{{The Least Developed Countries Report 2012, subtitled Harnessing Remittances and Diaspora Knowledge to Build Productive Capacities revealed that Rwanda’s remittance flow has grown to 44% between 2002 and 2011.}}
However, the report says developing countries migrants continues to pay much cost on remittance flows.
It says that the cost on remittance in Least Developed Countries (LDCs) ranges between 4% and 25% of the total amount that a migrant sends to its destination.
For example a Rwandan in Tanzania may pay 19% of remitting.
If only Sub-Saharan Africa paid world average remittance fees, their receipts would have been $6 Billion higher in 2010.
The report says Remittances to LDCs grew from $3.5 billion in 1990 to $27 billion in 20011.
Only countries like Bangladesh, Nepal and Sudan receive 66% of total remittance inflows.
The reason behind the increase in remittance is the fact that the number of migrants from LCDs increased from 19 million in 2000 to 27 million in 2010.
Another thing is that the amount of money that remitters send to recipients increased from US$ 1 in 1990 to US$30 dollar in 2011.
Though, remittances increased, the migration flow continues to affect the development of LDCs.
The report says that some high skilled people leave their country of origin to abroad to look for better life and this affects other sectors like lack of skilled people in health, education, agriculture,…
On the side of Rwanda, the number of highly qualified people living abroad shifted from 40% in 1990 to about 20% in 2000.
{{Economists react on the report:}}
Mr. Andrew Mold, Head of Macroeconomic and Social cluster at SRO-EA, who presented the report in Kigali, said that there is a problem that countries are not capturing the number of remittances flow which largely goes in private transfers directly to families – to improve the breadth and abilities of their economies.
He added that there should be lower remittance cost and increase of remitting facilities.
{{Currently, most of remitters use Western Union. }}
Other economists say that 48 least developed countries (LDCs) should take steps such as improving domestic banking and financial services, so that a greater proportion of such money is available for investment, small business development, and job creation for increasingly urbanized populations who cannot depend for their survival on farming.
In particular, the Report recommends that these significant flows of money be channelled effectively into improving LDCs’ productive capacities – that is, the abilities of their economies to produce greater varieties of goods and services, and more sophisticated goods, for domestic use and export.
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