Paper
Working in Partnership to Build Inclusive Financial Systems: Remittances and Microfinance
Presentation at European Microfinance Week - Strengthening MFIs in developing countries
This Department for International Development (DFID) presentation explores how remittances can work with microfinance to build inclusive financial systems. It states that:
- DFID's goal is to build financial systems that benefit the poor;
- Remittances aid development by increasing incomes, reducing poverty and through multiplier effects;
- DFID has the following objectives with regards to remittances:
- Make remittances through formal channels more attractive,
- Remove barriers to remittances,
- Improve access to remittances and other financial services,
- Increase impact on development;
- DFID initiatives regarding remittances include:
- Sending Money Home;
- Remittance Country Partnerships.
Further, the presentation proposes that for remittances to act as a driver of financial inclusion, there is a need for:
- Greater use of technology;
- Better functioning payment systems;
- Working with Diaspora, by:
- Building on the skills and talents of migrants and other ethnic minorities to promote the development of their countries of origin,
- Looking at Diaspora as a source of funds and as investors.
The presentation concludes by providing information about DFID's work with Sierra Leone Diaspora.
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