Prof. Vaaler's Research on Migrant Remittances Featured in World Bank Policy Report

Professor Paul Vaaler's research on the venture investment impact of migrant remittances to developing countries has been featured in the World Bank's recently published Country Economic Memorandum (CEM) for the West African country of Guinea-Bissau. CEMs are diagnostic studies undertaken by World Bank professionals every 4-5 years to analyze constraints on and opportunities for institutional modernization and economic growth in some of the least-developed countries in the world. CEMs propose recommendations and options for modernization and growth to be implemented by country governments and supported with financial and technical assistance from the World Bank and other foreign aid donors. The new CEM for Guinea-Bissau features Vaaler's analysis of recent trends in migrant remittances to Guinea-Bissau and other less-developed countries and their impact on new business funding, founding and growth, particularly in countries with large informal (unobserved and or unregulated) economies. Vaaler's research documents the substantial positive economic development impact that migrant money and ideas can have in countries with legal and regulatory systems that deter other conventional foreign investors such as multinational firms. In 2014, migrant remittances to developing countries totaled more than $400 billion U.S. dollars, making remittances the largest foreign capital inflow to developing countries.