Pardee-CFLP-Remittances-TF-Report

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process furthermore was a pioneering move from which other countries engagedin TRC processes can learn much. However, important limitations still exist.Even greater benefits for development and reconstruction could be achieved by:1. Extending remittance services to reach more people in more remotelocationsPromoting remittances to allow more households greater access to these fundsis an important development imperative, especially while alternative sourcesof income remain limited. Attention must be paid in particular to reaching ruralareas where bank branches are less accessible. Providing greater access and/orusing microfinance networks to provide money sending-receiving services couldlower (travel) costs and disseminate the benefits of remittances more widely.Using microfinance networks and mobile technology may be a way in whichthe rural poor could benefit from money-sending services in ways they currentlycannot.2. Allowing dual citizenship for Liberians living in the diasporaA significant hindrance to longer-term investment in Liberia for many in thediaspora is the fact that they are not able to hold dual citizenship. The Liberiangovernment would be much better served by revising this policy and to allowthis transnational community to maintain ties equally to both home and hostcountry. The Liberian diaspora is a transnational population in the truest sense;its members are likelyto invest more time andresources in Liberia ifthey were able to movefreely between the twoplaces.Remittances for post-conflict states likeLiberia are an invaluable source of income.But, it is important that remittances notbecome a substitute for structural development.3. Exploring ways to leverage remittances to finance investment throughdiaspora bonds and securitization of remittance flowsThe African Development Bank (AfDB) has made the case that diaspora bonds“have a rich history of bailing out countries in times of crisis” and that securitization“will help countries in Africa access international capital markets, reduceconvertibility risk, and obtain investment-grade ratings” (Shimeles 2010). ManyAfrican countries face institutional constraints to exploring these financingoptions, but AfDB and the World Bank have suggested solutions to these limita-Remittance Flows to Post-Conflict States: Perspectives on Human Security and Development 85
tions (Ratha et al. 2008). Given Liberia’s weak financial markets and infrastructuredeficiencies, finding new sources of financing development is imperative.Remittances for post-conflict states like Liberia are an invaluable source ofincome. But, it is important that remittances not become a substitute forstructural development. Being first (or second in Liberia’s case) in remittancesis not, in itself, a laudable achievement. There are downsides to remittancedependence,too. Small, closed economies with large inflows of remittances andlittle absorptive capacity may experience exchange rate appreciation, inflation,and an erosion of external competitiveness. Although their benefits certainlyoutweigh their costs in Liberia, remittance flows may furthermore create disincentivesfor the government to provide jobs and other economic opportunities(Grabel 2008). Remittances can—and do—support reconstruction in war-torncountries like Liberia but remittances cannot sustainably be a replacement forgovernment reform, investment, and reconstruction.ReferencesAntwi-Boateng, Osman (2012). “The Transformation of the US-Based Liberian Diaspora from HardPower to Soft Power Agents,” African Studies Quarterly, Vol. 13, Issues 1 & 2.Central Bank of Liberia (2011). “Directive To Promote Competition Concerning InternationalMoney Transfer Operations” Available at http://www.cbl.org.lr/doc/superdoc/promotion.pdf.Central Bank of Liberia Annual Reports (2009 and 2012). Available at http://www.cbl.org.lr/annual_reports.php?sub=annuals.Crisp, J. (2003) “No Solutions in Sight: The Problem of Protracted Refugee Situations in Africa,”New Issues in Refugee Research No.75, United Nations High Commission on Refugees.Freund, Caroline and Nikola Spatafora (2005). “Remittances: Transaction Costs, Determinants,and Informal Flows” World Bank Policy Research Working Paper 3704. Washington, D.C.: TheWorld Bank.Grabel, I., (2008). “The Political Economy of Remittances: What do we know? What do we needto know?” PERI Working Paper No. 184, Political Economy Research Institute, University ofMassachusetts, Amherst/.Grigorian, David A., J. Scott Shonkwiler and Tigran A. Melkonyan (2008) “Garbage In, Gospel Out?Controlling for the Underreporting of Remittances,” IMF Working Paper No. 08/230. Washington,D.C.: International Monetary Fund.Gupta, Sanjeev, Catherine Pattillo, and Smita Wagh (2007). “Making Remittances Work for Africa”Finance and Development, 44:2.Hughes, Caroline (2011). “The politics of knowledge: ethnicity, capacity and return in post-conflictreconstruction policy” Review of International Studies 37(04):1493–1514.International Bank (Liberia) Limited (November 2007). “Review of Liberia’s Economy, FinancialSector and Investment Opportunities” Available at: http://www.ibliberia.com.International Labor Organization (2011). “Statistical Update on Employment in the InformalEconomy” International Labor Organization (ILO) Department of Statistics, June 2011.International Monetary Fund (2009). “International Transactions in Remittances: Guide for Compilersand Users” Washington, D.C.: International Monetary Fund.86 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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the world (Lindley 2009, 531). Much
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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
Page 52 and 53: closures should be both in English
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 88 and 89: Remittance Transfers in Sierra Leon
Page 90 and 91: Knowledge RemittanceThe Liberian di
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
Page 136 and 137: The alternative is for donors to se
Page 138 and 139: cians in the U.S. in 2000 (Clemens
Page 141 and 142: 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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