonremittancesreceivedfromtheiremigrantsduringthe19thand20thcenturies.InthecaseofSpain,remittancesamountedto21%ofallofitscurrentaccountincomein1946.[60] Allofthosecountriescreatedpoliciesonremittancesdevelopedaftersignificantresearcheffortsinthefield.Forinstance,Italywasthefirstcountryintheworldtoenactalawtoprotectremittancesin1901[61]whileSpainwasthefirstcountrytosignaninternationaltreaty(withArgentinain1960)tolowerthecostoftheremittancesreceived.[citationneeded] Since2000,remittanceshaveincreasedsharplyworldwide,havingalmosttripledto$529billionin2012.In2012,migrantsfromIndiaandChinaalonesentmorethan$130billiontotheirhomecountries.[62] In2004theG8metattheSeaIslandSummitanddecidedtotakeactiontolowerthecostsformigrantworkerswhosendmoneybacktotheirfriendsandfamiliesintheircountryoforigin.Inlightofthis,variousG8governmentdevelopmentalorganizations,suchastheUKgovernment'sDepartmentforInternationalDevelopment(DFID)andUSAIDbegantolookintowaysinwhichthecostofremittingmoneycouldbelowered. InSeptember2008,theWorldBankestablishedthefirstinternationaldatabaseofremittanceprices.TheRemittancePricesWorldwideDatabase[63]providesdataonsendingandreceivingremittancesforover200"countrycorridors"worldwide.The"corridors"examinedincluderemittanceflowsfrom32majorsendingcountriesto89receivingcountries,whichaccountformorethan60%oftotalremittancestodevelopingcountries.[64]TheresultingpublicationoftheRemittancePricesWorldwideDatabaseservesfourmajorpurposes:benchmarkingimprovements,allowingcomparisonsacrosscountries,supportingconsumers’choices,andputtingpressureonserviceproviderstoimprovetheirservices.[64] AttheJuly2009summitinL'Aquila,Italy,G8headsofgovernmentandstatesendorsedtheobjectiveofreducingthecostofremittanceservicesbyfivepercentagepointsinfiveyears.Todrivedowncosts,theWorldBankhasbeguncertifyingregionalandnationaldatabasesthatuseaconsistentmethodologytocomparethecostofsendingremittances.[65] AttheG202011SummitinCannes,BillGatesstatedthat,"Ifthetransactioncostsonremittancesworldwidewerecutfromwheretheyaretodayataround10%toanaverageof5%…itwouldunlock$15bnayearinpoorcountries."[66]Anumberoflow-costonlineserviceshaveemergedwiththeobjectiveofloweringthecostofmoneytransferstodevelopingandemergingeconomies.Therearealsoanumberofcomparisonsiteswhenitcomestoremittancewhichbreaksdownthecostsofsendingmoneyoverseas.[67]TheWorldBankstatedthatremittancetolow-andmiddle-incomecountriesreached$529billionin2018,whichwasarecordhigh.[68] Dynamics[edit] Emergencies[edit] Duringdisastersoremergencies,remittancescanbeavitalsourceofincomeforpeoplewhoseotherformsoflivelihoodmayhavebeendestroyedbyconflictornaturaldisaster.AccordingtotheOverseasDevelopmentInstitute,thisisbeingincreasinglyrecognizedasimportantbyaidactorswhoareconsideringbetterwaysofsupportingpeopleinemergencyresponses.[69]AnillustrativeexamplecanbeArmenia,thathadexperiencedadevastatingearthquakeinSpitakonDecember7,1988,whentheKarabakhconflicthadalreadystarted.About45,000peoplehavedied,while500,000becamehomeless.Armeniagothelpfromdifferentcountries,forexample,theU.S.governmentimmediatelysent$10million,whichhelpedtomoreorlessrecovertheeconomy.