Reducing Transfer Costs: from the 2030 Agenda for Sustainable Development to a Tool for Validating the Economic Potential of the Diaspora

Abstract

Considering the current size of diasporas around the world, as well as their capacity to contribute to the economic development of the countries they come from, it becomes obvious that the financial contribution of the diaspora often considerably exceeds the economic possibilities of the state of origin. Under these conditions, more and more countries have become interested in capitalizing on and transforming the potential of the diaspora into a factor of sustainable economic development. With initiatives to boost remittance flows, challenges for diaspora members associated with high transfer costs have emerged internationally. Therefore, significantly reducing costs has become a goal of the 2030 Agenda for Sustainable Development, especially in the context of its goals related to poverty reduction and promoting financial inclusion. Thus, throughout this research, the author aims to treat the subject from the perspective of a holistic vision according to which reducing transfer costs represents one of the options through which the economic potential of the diaspora can be harnessed for the benefit of the countries of origin. CZU: [336.717.131:314.74]:338(478); JEL: F24, F63