Prof. Vaaler Writes Letter to Economist Editor on Regulation of Migrant Remittances

Professor Paul Vaaler commented on the Economist magazine's Sept. 5, 2015, article analyzing the recent decrease of migrant remittances to many less-developed countries (e.g., Somalia) after imposition of stringent regulations by developed countries (e.g., United States) intended to decrease money-laundering and the financing of terrorist organizations. Vaaler points out that stringent remittance regulation not only chokes off remittances vital to household subsistence, but also constrains growth in new businesses vital to private sector-led economic development and poverty reduction. Vaaler notes his recent study for the World Bank documenting when and how much remittances support new business starts in less-developed countries.