Pardee-CFLP-Remittances-TF-Report

tory authorities, with some calls for the elimination of these channels. Sinceremittances are often the sole financial source that enables individuals affectedby conflict to rebuild homes and meet their consumption requirements, thereis a need for devising policies that would better regulate informal remittancechannels, while taking into account people with genuine needs who use thesesystems.Thus, more policy efforts need to be directed towards the reconstruction anddevelopment of the conflict-affected areas through direct collaborations with thediaspora to channel remittances into local development activities, and throughinfrastructural and rural development programs that include the direct participationof people living in these areas. Education policies, vocational trainingprograms, and public investment also need to be directed towards developingskills, well-paid jobs, infrastructural development, and towards diversifying andraising the competitiveness of merchandise exports, which would reduce thedependence on remittances and the exports of unskilled labor to meet externalfinancing needs.Given that informal channels are often the only affordable means for refugeemigrants to remit money, efforts need to be directed towards improving thetransparency of these informal remittance channels, rather than abolishingthem. One way of improving transparency could be to have rules requiringagents who transfer money through informal channels to be registered orlicensed, and rules that require informal money transfer systems to maintainrecords and details of their customers and transactions. However, since anonymityis one of the main appealing aspects of informal channels for poorermigrants, such policy effortsare likely to meet resistance.Addressing such resistancerequires greater dialogue withleaders of diaspora communitiesin order to achieve abetter understanding of theGiven that informal channels are often theonly affordable means for refugee migrantsto remit money, efforts need to be directedtowards improving the transparency ofthese informal remittance channels, ratherthan abolishing them.impacts of such policies and measures (Buencamino and Gorbunov 2002). Additionally,efforts should be directed towards more migrant-friendly policies andtowards making the remittance systems in the formal banking channel moreaccessible to poor households (Cheran and Aiken 2005).Remittance Flows to Post-Conflict States: Perspectives on Human Security and Development 69