Worker Remittances: An International Comparison

Publication Date: 28 Feb 2003
Published by: IADB - Inter-American Development Bank
Document Type: Paper

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What is the status of remittances across the world?

This presentation gives an international comparison of the remittance scenario. It gives a brief background on:

• Global trends in international remittances;
• Payment systems, distribution networks and costs;
• Transfers from the United States to the main recipient countries.

The presentation then gives an overview of the remittance scenario in different countries:

• Philippines:
  • Competitive market;
  • Significant participation of Filipino banks as money transfer operators.
• India:
  • State bank offers bonds and accounts to non-residents;
  • Accounts have higher interest and reduced tax rates.
• Portugal:
  • Accounts offered to non-residents at reduced tax rates;
  • Special financing programs to build or buy homes in Portugal;
  • Low cost remittance transfers.

The presentation concludes that:

• Trade, transportation, telecommunication, transfer of remittances, tourism and nostalgic trade intensify the links between migrants and their home countries;
• Countries with a longer history of migration tend to rely more on banking institutions;
• Alliances between governments, civil society and private sector institutions must be formed to share best practices and to coordinate strategies to improve the flow of transfers.