The country survives on remittances and international economic aid.

But transfers from the African diaspora stand out as the most significant contributing factor.

Indeed, some countries are dependent on this income flow.

The decline in remittances, however, cuts both ways.

And no matter how much China publicizes its record in Africa, the greatest contributor of financial inflows to the continent is the African diaspora.

The economy continues to be bolstered by remittances of some 20 of the labour force that works abroad, mostly in Greece and Italy.

Offshore employment has steadily increased and, with it, remittances to the Territory.

Financial, technical and technological transfers still lag far behind.

In Latin America and the Caribbean, more than 50 million people are supported by remittances, and the numbers are even greater in Africa and Asia.

In a number of small developing countries, remittances contribute more than one third of GDP, and in a number of larger countries, annual receipts exceed 50 billion.

According to recent data, remittances have slowed or even fallen slightly.

Moreover, remittances from overseas Indians remain robust, rising from 46.4 billion in 2008 2009 to 57.8 billion in 2010 2011, with the bulk coming from the blue collar Indian expatriate community in the Gulf.

With balanced budgets everywhere, there would be no need for fiscal transfers.

Remittances by emigrants offer one of the richest.

In the near term, at least, cash transfers seem to be the best option.

A high priority should be given to increasing pro poor fiscal transfers.

But, in the developing world, it is just the opposite a decline in exports, reduced remittances, lower foreign direct investment, and precipitous falls in capital flows have led to economic weakening.

Following the credit bubble burst in 2008, fiscal transfers replaced these private financial flows, causing budget deficits to balloon.

Remittance income formed a big part of Yemen s budget.

It needs a mechanism for temporary transfers to countries that have put their public finances in order but are hit by adverse shocks.

However, conditional cash transfer programs have been quite successful in improving various human development indicators.

Remittances providing additional family income constitute further benefits of migration.

Table 2 Poverty status of households, by receipt or non receipt of remittances and sex of head of household

Indians abroad stayed loyal to India remittances from overseas Indians remained robust, reaching 46.4 billion in 2008 2009, the bulk of which came from the mainly blue collar Indian expatriate community in the Gulf countries.

Migration increases remittances to rural areas and strengthens market linkages between rural and urban areas.

How many transfers have in fact been frozen by banks after they have expressed doubts in relation to certain transactions?

The financial crisis has dealt a blow to remittances.

These new rules have certainly pushed transaction costs higher.

Remittances normally grow more than 15 a year, and will continue to do so.

In rural Pakistan, remittances are associated with higher school enrollment, especially for girls.

The World Bank's latest global economic outlook suggests remittances will fall by 5 to 8 this year.

Other countries, however, have taken steps to make remittance transfers possible via mobile phones.

But most families that rely on remittances operate outside of the world s financial system as well.

Fewer remittances flowing into Uganda could mean less economic activity or simply lower prices.

The possible impact can be gauged by looking at where the 300 billion in remittances are distributed. In 2006, poorer European countries received about 50 billion, Africa got 38 billion, Latin America and the Caribbean 68 billion, the Middle East 24 billion.

Later, Maurice Obstfeld pointed out that, in addition to fiscal transfers, a currency union needs clearly defined rules for the lender of last resort.

Most are for sums of only 100 300, and they normally go towards immediate household consumption.

Conditional cash transfers are another option for Latin American policy makers to consider.

In some States, those remittances constitute 65 per cent of all development assistance.

Remittances sent home by migrants exceeded 440 billion in 2010, with over two thirds of these flows going to developing countries.

In addition the freezing of the assets of Albarakat, the major banking institution, had impeded remittances and economic activity and had yet to be lifted.

Anti terrorism laws are a problem here, because the demand for more effective control mechanisms on international financial transfers places an extra burden on remittance operators.

The Germans fear that such innovations would lead to a rise in domestic borrowing costs, and to direct and indirect fiscal transfers to poorer countries.

An area in which there is little South South cooperation is that of dealing with remittances to developing countries from migrant populations.

CCT programs have subsequently been emulated by many countries in Latin America, Asia, and Africa.