Ways To Reduce Ways To Reduce DisparitiesDisparities

By: Isabel Loontiens and Eugene By: Isabel Loontiens and Eugene LingLing12A12A

Wealth DisparityWealth Disparity

RemittancesRemittances

Remittance is a transfer of money Remittance is a transfer of money by a foreign worker to his or her by a foreign worker to his or her

home country.home country.

Migrant Workers

Financial Intermediaries (Formal and

Informal)

Recipients

Government

Send money Transfer

funds to households

Regulates and sets policy

Remittances- AdvantagesRemittances- Advantages

Expand Household’s Monetary ResourcesExpand Household’s Monetary Resources Improvement in Standard of LivingImprovement in Standard of Living Increase Consumption Increase Consumption Multiplier Effect Multiplier Effect Opportunities for Investment Opportunities for Investment Growth of Growth of

Domestic MarketDomestic Market

Remittances- Remittances- DisadvantagesDisadvantages

In Africa, the restrictive laws and In Africa, the restrictive laws and costly fees hamper the power of costly fees hamper the power of remittances.remittances.

Trade and Market Access Trade and Market Access IntroductionIntroduction

The unfair trading patterns are one of thThe unfair trading patterns are one of the causes of the development gape causes of the development gap

MEDCs- 75% of world’s exportMEDCs- 75% of world’s export - 80% of manufactured exports.- 80% of manufactured exports.

Africa accounts for a 1-2% of world trade.Africa accounts for a 1-2% of world trade. LOTS OF POTENTIALLOTS OF POTENTIAL

Trade and Market Access- Trade and Market Access- DisadvantagesDisadvantages

OECD trade distorting subsidies OECD trade distorting subsidies would be abolished or ameliorated so would be abolished or ameliorated so as not to harm or impede African as not to harm or impede African producersproducers

No negotiating strengthNo negotiating strength Africa has too little to sellAfrica has too little to sell

– Inferior qualityInferior quality