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remittances

Longreads: China 2013 Survey, Low Carbon Competitiveness, Pakistan’s Overseas Workers, the Great Chinua Achebe

Donna Barne's picture

Find a good longread on development? Tweet it to @worldbank with the hashtag #longreads.

 

LongreadsChina’s prospects stirred interest as the BRICs met in South Africa and a new survey by the Organization for Economic Co-operation and Development found China on course to become the world’s largest economy by 2016. The OECD study says China has “weathered the global economic and financial crisis of the past five years better than virtually any OECD country” and should be able to continue catching up and improving living standards over the next decade.  While the OECD study says China needs to shift to more environmentally friendly modes of consumption and production, a new Climate Institute/GE Low-Carbon Competitiveness Index finds that France, Japan, China, South Korea and the United Kingdom are “currently best positioned to prosper in the global low-carbon economy.”

Climate Institute/GE Low-Carbon Competitiveness Index
Climate Institute/GE Low-Carbon Competitiveness Index

Remittances a huge issue for small states

Alison Schafer's picture

Jeffrey S Gutman, Vice President, OPCS, World BankSize does matter.

But it matters far more when you are one of the World Bank’s 40 member countries with populations under 1.5 million.  These developing small states gathered together at the Bank’s annual meetings in Istanbul at the annual Small States Forum to show that, when they all agree, small can be powerful.

The World Bank’s small states, ranging from Suriname in South America, to Swaziland in Africa, to Vanuatu in the Pacific, met in a standing-room-only venue packed with attendees.  The topic on the table was remittances, the huge cash flows sent home by economic migrants working in other countries.

Almost $4.5 billion in remittances poured into small states last year, dwarfing all financial aid packages. In some countries, remittances are greater than one-fifth of GDP. Of the world’s seven most remittance-dependent countries, four are small states: Tonga and Samoa in the Pacific, Lesotho in Africa and Guyana in South America. Overall, on average, remittances matter substantially more for small states than for their large larger developing counterparts. And the worry is that remittances are drying up in the face of the global financial crunch—with a projected decline of 9 percent this year, according to the presentation by the World Bank’s Chief Economist, Justin Lin.

 

Cape Verde’s Minister of Finance, Cristina Duarte, says remittances are a huge issue for her country, and one she eagerly discussed with her fellow small state colleagues. "We concentrated a lot on analyzing and discussing the role of remittances—how can we manage better remittances, which are an important capitals inflow for our country." The bottom-line according to Duarte: no single country can survive on its own.