Remittances have a number of economic and socio-political benefits relevant to development. We have analysed the range of
direct, indirect, micro and macro-economic benefits, but have also identified the negative effects inherent in diaspora and
migrant remittances. Consequently, we have designed a scheme (i.e. RemitAid™), which mitigates the negative impacts and
structural imperfections, whilst optimising the positive impacts of remittances. RemitAid™ proposes that actual remittances sent
to Less Developed Countries (LDCs) for activities falling within Millennium Development Goals (MDGs) and charitable activities,
should trigger government co-funding in OECD countries. The co-funding can be in the form of match funding and/or
community (i.e. pooled) tax rebates – managed by a new agency RemitAid™ Development Fund (RDF). The funds shall be
treated as endowment capital to generate income for grants and investment in diaspora and development activities in LDCs.
