Wants to facilitate easier transfers from Norway to developing countries

Mr Solheim was presented with a report on remittances by immigrants in Norway to their countries of origin. The report has been prepared by the International Peace Research Institute, Oslo (PRIO), and was financed by the Ministry of Foreign Affairs and Norad. One of the report’s conclusions is that many immigrants have few options for transferring money to their countries of origin cheaply and efficiently.

-There are about 200 million migrants in the world. Their private remittances amount to three times as much as all international development assistance combined. These are enormous sums, which are important for development in many countries, said Mr Solheim.

In states with poorly developed infrastructure, there is often no banking system at all. This is particularly the case in Somalia and some parts of Iraq. It is therefore difficult for Norwegian Somalis and Iraqis to send urgently needed funds to their families and relatives in these countries. The lack of legal channels for transferring money to these countries has created a demand for hawala operators, who are not part of the legal remittance market.

The development impact of remittances is often greatest if they are deposited in a bank account. This helps the recipients to plan the use of the money, and can give them access to savings and credit services. In addition, as banks receive more deposits, it becomes easier for them to make loans to local entrepreneurs with good ideas.

PRIO has asked the Minister of International Development to consider introducing new legislation to ensure better services for immigrant communities in Norway that want to transfer money.

Mr Solheim wants to work with other ministries and government agencies to examine the best means of securing cheaper, more efficient and more transparent transfer mechanisms. The aim is to make the formal and legal channels so attractive that those who want to transfer money stop using the illegal channels.

PRIO also launched the website www.sendepenger.no today with a view to making the conclusions of the report available to as many people as possible.