Jeju (South Korea), May 16: The United States today urged the Asian Development Bank to play a role in catalysing the billions of dollars remitted by foreign workers to their home countries in Asia.
"Remittance flows can also benefit from novel financing services," said John Taylor, the US Department of Treasury undersecretary for international affairs, in an address to the ADB meeting here.
He said nearly 30 billion dollars in remittances flowed to Asia in 2002, most of them to poor families with relatives working abroad.
"Adb has an important role to play in catalyzing remittance flows and increase their cost-effectiveness," he said. Foreign remittances form a huge portion of foreign exchange inflows in several Asian countries with large deployments of workers overseas such as India, the Philippines, Sri Lanka, Indonesia and China.
< BR>
Taylor said a pilot project had been rolled out in the Philippines under the Asia Pacific Economic Cooperation (APEC) forum. The project will be discussed in Tokyo next month.

< BR>
"We hope the ADB will continue to resource these important initiatives and apply lessons learned to other countries in the region," he said.

< BR>
In the Philippines alone, remittances average about eight billion dollars annually, with a substantial portion sent through non-banking sources such as door-to-door deliveries.

< BR> Bureau Report