[70]Refugeesandotherdisplacedpopulationsalsooftenremittofamilymembersleftbehindinconflictareas.[71] Potentialsecurityconcerns[edit] Therecentinternationallycoordinatedefforttostiflepossiblesourcesofmoneylaunderingand/orterroristfinancinghasincreasedthecostofsendingremittances,directlyincreasingcoststothecompaniesfacilitatingthesending,andindirectlyincreasingthecoststothepersonremitting.Asinsomecorridorsasizableamountofremittancesissentthroughinformalchannels(familyconnections,travelingfriends,localmoneylenders,etc.).AccordingtotheWorldBank,[72]somecountriesdonotreportremittancesdata. Moreover,whendataisavailable,themethodologiesusedbycountriesforremittancedatacompilationarenotpubliclyavailable.A2010worldsurveyofcentralbanksfoundsignificantdifferencesinthequalityofremittancedatacollectionacrosscountries:somecentralbanksonlyusedremittancesdatareportedfromcommercialbanks,neglectingtoaccountforremittanceflowsviamoneytransferoperatorsandpostoffices.[73] Remittancescanbedifficulttotrackandpotentiallysensitivetomoneylaundering(AML)andterrorfinancing(CTF)concerns.Since9/11manygovernmentsandtheFinancialActionTaskForce(FATF)havetakenstepstoaddressinformalvaluetransfersystems.Thisisdonethroughnations'FinancialIntelligenceUnits(FIUs).TheprinciplelegislativeinitiativesinthisareaaretheUSAPATRIOTAct,TitleIIIintheUnitedStatesand,intheEU,throughaseriesofEUMoneyLaunderingDirectives.Thoughnoseriousterrorriskshouldbeassociatedwithmigrantssendingmoneytotheirfamilies,misuseofthefinancialsystemremainsaseriousgovernmentconcern. Economicbenefitsfordevelopingcountries[edit] Theextenttowhichremittancesproducebenefitsfordevelopingcountriesisargued.[74] WorldBankeconomistscontendthatremittancereceivers'higherpropensitytoownabankaccountmeansthatremittancescanpromoteaccesstofinancialservicesforthesenderandrecipient,claimedtobeanessentialaspectofleveragingremittancestopromoteeconomicdevelopment.[30]Forexample,inArmenia,whichhasoneofthehighestremittancetoGDPratios,[8]studiessuggestthatthosehouseholdswhichreceiveremittanceshaveahigherpropensitytosave,however,asopposedtosometheoreticframeworks,thesesavingsarenotusedtoleverageborrowingmorefromthefinancialsystemasawaytogrowtheirbusinesses.[75]Otherstudiessuggestthatanotherchannelthroughwhichremittancescanfostereconomicgrowthisahouseholdinvestment.Forinstance,thestudyconductedinSouthCaucasusrevealsthatinArmeniahavingamigranthouseholdmemberisassociatedwithahigherprobabilityofestablishingafamilybusinessbythathousehold.Thus,theremittancessentbymigrantscanpotentiallyencouragedomesticinvestment,ensuringeconomicgrowth.[76]However,newfindingsforArmeniasuggestthatremittanceshelppotentialmigrantstoeasethemigrationprocess,servingasaresourceratherthanasacontractualtoolbetweenmigrantsandnon-migrants.Itisconcludedthatremittancesdrasticallyshiftemigrationintentionsupward.Theneedforremittances,andtheabilityandthestrengthofthemigrantsocialcapital(orthenetwork)arefactorswhichjointlydetermineemigrationintentions.