Friday, June 16, 2006

Can remittances hurt countries?

Several countries in Latin America that benefit greatly from the remittances sent to their country from abroad. The region received $52 billion in money sent from abroad, and governments and banks are making it easier to send out remittances. Yet recent analysis seems to show that remittances may not be without its flaws. In El Salvador, for instance, economists worry that remittances are increasing the cost of living, while in the Dominican Republic remittances are not reaching the poorest people. Is Latin America relying too much on remittances, or are the economists a little too alarmist?

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