The World Bank Group, a group of five organizations with a mission to improve living standards for people in the developing world, has published the fourth iteration of its Remittance Prices Worldwide database. The database indicates that the global average total cost for sending USD 200 is down since the third quarter of 2009 to 8.72 percent. Although the average from the previous iteration was not calculated, a complete list of country pricing can be found here. This iteration covers 178 country corridors, including 11 that are new. Comprising these corridors are 24 major remittance-sending countries and 85 receiving countries. The least expensive corridor is Singapore to Bangladesh through which, on average, it costs USD 4.48 to send USD 200 (2.24 percent). Payments from Australia to Papua New Guinea, the most expensive, cost USD 43.32 (21.66 percent). In 2009, remittances totaling USD 420 billion were sent by 192 million migrants. The site was originally launched in September 2008.
By Christopher Maggio, Research Assistant
About
World Bank Group
Description
The World Bank Group consists of five closely associated institutions, all owned by member countries that carry ultimate decision-making power. Each institution plays a distinct role in the Group’s mission to fight poverty and improve living standards for people in the developing world. The World Bank Group encompasses the World Bank, which consists of the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA); the International Finance Corporation (IFC); the Multilateral Investment Guarantee Agency (MIGA) and the International Centre for Settlement of Investment Disputes (ICSID).
Established in 1944, the World Bank is comprised of two development institutions, IBRD and IDA, which provide leveraged loans to developing countries for capital programs.
IBRD makes loans and grants and provides analytical and advisory services to middle-income countries and poorer countries that are deemed creditworthy, with the aim of promoting sustainable development to reduce poverty.
IDA offers interest-free credits and grants to the world’s 81 poorest countries, where a majority of the people lives on less than USD 2 per day. IDA resources and technical assistance support country-led poverty reduction strategies in key policy areas: increased productivity, better governance and accountability, an improved private investment climate and access to education and healthcare.
Established in 1956, IFC was created to support financial private sector development, mobilize private capital and provide advisory and risk mitigation services to businesses and services in emerging markets. Unlike the World Bank, which finances projects with sovereign guarantees, the IFC finances projects without sovereign guarantees, which means that the IFC is primarily active in private sector projects.
Established in 1988, MIGA’s mission is to promote foreign direct investment (FDI) in developing countries to help support economic growth, reduce poverty and improve people’s lives. It does this by providing political risk insurance (guarantees) to the private sector.
Established in 1966, ICSID facilitates the settlement of investment disputes between governments and private foreign investors through conciliation and arbitration. Its aim is to foster an atmosphere of mutual confidence between states and investors in order to promote increased flows of international investment. ICSID is an autonomous international organization. However, ICSID’s Administrative Council is chaired by the World Bank Group’s President.
Also housed in the World Bank is the Consultative Group to Assist the Poor (CGAP), an independent policy and research center guided by the aim to promote financial access for the world’s poor. The World Bank was one of the founding donors of CGAP in 1995.
Additional Resources
IFC press release entitled ‘World Bank Group Shows Costs of Sending Remittances Down, but More Needs to be Done’: http://www.ifc.org/ifcext/media.nsf/content/SelectedPressRelease?OpenDocument&UNID=6D8FA183431AED828525770D0053855E
MICROCAPITAL STORY: World Bank Group Publishes Online Database of Global Remittance Prices to Improve Price Transparency in Remittance Provision Markets: https://www.microcapital.org/microcapital-story-world-bank-group-publishes-online-database-of-global-remittance-prices-to-improve-price-transparency-in-remittance-provision-markets/
MicroCapital’s Microfinance Universe profile: World Bank Group
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