[77]Meanwhile,criticalmigrationscholarshaveexpressedconcernabouttheabilityofremittancestoaddressthestructuralcausesofeconomicunderdevelopment[78][79]andseeanincreasingpolicyemphasisonfinanceassymptomaticofaparadigmaticshifttowardsa'self-helpdevelopment'thatburdensthepoor.[80] Remittancesaregenerallythoughttobecounter-cyclical.Thestabilityofremittanceflowsamidstfinancialcrisesandeconomicdownturnsmakethemareliablesourceofforeignexchangeearningsfordevelopingcountries.[30]Asmigrantremittancesaresentcumulativelyovertheyearsandnotonlybynewmigrants,remittancesareabletobepersistentovertime.Thisisparticularlytrueofremittancessentbycircularmigrants,migrantworkerswhomovebackandforthbetweentheirhomeandhostcountriesinatemporaryandrepetitivemanner.Atthestatelevel,countrieswithdiversifiedmigrationdestinationsarelikelytohavemoresustainableremittanceflows.[30] Fromamacroeconomicperspective,thereisnoconclusiverelationshipbetweenremittancesandGDPgrowth.[81]Whileremittancescanboostaggregatedemandandtherebyspureconomicactivity,otherresearchindicatesthatremittancesmayalsohaveadversemacroeconomicimpactsbyincreasingincomeinequalityandreducinglaboursupplyamongrecipientcountries.[82] TheWorldBankandtheBankforInternationalSettlementshavedevelopedinternationalstandardsforremittanceservices.[83] Seealso[edit] Hawala Moneyservicesbusiness Moneytransmitter Blacktax References[edit] ^Al-Assaf,GhaziandAl-Malki,AbdullahM.,(2014),ModellingtheMacroeconomicDeterminantsofWorkers’Remittances:TheCaseofJordan,InternationalJournalofEconomicsandFinancialIssues,Vol.4,issue3,p.514-526. ^"BalanceofPaymentsandInternationalInvestmentPositionManual(BPM6)"(PDF).InternationalMonetaryFund.p. 272.Retrieved2021-04-10.{{citeweb}}:CS1maint:url-status(link) ^abcdefIndiatoretaintoppositioninremittanceswith$80billion:WorldBank,EconomicTimes,9Dec2018. ^CapitalMarket(14April2015)."IndiareceivestopremittanceofUS$70billionin2014:WorldBank".BusinessStandardIndia.Retrieved16June2015. ^"MigrationandRemittances:RecentDevelopmentsandOutlook"(PDF).WorldBank.April2018.Retrieved5February2021.{{citeweb}}:CS1maint:url-status(link) ^ab"RemittancestoDevelopingCountriesExpectedtoGrowatWeakPacein2016andBeyond".worldbank.org.6October2016.Retrieved31October2016. ^ab"UnderstandingtheImportanceofRemittances".migrationpolicy.org.2004-10-01.Retrieved2017-05-03. ^abcd"Prospects-Migration&RemittancesData".Retrieved1April2018. ^"RemittancesData"(PDF).Retrieved12Jan2016. ^"COVID-19:RemittanceFlowstoShrink14%by2021Data".Retrieved12Feb2021. ^"MigrationandDevelopmentBrief34|KNOMAD".www.knomad.org.Retrieved2021-06-01. ^"MigrationandDevelopmentBrief35|KNOMAD".www.knomad.org.Retrieved2021-12-07. ^"Doznakeizinostranstvaprošlegodine2,51mlrdKM".Indikator.ba.Retrieved19April2018. ^"Singapore-BasedFintechLaunchesRemittanceComparisonSite".finews.asia.Retrieved2019-12-24. ^"WhyBanksMayNotBetheBestPlacetoConvertCurrency".WallStreetJournal.2018-08-05.Retrieved2020-01-07. ^abHowBlockchain-basedtechnologyisdisruptingmigrants'remittances:apreliminaryassessment ^Astrasheuskaya,Nastassia(2021-04-19)."RemittanceshelpcushioncentralAsiafrompandemichit".FinancialTimes.Retrieved2021-07-20.