SPECIAL SUMMIT OF THE AMERICAS

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REMITTANCES

When, where and who:

" We recognize that remittances are an important source of capital in many countries of the Hemisphere. We commit to take concrete actions to promote the establishment, as soon as possible, of necessary conditions, in order to achieve the goal of reducing by at least half the regional average cost of these transfers no later than 2008 and report on progress achieved at the next Summit of the Americas in Argentina in 2005. We will adopt, as needed or appropriate, measures such as: the promotion of competition between the providers of these services, the elimination of regulatory obstacles and other restrictive measures that affect the cost of these transfers, as well as the use of new technologies, while maintaining effective financial oversight.” Declaration of Nuevo Leon

The Special Summit of the Americas was held in Monterrey, Mexico on January 12-13, 2004 bringing together the democratically elected Heads of State and Government of the members countries of the Organization of American States.

Purpose :

The goal of the Special Summit was to facilitate hemispheric cooperation at the highest level of government in order to address current economic, social and political challenges in the region. Approximately one third of Heads of State and Government in the Hemisphere have assumed office since the Third Summit of the Americas held in Quebec City in April 2001. The agenda of the Special Summit focused on three issues:

Ø Economic Growth with Equity to Reduce Poverty

Ø Social Development

Ø Democratic Governance

The Declaration of Nuevo Leon:

The Declaration contains 75 paragraphs reflecting the policies and decisions adopted by the leaders on the three Summit topics. For example, in economic growth, they made a commitment to implement sound macroeconomic policies, to create an enabling environment for the private sector, and to reduce the costs of remittances. In the area of social development, the Heads of State recognized that the main challenge is the elimination of poverty, hunger, and inequality. They reiterated that a decisive factor for human development is education and also committed to taking the appropriate measures to reduce the threat of HIV/AIDS. In the area of democratic governance, the leaders of the Americas expressed their support for the Declaration of Santiago on Democracy and Citizens Confidence, as well as their respect for the rule of law, strengthening political parties, and defending human rights. They also committed to fight corruption and acknowledged the role of civil society in the design, execution, and evaluation of public policies.

Remittances in the Americas Cost of Transfers

Source: Manuel Orozco, Volume and Price in Latin America 2003

Over the last decade, the size of remittances has doubled in the region, Latin America receives nearly one-third of the global flow of remittances as the top receiving area in the world. According to the IDB "for 2003, LAC remittances reached over US$ 38 billion, exceeding the combined flows of all Foreign Direct Investment (FDI) and net Official Development Assistance (ODA)". Remittances are important for the Hemisphere, especially for Central America where one of every four adults receives remittance money. Taking this into account, the Leaders of the Americas, gathered at the recent Special Summit, which took place in Monterrey, México on January 12-13, 2004, committed to eliminate the obstacles that affect the cost of the transfers and reduce by at least half the average cost of these transfers by 2008.