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People have some opinions on the fees migrants pay to send money to their families

UNESCO thinks financial companies are taking too big a cut of the £8 billion UK migrants send abroad to their families each year.

What it means: Most migrant workers are low paid by UK standards (25 percent of them earn the minimum wage, compared to just 14 percent of Brits). But even the UK minimum wage is often significantly higher than what they could earn back in their native countries. So the money these workers send back can often make a big difference to their left-behind family’s quality of life. In particular, it can be used to ensure kids receive a good education.

The more educated someone is, the more money they tend to earn (an extra 10 percent salary rise for every year of school, according to the World Bank.) Especially in poorer countries, that tends to be good news for both individuals and their economies. People on higher wages pay more tax, so governments get more money to spend on roads and police officers and other stuff people like. They can also buy more things, helping to support local businesses and aid job creation. And better-educated workers also have the skills and training to do higher-value work or come up with new ideas and innovations.

Because of these benefits, UNESCO (yes, them of the heritage sites, but they also do stuff around promoting global human rights, freedom and fairness) has criticised finance companies for putting large charges on money transferred abroad. It says that the average fees eat up 7 percent of the money sent, and recommends they should be dropped to just 3 percent.

But a representative of the financial companies said the problem is that the financial sector is too heavily regulated (i.e. controlled by the government) which stops new businesses wanting to set up shop. They think that with a bit more competition, fee prices would fall of their own accord. (Some might say they just don’t want governments to force them to lower fees).

Read our explainers on immigration and the financial system.

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Reader Comments

  • WhereAreTheVikings

    What a terrible, terrible shame. Western Civilization nurtured capitalism, and now capitalism is destroying it. And these young people seem to welcome the invasion of their homeland. The media and schools have been very efficient in wiping out all traces of blood and soil.

    • prollawalllynotahumanoid

      Capitalism isn’t the problem. It’s corrupt politicians taking bribes and kickbacks from Globalists and the Chinese.

      • WhereAreTheVikings

        Maybe I should have said crony capitalism. Although Italians importing Chinese to make “Italian leather” shoes is not crony capitalism. It is capitalism, pure and simple.

        • prollawalllynotahumanoid

          That would be crony capitalism and globalism combined. They aren’t concerned with the affect their policies have upon their citizens, the health and welfare of their society and culture or their economy. What it isn’t is fair-free trade to further national interests.

          • WhereAreTheVikings

            I’ve always seen them as one and the same, but perhaps they need to be named individually, just to bring home the point.

      • WhereAreTheVikings

        But now that travel is so easy and borders are virtually down through H1bs and the like, theoretically you can’t blame capitalists for the pursuit of cheaper labor, although I do heartily blame them not being more patriotic than that. Perhaps the emerging nationalism will force them to voluntarily do what they should have morally been doing all along, and that is employing business practices that preserve their countries and nationalities. The government should be doing everything it can to encourage that, to the extent that small government should do anything but guard the borders and strictly, drastically, limit immigration.

      • Henry Lam

        It is China with its corrupted mindset affecting the world.

        • prollawalllynotahumanoid

          No it is not. Capitalism is the fairest and least corrupt system of all.

          Socialism and communism is based on authoritarianism, coercion and police intimidation. It has and always will be rife with criminality, bribes and kickbacks.

          Corruption can be anywhere but it is the very basis of socialism and communism.

    • Henry Lam

      The government is too weak. They do not understand the mindset of communists and how they educate their people. Those communist people are only loyal to their country and could be dangerous. The immigration law should only accept those who accepted multiculturalism and taught from a democratic education system. This virus events clearly has shown how stupid to take China as a friend.

      • WhereAreTheVikings

        The government is not too weak. Just weak-minded about some things.

  • Gabi Rodrigues

    For how many days can a country maximum close their borders to foreigners maximum? Like now, with the virus, everyone is using 30 days. Can it be more?