{{citeweb}}:CS1maint:url-status(link) ^"Infographic:TheWorld'sTopRemittanceRecipients".StatistaInfographics. ^"TheImpactofCOVID-19onRemittanceFlows-IMFF&D".www.imf.org.Retrieved2021-07-20. ^Procee,Paul(5May2013)."MIGRATIONANDREMITTANCES2016"(PDF).worldbank.org:1–9. ^"Remittancehitsrecord$18.32bin2019".NewAge. ^"InternationalMigrationatAll-TimeHigh".TheWorldBank.18December2015.Retrieved27May2016. ^"Pakistan4thlargestsourceofremittancestoIndia".TheBusinessStandard.24December2015.Retrieved27May2016. ^"RemittancesfromIndiandiasporaontherise".TheEconomicTimes.Feb19,2014.Retrieved2014-02-23. ^"Remittanceflowsbycountry2017".PewResearchCenter.Retrieved7April2019. ^"RemittancesfromIndiansabroadpushIndiatothetop".www.nrirealtynews.com.2007-10-22.Retrieved2009-03-14. ^Gupta,Poonam(2005-12-01).MacroeconomicDeterminantsofRemittances:EvidencefromIndia.InternationalMonetaryFund.ISBN 9781451862430.Retrieved2009-03-14. ^Al-Assaf,G.(2012),Workers'RemittancesinJordan,LAMBERTAcademicPublishing,Germany. ^Al-Assaf,G.andAl-Malki,A.,(2014),ModellingtheMacroeconomicDeterminantsofWorkers’Remittances:TheCaseofJordan,InternationalJournalofEconomicsandFinancialIssues,Vol.4,issue3,p.514-526. ^abcdefg"WorldBank-MigrationandDevelopmentBrief13"(PDF). ^abPratt,Geraldine.WorkingFeminism.p. 40. ^Huang;Yeoh;Rahman."CaringfortheWorld:FilipinoDomesticWorkersGoneGlobal".AsianWomenasTransnationalDomesticWorkers.AnnalsoftheAssociationofAmericanGeographers(Maruja ed.).pp. 21–53. ^ab"IADB.org-Pagenotfound(HTTP404)".{{citeweb}}:Citeusesgenerictitle(help) ^Hawley,Chris(July10,2009)."WithUSAinarecession,ruralMexicofeelsthepain".USAToday.RetrievedOctober12,2009. ^E.Carrasco&J.Ro(2007)."RemittancesandDevelopment"(ebook).UniversityofIowaCenterforInternationalFinanceandDevelopment. ^abFaure,Léa(19February2019)."LGnecomptepasinvestirdanslestéléphonespliables-ITSocial|MédiadesEnjeuxIT&Business,InnovationetLeadership". ^"Remittances".Retrieved16June2015. ^Anderson,Mark(2014-08-18)."Globalremittanceindustrychokingbillionsoutofdevelopingworld".TheGuardian.ISSN 0261-3077.Retrieved2017-08-17. ^"THEDIGITALREMITTANCEREPORT:Thenewplatformsdisruptinga$600billionindustry".BusinessInsiderFrance(inFrench).Retrieved2017-08-17. ^"InternationalRemittancesthroughBranchlessBanking"(PDF).UNConferenceonTradeandDevelopment. ^"Goal10targets".UNDP.Retrieved2020-09-23. ^"Sub-SaharanAfricapostsgrowthinremittances".Retrieved16June2015. ^ab"RemittancesfromdiasporaNigeriansaslubricantfortheeconomy".NigerianTribune.8September2014.ArchivedfromtheoriginalonMarch17,2015. ^Agabi,Chris(2016-12-21)."Nigeria:DiasporaRemittanceHitsU.S.