Albania, the Republic of Moldova and Romania see
over 50 per cent of flows going to rural areas.
Migration
There are more than 30 million migrants from
European economies in transition worldwide.
On average, 9.5 per cent of the population has
migrated abroad to live and work. Some migrate
to Ukraine – one of the most populated countries in
Europe. Other destinations include Italy, the United
Kingdom and the United States. In Europe, the
Russian Federation is a major migrant-exporting
country, comprising 38 per cent of total migrants
from the region. Notably, it is also the main
destination country of migration from the
Commonwealth of Independent States.
Remittances
Remittances to Europe total over US$50 billion and
are sent to countries such as Albania, Poland, the
Republic of Moldova, Romania, the Russian
Federation and Ukraine – where remittances are
particularly significant. Annual transfers to Europe
amount to some US$1,600 per migrant and represent
4 per cent of GDP and 11 per cent of exports.
Remittances to the Republic of Moldova are also
of singular importance, as they represent more than
30 per cent of the country’s national income.
Rural remittances
Remittances to rural areas are received in a lower
proportion than in other places in the world.
However, in Eastern Europe the ratio of remittances
as a percentage of GDP is over 20 per cent in
countries with large rural populations. Some
countries, such as Albania, the Republic of Moldova
and Romania, see over 50 per cent of flows going
to rural areas.
Market and financial access
The market for money transfers is relatively
competitive for money flows to Poland, the Republic
of Moldova, Romania or the Russian Federation.
However, for some corridors, especially those
originating in Western European countries,
competition among MTOs is only now emerging,
and thus there are few vendors. Moreover, some
European migrants sending remittances from Western
European countries face a situation in which only
banks make money transfers. Remittances from Italy
and the United Kingdom to Poland, the Republic of
Moldova and Romania are more competitive and
cost-effective than flows from Switzerland to Serbia.
Financial access is also limited. There is little commensurability between the percentage of banks paying remittances and the percentage of recipients opening bank accounts at those same institutions. Moldovan remittance recipients, for example, exclusively cash their remittances at banks, yet fewer than 20 per cent have bank accounts. However, a larger percentage save informally in quantities amounting to over US$1,500.
Source: IFAD
