Pardee-CFLP-Remittances-TF-Report

This is a breakthrough moment: after decades of work, finally mobile internettechnology has reached a critical point that has made this transnational coordinatedintervention possible. There are now significant opportunities for its scalabilityin multiple countries around the world and to ensure its financial viabilityboth for the technology providing company (since it must generate a rate ofreturn) and more importantly for the governments that are provided access tothis technology at no cost. And all the while this is being achieved through theability to provide financial services at lower costs, but in such a way that makesthis infrastructure easily available via cell phones and thus capable of reachingmassive scale.A Virtuous Cycle Moving Forward: Recognizing a new era inhuman development opportunitiesIn post-conflict environments, especially where the North and South are increasinglylinked through migration and remittances, the mobilization of just a fractionof the $400 billion in global remittance flows towards development goalsoffers serious potential for creating major development impacts across borders.This is particularly true in the case of El Salvador, where getting 10 percent ofremittance flows into saving instruments and leveraging investable funds withmicrofinance institutions (MFIs) in the migrant-sending areas is a goal that isrealistic and achievable thanks to the opportunities made possible by technology;achieving this goal would have a much more significant impact than currentU.S.-El Salvador development cooperation initiatives. 10In the post-post-conflict context, this case serves as an example of how newgovernment-diaspora cooperation has the potential to emerge from conflicts.In El Salvador, the construction of a viable financial and technological futurehas the potential to leverage the migration and remittance dynamic that wasthe result of significant conflict and suffering; ironically, the same dynamic cannow contribute to transforming the vicious cycle of exclusion and inequality intoa virtuous cycle of inclusion and development with great benefits for both thesending and receiving countries. In doing this, it will be especially important tostudy and identify opportunities for post-post-conflict transnational coordinateddevelopment policies, particularly in light of the increasing influence of the SalvadoranDiaspora in El Salvador and the growing role of Latinos in the U.S., andSalvadorans as a significant part of this population.10 Such investable funds would represent five times more per year than what the Millennium Challenge Corporationand Partnership for Growth are planning to provide over five years.Remittance Flows to Post-Conflict States: Perspectives on Human Security and Development 111