$35Billionin2016".DailyTrust(Abuja).Retrieved2017-08-17. ^"BewareofUnregisteredMoneyTransferOperators"(PDF).CentralBankofNigeria. ^JacopoPrisco;HeatherLong(3August2016)."Nigeriaclampsdownonmoneytransfers".CNN.Retrieved2017-08-17. ^Allison,Ian(2016-08-02)."WorldRemitcallsforurgentrestorationofmoneytransferstoNigeria".InternationalBusinessTimesUK.Retrieved2017-08-17. ^"WeneedAfricancountriestosupportourliterature,says2017'sCaineprizewinner".Quartz.Retrieved2017-08-17. ^Kazeem,Yomi."Nigeria'sCentralBankisbacktrackingonplanstobanoperatorsdisruptingremittances".Quartz.Retrieved2017-08-17. ^ab"EllisonandPaulsenReintroduceMoneyRemittancesImprovementActToHelpSomaliFamiliesSendMoneyHome".HouseOfficeofKeithEllison.6May2014.Retrieved18April2015. ^Armitage,Laura(30March2015)."WestpactostopSomalimoneytransfersonMarch31".HeraldSun.Retrieved18April2015. ^"SomaliGovernmentEstablishesSpecialTaskForceonRemittances".Goobjoog.7April2015.Retrieved18April2015. ^Makaryan,Gagik;Galstyan,Mihran(2013)."CostsandBenefitsofLabourMobilitybetweentheEUandtheEasternPartnershipPartnerCountries-CountryReport:Armenia".SSRNElectronicJournal.doi:10.2139/ssrn.2323376.hdl:10419/128266.ISSN 1556-5068.S2CID 155502946. ^"Personalremittances-Armenia",worldbank.org ^"LaborMigrationinArmenianCommunities". ^"InflowofRemittancesbyBalanceofPayments",CentralBankofArmenia ^"OverseasIndividualRemittancestoArmenia", Hetq.am ^"Armenia-Migrantremittance",Countryeconomy.com ^"CaucasusandCentralAsiaRegionalEconomicOutlook". ^Remesas.org,Emigrantesconstruyendoescuelas:LaprimerapolíticaoficialdecodesarrolloArchived2016-04-04attheWaybackMachine ^"LaprimeraLeyderemesasdelahistoria"(PDF).remesas.org(inSpanish). ^"Theincredibleriseofmigrants'remittances".tageswoche.ch. ^"RemittancePricesWorldwide|MAKINGMARKETSMORETRANSPARENT".remittanceprices.worldbank.org. ^ab"PaymentSystems&Remittances". ^"NationalandRegionalDatabasesCertifiedbytheWorldBank".ArchivedfromtheoriginalonJuly23,2012. ^"G20Report".Archivedfromtheoriginalon2014-09-20. ^"Singapore-BasedFintechLaunchesRemittanceComparisonSite".finews.asia.2019-06-10.Retrieved2019-06-21. ^"RecordHighRemittancesSentGloballyin2018".WorldBank.Retrieved2019-06-21. ^"Remittancesduringcrises:implicationforhumanitarianresponse". ^America,ArmenianAssemblyof(December7,2018)."Rememberingthe1988EarthquakeinArmeniaandAmericanRelief".ArmenianAssemblyofAmerica. ^Vargas-Silva,C.(2018)."RemittancesSentToandFromtheForciblyDisplaced".TheJournalofDevelopmentStudies.53(11):1835–1848.doi:10.1080/00220388.2016.1234040.S2CID 157536037.{{citejournal}}:CS1maint:usesauthorsparameter(link) ^"MigrationandRemittancesFactbook2011".Retrieved16June2015. ^Irving,Mohapatra,Ratha."MigrantRemittanceFlows:FindingsfromaGlobalSurveyofCentralBanks".WorldBankWorkingPaperNo.194.WorldBank.RetrievedApril3,2011.{{citeweb}}:CS1maint:multiplenames:authorslist(link) ^deHaas,Hein(2012-06-01)."TheMigrationandDevelopmentPendulum:ACriticalViewonResearchandPolicy".InternationalMigration.50(3):8–25.doi:10.1111/j.1468-2435.2012.00755.x.ISSN 1468-2435. ^Grigorian,DavidA.;Melkonyan,TigranA.