New York Times: Migrants and the Middlemen
“…Last year alone, migrants in rich countries sent an estimated $404 billion to their families in developing countries. The money pays for daily needs, as well as for health, education, and emergencies. But the cost to transfer those billions is likely to rise soon, resulting in more money for middlemen and less for the poor, while reversing years of progress toward lower money-transfer fees. … If banks can’t profitably transmit remittances — and won’t do so as a low-margin courtesy — then other secure, low-cost options must be found. One solution would be for the World Bank to become a remittance center. It has the expertise. And it would not take business away from the big banks, which have thrown in the towel on reasonably priced cash transfers. What it would do is ensure that more of migrants’ hard-earned money reaches their families, and, in that way, advance the mission of the World Bank to alleviate poverty” (7/9).