GLOBAL

                                                                                                                                                                                                                                             DEVELOPMENT STUDIES

                                                                            Copyright © 2007 International Development Options

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Volume Four                                                                   Winter 2006-Spring 2007                                                              Numbers 3-4.

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  Theme: Global Labor Migration and Emerging Trends in Development Finance: An Assessment of the

  Economic and Social Impact of Migrant (Worker) Remittances in Central America and the Caribbean 

   REMITTANCES TO CARICOM COUNTRIES: POLICY ISSUES AND OPTIONS

 

   Claremont Kirton                                                              Georgia McLeod

   Senior Lecturer                                                                Assistant Lecturer/         

   Department of Economics                                              Junior Research Fellow

   University of the West Indies                                          Sir Arthur Lewis Institute off

   Mona, Kingston, Jamaica                                                Social and Economic Studies (SALISES)

   Mona, Kingston, Jamaica

   

   Published Online: February 10, 2017

   ABSTRACT

 

In 2005, remittances to Latin American and the Caribbean (LAC) countries were US$53.6 billion, representing roughly one quarter of the total worldwide flows of worker remittances.  These remittances account for approximately 3 percent of the region’s gross domestic product (GDP), 10 percent of its total exports of goods and services, and 11 percent of its total imports. Available data indicate that the magnitude of these flows is growing. Only a few studies in the last decade have assessed the role remittances play in the economic and social development of the English-speaking Caribbean.  Even fewer have examined the policy interventions available to Caribbean policy makers targeting migrants’ remittances. Though not exhaustive, policy measures to enhance the development impact of remittances include remittance bonds, premium interest rate accounts, facilitating transfers through micro-finance institutions, tax breaks on imported capital goods and outreach through migrants’ services institutions.  This article examines selected international best practices, especially by developing countries, geared towards maximizing the development impact of remittances.  It outlines an inventory of policy measures and assesses their relevance, usefulness and applicability in the context of CARICOM countries.

                        

 

 

IDO        ISSN: 1093-8281                 Copyright © 2017 International Development Options

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