Pardee-CFLP-Remittances-TF-Report

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Remittance Transfers in Sierra Leone: The Predominance of InformalChannelsAccording to the United Nations Development Program, formal money transferoperators such as MoneyGram and Western Union account only for a smallshare of the remittance transfers into Sierra Leone. A small proportion ofremittances also are transferred by mobile phone credits. But the bulk ofremittance flows enters the economy through unofficial remittance agentsoperating in partnerships with small business owners and merchants in thelocal communities.The discrepancy between remittance figures reported by the InternationalMonetary Fund and the World Bank and the remittance estimates reportedby other entities such as the International Fund for Agricultural Developmentand the government of Sierra Leone highlights the extensive role of informalnetworks in remittance transfers. The high cost of transfers for use of formalremittance channels is one factor that hinders their use. The World Bankreports that the average cost of sending money to Africa in 2012 was 11.89percent, three percent higher than the global average cost for the same period.Additionally, the most expensive 10 corridors were all intra-African corridors.Commercial bank transfers accounted for the most expensive means for remittancetransfers.In 2009, one company began offering mobile money transfers in SierraLeone. The company operates across all mobile networks and aims to driveeconomic empowerment throughout the country by “banking the unbanked”and bringing more convenience to the banked population and businesses.The penetration rate of cellular mobile phones has seen a continuous risesince 2008—from 18 percent to 36 percent in 2011 (The World Bank 2013). Itremains to be seen if the mobile remittances sector can provide significantcompetition to the informal transfer networks that currently handle a largepart of the country’s remittance flows.Mohamed Elghitany, Department of Economics, Boston UniversityReference: http://tinyurl.com/SMA-WB-Report2013Liberians living in Ghanaian refugee camps reported using remittances not onlyfor consumption or in emergency situations but also to start up, and invest in,small businesses within the refugee camps too. Liberian refugees’ demand forremittance services in the camps was so great that Western Union establishedoffices in Ghana and Côte d’Ivoire specifically for the transfer of remittancesfrom the United States to Liberian refugees (Crisp 2003).Furthermore, donations channeled through NGOs, political organizations,ethnic/tribal organizations, women’s groups, alumni associations, social clubs,Remittance Flows to Post-Conflict States: Perspectives on Human Security and Development 81
and faith-based groups have supported home village projects within Liberia.Funds have been used to rebuild clinics and health centers, schools and bridges,and to provide support to rural farmers (Antwi-Boateng 2012; The Advocates forHuman Rights 2009). Members of the diaspora, primarily through the LiberianProfessionals Network, have also encouraged the Liberian government to assistin the establishment of a Diaspora Investment Fund. Such a fund would useremittances directly for investment in small and medium enterprises in Liberia(LPN 2010). Although the government has been slow to provide a comprehensiveresponse, the organization continues to advocate avenues to provide greater andmore effective investment opportunities.The Role of the Diaspora in Post-Conflict ReconstructionThe diaspora’s influence has shifted from “hard” power during the war to “soft”power during reconstruction. The diaspora has redirected its engagement withLiberia from active (especially financial) support to wielding political and financialinfluence through organization and campaigning (Antwi-Boateng 2012).Political EngagementThe August 2003 Peace Agreement established the Truth and ReconciliationCommission of Liberia (TRC) and was enacted into law in 2005. An early initiativeof the TRC was to engage the diaspora—particularly the U.S. diaspora—inits work, which it did through partnership with The Advocates for HumanRights. 14 The diaspora was able to partake in the hearings and statement-givingthat produced the final findings of the TRC report. The rationale for includingthe diaspora in the TRC process in part was a result of the diaspora’s economicinfluence, which made it also politically powerful. The Sirleaf government furthermorerecognized early on the potential for harnessing diaspora resources inpeace-building and reconstruction and therefore sought its participation (Youngand Park 2009). Political organization took other forms too. Diaspora memberscampaigned actively for various candidates during the election and the Unionof Liberian Associations in the Americas hosted meetings to discuss institutionaldevelopment and governance in Liberia both before and after the election.14 The organization was known at the time as Minnesota Advocates for Human Rights.82 A Pardee Center Task Force Report | October 2013
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Pardee Center TASK FORCE Report oct
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This series of papers, Pardee Cente
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AcknowledgementsThis Task Force on
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ITU International Telecommunication
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networks and migrant associations i
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to developing countries than other
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But most importantly, remittances a
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often mix in the countries of desti
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According to the World Bank estimat
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Because of its focus on the multidi
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eceiving remittances provides an en
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associations for post-conflict inst
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are proposed to avoid the associate
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Terry, D. 2005. Remittances as a De
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oader approach to post-conflict rem
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networks can be seen as “homogeno
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That personalized nature of hawala
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Customary law (xeer) and other trad
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Page 40 and 41: ize the informal equal efforts to a
Page 42 and 43: struction and development. Means sh
Page 44 and 45: opportunities should focus on exist
Page 46 and 47: 2. Dodd-Frank Act and Remittances t
Page 48 and 49: leadership. Formal payments systems
Page 50 and 51: and financial institutions. 26 Reso
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Page 54 and 55: issued a new proposed regulation De
Page 56 and 57: “closed network,” in which all
Page 58 and 59: Some guidance may be found in the p
Page 60 and 61: the use of mobile devices for money
Page 62 and 63: Foreign TaxesUnder the 2012 regulat
Page 64 and 65: will be available in all cases. CFP
Page 66 and 67: Section II: Remittances in Post-Con
Page 68 and 69: Sri Lanka. The conflict also result
Page 70 and 71: Figure 2: Current Account, Trade Ba
Page 72 and 73: flows came from migrant workers in
Page 74 and 75: Informal Remittance Channels in Sri
Page 76 and 77: tory authorities, with some calls f
Page 78 and 79: 4. The Role of Remittances in Post-
Page 80 and 81: Figure 1: Liberia Per Capita Income
Page 82 and 83: associations, women’s groups, alu
Page 84 and 85: Remittances to LiberiaValue of Remi
Page 86 and 87: credit because of the need to be li
Page 90 and 91: Knowledge RemittanceThe Liberian di
Page 92 and 93: process furthermore was a pioneerin
Page 94 and 95: Levitt, Peggy and Deepak Lamba-Niev
Page 96 and 97: Section III: Diaspora Networks andC
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Page 100 and 101: One of the main challenges for mobi
Page 102 and 103: 6. Transnational Remittances and De
Page 104 and 105: The Salvadoran Diaspora is very sig
Page 106 and 107: annually during the 1990s to less t
Page 108 and 109: Figure 2: Transnational Vicious Cyc
Page 110 and 111: The transnational vicious cycle not
Page 112 and 113: emittance flows is mixed, as initia
Page 114 and 115: individuals, communities, and famil
Page 116 and 117: areas. This issue can potentially b
Page 118 and 119: This is a breakthrough moment: afte
Page 120 and 121: Edwards, Sebastian and I. Igal Mage
Page 122 and 123: y La Distribucion Del Ingreso, 1st
Page 124 and 125: 7. Remittances and Community Resili
Page 126 and 127: For quantitative data collection, a
Page 128 and 129: Remittances are perceived as playin
Page 130 and 131: the affected population. Internatio
Page 132 and 133: ReferencesAddleton, J. 1984. The im
Page 134 and 135: 8. Filling the Gap in Health Staffi
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cians in the U.S. in 2000 (Clemens
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1. Remittances, Financial Inclusion
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networks, and communities. The role
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• In the present era of heightene
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the island of Kosrae, in the Federa
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and Sweden and has held visiting pr
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he organized a number of workshops
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