Remittances, Development & NGO Sustainability

• According to Orozco (2005), the flow of remittances has far exceeded the entire amount spent on international aid and development. • In 2006, IFAD in partnership with the European Commission implemented the Financing Facility for Remittances (FFR) in Latin America. • In 2007, DFID supported the remittances and Payments Challenge Fund (RPCF) in Bangladesh

Remittance and Financial Access
• These pioneer interventions establish a new process for expanding access to financial services in poor countries. • Remittances are powerful sources of finance made available to developing countries. • Although remittances cannot directly influence the outcomes of poverty reduction, they can still complement efforts of the international

Remittances and Microfinance
• Following IFAD’s success on using remittances for reducing poverty in Latin America, it is now upscaling the idea to other parts of the world. • Remittances can be used as a source of sustainable capital for expanding the activities of microfinance in developing countries. • The migrant resources can be used as investments for community-based development.

NGO Sustainability
• NGOs can manage the remittance operations for providing direct services to communities in microfinance and microenterprises.

For more, visit: www.fundsforngos.org

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