Posted by: Armel | February 27, 2008

REMITTANCES PLAY A ROLE

western-union.jpg        MORE CASH COMING IN

If I am to believe the data from cash transfer activity during similar crisis in recent memory in Africa (Nigeria, Kenya, Ivory Coast), history suggest an even higher inflow of cash from Europe and the Americas (US-CAN) to Cameroon is to be expected. This is quite understandable given the general sense of concern from the Cameroonian Diapora for their families.

We should not forget the real impact of fund transfers from western countries to the developing economies. The IMF Report on the subject is quite significant. In 2005, remittance totaled $188 billion—twice the amount of official assistance developing countries received. On top of it all, there is evidence that such flows are underreported. Indeed, remittances through informal channels could add at least 50 percent to global recorded flows*

I intend to further explore the revenue streams underneath those steady fund transfers another time.

Armel Njeunou

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Responses

  1. More on this coming soon…

  2. This is a well known fact that the remittances are the second most important source of revenue for most developing countries, the first one being, FDI. In countries like Philippines, the remittances determine the social, political and cultural changes that take place from time to time. In this global age it is quite natural for the developed countries to fall back on on the developing countries for man power but with 2 Asian countries, having huge population emerging as the next super powers time would tell what the fate of the overseas workers is likely going to be.

  3. @ REmitter,

    Good point !


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