z-logo
Premium
Beyond control? The mechanics and dynamics of ‘informal’ remittances between Europe and Africa
Author(s) -
PIEKE FRANK N.,
VAN HEAR NICHOLAS,
LINDLEY ANNA
Publication year - 2007
Publication title -
global networks
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.685
H-Index - 65
eISSN - 1471-0374
pISSN - 1470-2266
DOI - 10.1111/j.1471-0374.2007.00173.x
Subject(s) - remittance , control (management) , process (computing) , task (project management) , economics , development economics , public economics , political science , economic growth , computer science , management , operating system
Policy making usually assumes that the best way to harness migrant remittances for development is by shifting them into the regulated money transfer sector. However, much research evidence concludes that alternative methods are often cheaper and more reliable, accessible and convenient. In this article, we explore this tension between policy objectives and evidence. Based on a review of remittance mechanisms in seven sub‐Saharan African countries, we question the validity of the distinction between ‘formal’ and ‘informal’ remittances. We conclude that the formalization of remittance systems should not be approached as a regulatory task carried out from the top down, but as a bottom‐up evolutionary and organic process that should be encouraged. We suggest that the current regulatory thrust in this area is likely to be counterproductive, since it risks undermining the many vibrant institutions emerging through the movement of migrants and their money, together with their potential to enhance much needed economic and social development.

This content is not available in your region!

Continue researching here.

Having issues? You can contact us here