DUSHANBE, December 12, 2008, Asia-Plus — As the world”s rich economies sink into recession, the flow of remittances into developing countries is expected to see a corresponding decrease, the December 8 “Business New Europe” item titled “Falling remittances to hit CIS” noted, referring to the Organization for Economic Development and Cooperation (OECD).
The article says that in the CIS countries that rely heavily on payments from migrant workers abroad, the effect could be highly damaging. The construction and consumer-related sectors are expected to be particularly badly hit.
The OECD forecasts a drop of 6% in remittance payments to developing countries from their nationals working abroad in 2009. CIS countries are among the largest recipients of remittance payments measured in comparison to their GDP. The Remittances Factbook 2008, published by the World Bank, finds that Tajikistan and Moldova are tied as the top remittance receiving countries – remittance inflows amount to 36% of their GDP.
There are already signs the flow of money into the CIS” poorer economies is tailing off as the US and West European economies suffer from the second wave of the credit crisis, while the previously strong growth in Russia and Kazakhstan dissipates – forecasts for 2009 are 3% and 2.7-4.1% respectively, the article said.
Established on September 1 1961, OECD, with headquarters in Paris, brings together the governments of countries committed to democracy and the market economy from around the world to: support sustainable economic growth; boost employment; raise living standards; maintain financial stability; assist other countries” economic development; and contribute to growth in world trade.
OECD also shares expertise and exchanges views with more than 100 other countries and economies. For more than 40 years, OECD has been one of the world”s largest and most reliable sources of comparable statistics, and economic and social data. As well as collecting data, OECD monitors trends, analyses and forecasts economic developments and researches social changes or evolving patterns in trade, environment, agriculture, technology, taxation and more. The Organization provides a setting where governments compare policy experiences, seek answers to common problems, identify good practice and coordinate domestic and international policies.
