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SDGs

Putting the spot-light on worker-paid recruitment cost

Ganesh Seshan's picture
In observance of the International Migrants Day, Dec 18

The United Nations 2030 Sustainable Development Agenda, in particular Goal 10.7, calls for a facilitating safe, orderly and responsible migration through the implementation of planned and well-managed migration policies.
 

Would investing in financial literacy help reduce the use of informal channels?

Ibrahim Sirkeci's picture

Reducing remittance costs are recognized as a vital element of the financing for development strategy and is one of the targets in the Sustainable Development Goals and the Addis Ababa Action Agenda. However, studies show that remittances remain to be a private affair operating mostly at household level.

It is also expected that reduced costs would encourage use of formal channels such as banks and money transfer operators. There are increasingly more money transfer operators in the market offering lower costs among the mainstream MTOs and digital ones. Mobile phone companies and many small operators are also competing on costs. Dilip Ratha clearly puts the argument for reduced costs in his TED talk.