Remittances for Christmas and Beyond – From Guyana’s Diaspora

I wish all TRAKKER readers and fans good health, peace and progress for 2012.

And I wish that the new Guyana government would copy a page from the Alliance For Change (AFC) 2011 Campaign Manifesto and create a Foreign Ministry “DEPARTMENT OF THE DIASPORA”.   Why?  Because the hundreds of thousands of Guyanese born in the Guyana Land of the Mighty Roriama who now live in other countries – are actually vital to the social existence of many Guyanese working class families still within the Green land’s borders.

 This is a short brief on REMITTANCES – and More – as the Guyana Diaspora manifests and demonstrates its significance to the livelihood of their kinfolk and organizations back in Guyana, itself.

MONEY THAT MATTERS

The obvious contribution by the Diaspora to the Guyana homeland is the cash remittances sent weekly or monthly, to relatives, friends and organisations.  Barrels, boxes and equipment; expertise and personnel are shared too, but in this piece, we examine briefly THE CASH, THE MONEY sent and received.

There is an International Fund for Agriculture Development (IFAD).  This international institution has a FINANCING FACILITY FOR REMITTANCES (FFR) Department.  This FFR, reportedly, was established five years ago to actually mobilise the “profits” from  remittances to fund poverty reduction projects in struggling Third World economies.

Guyana in 2010, received some $280 million (US) in those remittances  sent by its Diaspora to folks at home.  And the FFR is reporting that the total GLOBAL remittances for 2011 is set to be around US $350 Billion!  Readers could easily understand the significance and impact of this new resource.

This is what a local Guyana editorial shared with Guyanese in mid-November last:  “With growing numbers on the world’s people living outside of their countries ob birth – estimated at some 215 million – and a significant number of these sending money back home, FFR projects will more likely expand significantly as well”.

The FFR noted that for last year alone, the diaspora in developed countries remitted US$ 325 billion to families in developing countries,  through, among other things, money transfers to family and relatives, investments, trade, philanthropy and knowledge transfers,.  It is estimated that money transfers which were typically US$200 or US$300 at a time, involved more than one-and-a-half billion separate financial transactions, each costing a not insignificant sum of money.

This money is used primarily to help meet the immediate needs of family members back home, some of whom live on the brink of or below the poverty line.  Mothers and fathers, who have left children behind or persons who have left elderly relatives of pensionable age or who might be infirm, remit money 12 times a year.  It ensures that loved ones in developing countries can afford rent, utility costs and food, and that educational costs (tuition and transportation).

In addition, it was noted, significant sums of money are also remitted for investment and for savings – often for immigration’s retirement and eventual return home “ or for the relatives”

A SOURCE TO BE TAPPED

So this relatively new fiscal phenomenon – the surge in remittances Developed countries to Under-Developed – is a source to be exploited for the good and welfare of the recipients.

There are plans to ramp up efforts to reduce the transfer costs of sending remittances to poorer countries and ultimately, to use accrued fees to fund projects in immigrants’ countries of origin.  Remittances will thus benefit recipients twice – personally and nation-wide.

TRAKKER will next explore new USA Immigration Reform as well as Guyana’s Overseas –Based Organisations.

HAPPY 2012!