If remittances are measured in terms of their share in the GDP, the largest recipient countries are Tonga, Lesotho and Jordan.

The bulk of remittances is channeled through money transfer operators (Western Union, Money Graw and Thomas Cook being the major players), which account for up to 70 of remittances transfers from the United States to Latin American countries.

Working groups including private and public institutions could be created both in recipient and sender countries in order to collaborate in the identification of obstacles to remittances flows and ways to remove them.

The market and the costs of remittances

Cape Verde received 34 of its GDP from remittances, Eritrea 38 and Burundi 23 . In Asia, the figures were 30 for Afghanistan and 38 for Tajikistan, while in Europe Moldova received 31 of its GDP from external sources.

Developing countries are the main beneficiaries of remittances, accounting for 65 of all inflows.

Recorded remittances flows out of Germany reached Euro 3.18 billion in 2004.

A number of initiatives have been undertaken by different stakeholders with a view to facilitating the transfer of workers' remittances to their countries of origin and magnifying their impact on the domestic economy.

There are different approaches to the problem, particularly between remittance source States and remittance receiving States.

Germany is successfully working together with recipient countries, in particular with Turkey, and has significantly reduced the cost of remittances.

Developing countries are the main beneficiaries of remittances, accounting for 65 of all inflows.

Recognizing further that there is a need to address and to promote conditions for cheaper, faster and safer transfers of remittances in both source and recipient countries, and the need to facilitate the potential of their productive use in recipient countries by beneficiaries that are willing and able to do so,

Remittances.

They should also adopt specific policies to affect volumes of remittances, remittance transfer mechanisms, management of remittance funds, the use of remittances and diaspora contributions to development.

Facilitation and reduction of the cost of transfer of migrant remittances

In order to maximise the impact remittances have on the economic activity of the recipient country (the multiplier effect'), the development of new financial instruments, such as loans backed on remittances, might have positive results.

The immediate measure to allow for the reduction of remittances' costs would be to encourage senders and recipients to make use of banks and other financial institutions that is to say, to bank the unbanked , both in developed and developing countries.

The international community should develop mechanisms to register money transfer services in order to prevent the misuse of informal money transfer systems such as hawala system.

Multiple initiatives have been undertaken both on a national and multilateral basis during the recent years to facilitate remittances flows.

Recognizing further that there is a need to address and promote conditions for cheaper, faster and safer transfers of remittances in both source and recipient countries, and the need to facilitate the potential of their productive use in recipient countries by beneficiaries that are willing and able to do so,

The importance of remittances relative to other capital flows varies considerably across receiving countries.

60 206. Facilitation and reduction of the cost of transfer of migrant remittances

Facilitation and reduction of the cost of transfer of migrant remittances

Regulate informal value transfer systems, such as hawalas.

The provision of technical assistance to small financial institutions in remittances' recipient countries therefore reducing transfer costs becomes highly relevant too, as it can encourage voluntary agreements between financial institutions in receiving and sender countries.

Fostering the channelling of remittances through financial institutions ( bancarization').

Her own country, with its many emigrants who repatriated funds to support their families, was particularly concerned by the need to lower the cost of remittances.

Remittances from migrant workers continued to increase and largely exceeded official development assistance in some countries, they were the largest source of foreign exchange.

3. Calls upon all States to allow, in conformity with international legislation, the free flow of financial remittances by foreign nationals residing in their territory to their relatives in the country of origin

3. Calls upon all States to allow, in conformity with international legislation, the free flow of financial remittances by foreign nationals residing in their territory to relatives in the country of origin

When your money order comes, or you can send it, whatever.

Migrants' remittances to their countries of origin amounted to only 7 percent of their total income the balance of 93 per cent remained in the countries of destination.

The remittance system of Hawala does not obtain in this jurisdiction.

3. Calls upon all States to allow, in conformity with international legislation, the free flow of financial remittances by foreign nationals residing in their territory to relatives in the country of origin

In economic terms, workers' remittances were systemically important, accounting for 1.3 per cent of developing countries' gross domestic product in 2002.

For many low income countries, remittances as a share of GDP and imports are larger than in the case of middle income countries.

Recognizing that remittance flows constitute sources of private capital and that remittances have increased over time, complement domestic savings and are instrumental in improving the well being of recipients,

In some countries, the mechanisms available in the market for the transfer of remittances have experienced great changes over the past few years.

Remittances are relatively concentrated in a group of 20 developing countries, which stand for 80 of total world remittances.

Remittances from emigrant workers constituted a major source of additional income for their families and a reliable source of foreign exchange for the destination countries.

In 2002, remittances accounted for 1.3 of the GDP, 55.9 of foreign direct investment and 140 of aid flows in the developing world.

To enhance the development impact of remittances, both recipient and origin countries should pursue integration of migration and remittances in their development policy.

Remittances have become the second largest source of foreign exchange for developing countries, following foreign direct investment (FDI).

In addition, studies confirm that whereas remittances have been positively correlated to growth in host countries, they tend to be counter cyclical in nature, as emigrants tend to send more money in times of economic downturn in their homelands.

Transfers and remittances