Australia is working to make it cheaper for migrants from developing countries to send money home and support their communities.
Foreign Minister Kevin Rudd today announced a $3.5 million package of assistance to provide practical support over two years to help Pacific and other Commonwealth developing countries drive down the costs of sending money home.
Every year, workers overseas send more money to their communities than rich countries give in aid. Remittances (the money sent home by overseas workers) are predicted to reach $350 billion globally by the end of 2011.
Driving down barriers to sending remittances means more money will reach the hands of the poorest families.
Practical assistance will include such things as price comparison mechanisms to increase transparency and competition, and drive down prices.
Australia and New Zealand's own 'Send Money Pacific' website has contributed to reducing the costs of sending $200 to Pacific Island countries by approximately six dollars or three percentage points between January 2009 and June 2011.
Australian assistance will also support the uptake of new technology such as mobile banking services to increase access to financial services.
This builds on Australia's active support to lower remittance costs through the G20 and Pacific Islands Forum Economic Ministers' Meeting.
More information
- Media Release: Reducing the Cost of Remittances for Commonwealth Developing Countries (external site)
- Visit the Send Money Pacific website which promotes transparency in remittance prices (external site)
- Visit the Global Remittance Prices website which tracks global remittance prices
- Find out about
The Pacific Financial Inclusion Programme (external site) co-funded by AusAID that supports innovation in domestic and international remittances – especially the latest on mobile remittances