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No Money, No Worry

Maya Brahmam's picture

Rafu, the chief of the fishing villageThe World Bank recently completed two surveys that confirm that large global banks are restricting or terminating relationships with other financial institutions and that banking services for money-transfer operators have become increasingly limited.

The risk is that a decline in correspondent banking services can lead to financial exclusion, particularly for remittance providers – poor people working in richer countries who send money home to their families in poorer countries. To a large extent, these restrictions have come about because of worries about money laundering or financing for terrorism and less appetite for risk.

However, there are alternatives. Mobile money is a fast-growing alternative to traditional banks. CBS’s Lesley Stahl recently reported on how MPesa has transformed financial inclusion in Kenya, where people- many of them poor- do most of their financial transactions via cellphone and outside of traditional banking systems.  She also pointed out that tech giants like Google, Facebook, PayPal and Apple are all exploring this new consumer market, where sending money can be as simple as sending a text message. Also, according to the Financial Times, mobile money is making serious inroads in Latin America, where 37 mobile money services are now operational across 19 countries. Unlike the experience of Africa, Latin Americans are using mobile money to support urban middle-class lifestyles.

Weekly Wire: the Global Forum

Kalliope Kokolis's picture

These are some of the views and reports relevant to our readers that caught our attention this week.

International development according to Hollywood
“International development is just about at the bottom of the list of things that the average American thinks about each day.
Foreign bureaus are closing for major US news sources. One of the big television networks turned down more money for global health reporting after a series, entirely funded by grants, led to a dip in viewers. In other words ratings were so bad that the network turned down millions of dollars. It is that tough.
Aside from advocacy efforts like Kony 2012 and Oxfam advertisements, how are people learning about the world around them if they are not reading the news? The answer could be Hollywood.”  READ MORE