(February2011)."DestinedtoReceive:TheImpactofRemittancesonHouseholdDecisionsinArmenia:ImpactofRemittances".ReviewofDevelopmentEconomics.15(1):139–153.doi:10.1111/j.1467-9361.2010.00598.x.S2CID 153795970. ^Dermendzhieva,Zvezda(2011)."EmigrationfromtheSouthCaucasus:whogoesabroadandwhataretheeconomicimplications?".Post-CommunistEconomies.23(3):377–398.doi:10.1080/14631377.2011.595135.S2CID 154852713. ^Grigoryan,Aleksandr;Khachatryan,Knar(2018)."RemittancesandEmigrationIntentions:EvidencefromArmenia".CERGE-EIWorkingPaperSeries(626).doi:10.2139/ssrn.3259211.ISBN 978-80-7343-433-5.ISSN 1556-5068.S2CID 158935643.SSRN 3259211. ^Wise,Wise;Covarrubias,HumbertoMárquez(2009-12-01)."UnderstandingtheRelationshipbetweenMigrationandDevelopment:TowardaNewTheoreticalApproach".SocialAnalysis.53(3).doi:10.3167/sa.2009.530305.ISSN 1558-5727. ^Abreu,Alexandre(2012-04-01)."TheNewEconomicsofLaborMigration:BewareofNeoclassicalsBearingGifts".ForumforSocialEconomics.41(1):46–67.doi:10.1007/s12143-010-9077-2.ISSN 0736-0932.S2CID 144557933. ^Rankin,KatharineN.(2001-01-01)."Governingdevelopment:neoliberalism,microcredit,andrationaleconomicwoman".EconomyandSociety.30(1):18–37.CiteSeerX 10.1.1.202.6309.doi:10.1080/03085140020019070.ISSN 0308-5147.S2CID 15766343. ^Barajas,Adolfo;Chami,Ralph;Fullenkamp,Connel;Montiel,Peter(2009)."DoWorkers'RemittancesPromoteEconomicGrowth?".IMFWorkingPaperSeries. ^"FederalReserveBankofDallas,DoRemittancesBoostEconomicDevelopment?EvidenceFromMexicanStates,October2010"(PDF). ^"PaymentSystems".WorldBank. vteOnlineremittanceproviders Azimo CurrencyFair InstaReM MoneyGram OFX PayPal Remitly Rewire RiaMoneyTransfer Transfast TransferMate Travelex WesternUnion Wise WorldRemit XE Xoom Category Remittance AuthoritycontrolNationallibraries Spain France(data) Germany UnitedStates Other FacetedApplicationofSubjectTerminology Retrievedfrom"https://en.wikipedia.org/w/index.php?title=Remittance&oldid=1084253378" Categories:RemittancesInternationalfactormovementsHiddencategories:CS1maint:url-statusCS1errors:generictitleCS1French-languagesources(fr)WebarchivetemplatewaybacklinksCS1Spanish-languagesources(es)CS1maint:usesauthorsparameterCS1maint:multiplenames:authorslistArticleswithshortdescriptionShortdescriptionmatchesWikidataAllarticleswithunsourcedstatementsArticleswithunsourcedstatementsfromJuly2013ArticleswithBNEidentifiersArticleswithBNFidentifiersArticleswithGNDidentifiersArticleswithLCCNidentifiersArticleswithFASTidentifiers Navigationmenu Personaltools NotloggedinTalkContributionsCreateaccountLogin Namespaces ArticleTalk English Views ReadEditViewhistory More Search Navigation MainpageContentsCurrenteventsRandomarticleAboutWikipediaContactusDonate Contribute HelpLearntoeditCommunityportalRecentchangesUploadfile Tools WhatlinkshereRelatedchangesUploadfileSpecialpagesPermanentlinkPageinformationCitethispageWikidataitem Print/export DownloadasPDFPrintableversion Inotherprojects WikimediaCommons Languages العربيةবাংলাCatalàČeštinaDeutschEspañolEsperantoFrançais한국어हिन्दीBahasaIndonesiaItalianoҚазақшаLingálaमराठीनेपाली日本語NorskbokmålPortuguêsРусскийSvenskaTagalogTiếngViệt中文 Editlinks