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    Posted June 12, 2012 by
    mocacity
    Location
    Santo Domingo

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    Remittances sent by immigrants reduce poverty in Haiti

     
    The remittances sent by Haitian migrants residing in the country contribute to the reduction of the poverty rate in Haiti by 0.7% according to a study carried out by a group of experts from the World Bank.

    Nonetheless, the research establishes that the effects of the remittances coming from the country are limited "by the particularly low propensity of the Haitian immigrants to send their money to their homes, which could be an indication of important restrictions on sending money from the Dominican Republic."

    In the study "Haiti, Dominican Republic: More than the sum of its parts" carried out by the World Bank, at the request of the Ministry of the Economy, Planning and Development, and recently published, it is shown that the average Haitian migrant sends just about 5% of the amount his compatriot does from the United States.

    In the investigation they talk about the fact that while it is true that the remittances coming from this side of the island constitute a smaller proportion in total, in comparison with the United States, they have a greater possibility of reducing the poverty rate because they benefit, mainly, homes of very low income in the rural areas.

    The study indicates that the Dominican Republic is in second place behind the United States as a source of remittances to Haiti, which contributes 11% of the total received and that the proportion of poor homes implies that its impact on poverty "is slightly more important that might be expected given the participation of these remittances in total." The World Bank experts added that the empirical data suggest that the Haitian homes that receive remittances have more probabilities of sending their children to school and of controlling their health with more regular visits to doctors.

    According to estimates regarding the basis of the Survey of Life in Haiti, the remittances coming from the DR reduce the incidence of poverty in Haitis by 0.7%, while those from the United States reduce it by 1.9%.

    Among the measures suggested in the study to reduce the restriction on the transaction of sending remittances to the neighboring country are the establishment of dispositions that reduce the financial costs of transferring money, increasing the competition in the service sector and carry out an deeper analysis, based on surveys carried out on the ground and aimed at identifying and proposing solutions to the stumbling blocks for sending money from the Dominican Republic to Haiti.

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