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Remittances: the new development finance?
01.03.2004
As the level of international remittances sent home to developing countries overtakes official development assistance and continues to rise, it is becoming dubbed by some as the new development finance. International agencies are recognizing the importance of remittances, and this article reflects on a conference organized by the World Bank and DFID on this subject which explored, among other issues, what governments and donors can do to enhance the positive impact of the remittance industry on the poor. Areas discussed include: lowering transfer costs by promoting competition, appropriate levels of regulation, researching underserved markets, widening access to rural communities and seeing the potential for boosting banking services among the previously unserved.