The remittance market in the South Pacific is
set to become tougher for money transfer specialists thanks to an
initiative launched by the Australian Agency for International
Development (AusAID) and the New Zealand International Aid and
Development Agency (NZAID). Focused on remittances from Australia
and New Zealand to eight South Pacific island nations, the
objective is to lower remittance costs for migrant workers by
enhancing market competitiveness and transparency.
set to become tougher for money transfer specialists thanks to an
initiative launched by the Australian Agency for International
Development (AusAID) and the New Zealand International Aid and
Development Agency (NZAID). Focused on remittances from Australia
and New Zealand to eight South Pacific island nations, the
objective is to lower remittance costs for migrant workers by
enhancing market competitiveness and transparency.
Central to the initiative is a website to be
developed by UK-based Developing Markets Associates (DMA), a
consultancy with 20 years’ experience in the field of remittances
and inward investment flows to emerging markets. The website, due
to be launched in early 2009, will enable users to compare
remittance costs, methods of transfer, speed of transfer and
exchange rates.
developed by UK-based Developing Markets Associates (DMA), a
consultancy with 20 years’ experience in the field of remittances
and inward investment flows to emerging markets. The website, due
to be launched in early 2009, will enable users to compare
remittance costs, methods of transfer, speed of transfer and
exchange rates.
The website will follow a pattern already set
by similar initiatives in other parts of the world aimed at helping
to reduce the total costs paid by remittance customers. Similar
initiatives include those in the UK, Germany, Netherlands and
Norway.
by similar initiatives in other parts of the world aimed at helping
to reduce the total costs paid by remittance customers. Similar
initiatives include those in the UK, Germany, Netherlands and
Norway.
The AusAID/ NZAID initiative comes at a time
when the Australian government is considering introducing what it
terms a “guest worker” programme to enable citizens of five South
Pacific island nations to work in Australia. According to a press
releases quoting Australian Foreign Minister Stephen Smith,
remittances from Pacific islanders working overseas are already
worth over $430 million a year. However, he noted the Pacific
islands are among the costliest destinations in the world to send
money to.
when the Australian government is considering introducing what it
terms a “guest worker” programme to enable citizens of five South
Pacific island nations to work in Australia. According to a press
releases quoting Australian Foreign Minister Stephen Smith,
remittances from Pacific islanders working overseas are already
worth over $430 million a year. However, he noted the Pacific
islands are among the costliest destinations in the world to send
money to.
Included in the AusAID/ NZAID initiative is
Fiji, with a population of about 850,000 the largest of the Pacific
island states. According to AusAid, about a third of Fijian
households receive remittances, which make an aggregate
contribution of about 10 percent of GDP. AusAid noted there is only
one player in Fiji’s remittance market, Western Union, and as a
result remittances are expensive at about 10 percent of the amount
sent.
Fiji, with a population of about 850,000 the largest of the Pacific
island states. According to AusAid, about a third of Fijian
households receive remittances, which make an aggregate
contribution of about 10 percent of GDP. AusAid noted there is only
one player in Fiji’s remittance market, Western Union, and as a
result remittances are expensive at about 10 percent of the amount
sent.
Stressing the importance of lower remittance
costs the initiative partners highlighted that the World Bank has
estimated if the cost of remittances around the world were to fall
by 5 percentage points an additional $13 billion could be received
by the beneficiaries of remittances in some of the world’s poorest
households.
costs the initiative partners highlighted that the World Bank has
estimated if the cost of remittances around the world were to fall
by 5 percentage points an additional $13 billion could be received
by the beneficiaries of remittances in some of the world’s poorest
households.
