Money remittances by migrant workers world to developing world countries have increased to US$372 million (approximately$1.4billion) the latest World Bank’s Migration and Development Brief shows.
The Brief shows that, “Global remittance flows, including those to high-income countries, were an estimated $501 billion (approximately N$4trillion) in 2011.
According to the World Bank remittances sent home by migrants to developing countries are three times the size of official development assistance and can have profound implications for development and human welfare.
World Bank also argue that remittances can contribute to lower poverty and to the building up of human and financial capital for the poor.
“Despite the current global economic weakness, remittance flows are expected to continue growing, with global remittances (including those to high-income countries) expected to reach $615 billion by 2014.
Remittance flows to developing countries are expected to grow at 7-8 percent annually to reach $467 billion by 2014.
Flows to Sub-Saharan Africa were estimated at $22 billion in 2011 and are forecast to reach $27 billion in 2014. Flows into Namibia have increased from $9 million in 2000 to $16 million in 2011,” World bank notes.
Due to the increase in the contribution to money supply worldwide by remittances from migrant workers there is now a growing call for the forthcoming G20 summit to have transaction charges cut down Professor Immanuel Argo an international finance specialist who visited Namibia argues.
Argo also argued in his response to the World Bank brief that, “This programme aims to reduce the exaggerated cost of commission levied on remittances by the money transfer industry.
Furthermore it aims to support and promote professional and entrepreneurial capacity building in developing countries worldwide.
Its priority is to exclusively promote Small and Micro Enterprise professionals and the small business sector with a special emphasis on women and youths in African countries.
"In particular countries where Diaspora is mostly involved abroad with remittances and money transfers are leverage for poverty alleviation.”
Argo was making his arguments within the framework of the Commission for Africa, of Millennium Development Goals, ODA (Official Development Assistance) and recommendations made to the G8 Summits: Russia 2006, Heiligendamm Germany 2007. According to Prof. Argo, Namibia has the ability to develop its economy from the growing remittances,
“Although it is considered a relatively small economy with limited populace, Namibia’s socio-economic sustainability, developed financial industry, related infrastructure and political stability favorably position it. Similarly, we can consider the case of Switzerland, a small country, which has evolved into a global financial behemoth.”
He also noted, “One of RMIC’s goals, is to promote and offer capacity-building initiatives leading [in particular] to business and technology diplomas as well as Masters and engineering degrees by using e-learning distance opportunities. It is also to promote small and micro-enterprises involved in job creation.”