Remittances volumes to low- and middleincome developing countries have a potentially large development impact because they are three to four times bigger than official development assistance and more stable than foreign direct investment.
They are projected to reach US$450 billion in 2017 (KNOMAD 2017).
On such important volumes, the slightest decrease in transaction cost amounts to millions more channeled to end recipients.
Humanitarian crises pose a formidable development challenge. While the nature and incidences of these crises vary significantly, they affect millions of people, particularly the most vulnerable. Some populations are displaced from their communities or countries as a result of crises; others stay where they are, by choice or necessity. Forced displacement is becoming more common with the number of individuals displaced by conflict or violence peaking at 65.3 million in 2015, and an additional 25.4 million people displaced every year due to natural disasters and climate-related events.
Thea Anderson, Muhammad Syahrin
The shift away from in-kind aid as the preferred mechanism for humanitarian assistance has contributed to the rise of cash transfers in Kenya. In 2008, the World Food Programme (WFP) for the first time shifted strategically from a food aid to a food assistance strategy, recognizing new and diverse ways in which the organization could address global hunger.
Haiti is the poorest country in the Western Hemisphere, with 80 percent of Haitians living under US$2 per day. In 2010, Haiti had 2.5 bank branches for every 100,000 adults, down from 2.9 the previous year. Haiti also had an estimated 35 percent mobile penetration in 2010, up from 5 percent in 2006; 85 percent of Haitians had access to a mobile phone.
This Brief presents guidelines intended to help MFIs provide the appropriate range of emergency and longer term assistance to their clients, while helping both MFIs and donors ensure the ultimate mission of the MFI--to be a sustainable provider of financial services--is not compromised.