Mono 112.indd

This conclusion section of a research paper examines the economic and political role of diasporas and remittances in Africa and other micro-states, highlighting the tension between the survival necessity of remittances and their potential for misuse in money laundering or funding criminal activities.

• Micro-states lacking natural resources, including island nations in the Pacific, Caribbean, and Africa, may offer their territory to any paying entity, including criminal organizations, through free-trade zones and offshore banking. While Mauritius and the Seychelles have the infrastructure for legitimate financial services, others, such as Somalia with its 2003 Somali International Financial Centre in Mogadishu, have failed in similar attempts.
• There is a critical dilemma regarding informal private transfers from migrant communities: while they can be used for money laundering or funding terrorism, cracking down on these remittances can trigger economic crises, fuel black markets, and push failed states toward crime or war.
• Remittances provide a vital survival mechanism in countries with widespread poverty, but they are not a substitute for foreign direct investment and are often spent on non-productive consumption rather than industrial or agricultural development.
• Diasporas act as significant vectors for technology transfers and modernization, though their ability to influence government policy or coordinate democratic transitions against authoritarian regimes is limited.

APA

Institute for Security Studies (n.d.). Mono 112.indd. https://issafrica.s3.amazonaws.com/site/uploads/112CONCLU.PDF

Chicago

Institute for Security Studies. Mono 112.indd. n.d. https://issafrica.s3.amazonaws.com/site/uploads/112CONCLU.PDF.

Wikipedia

{{cite report |author=Institute for Security Studies |title= Mono 112.indd |url=https://issafrica.s3.amazonaws.com/site/uploads/112CONCLU.PDF |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{instituteforsecuritystudiesndmono, author = {{Institute for Security Studies}}, title = {{ Mono 112.indd}}, institution = {Institute for Security Studies}, url = {https://issafrica.s3.amazonaws.com/site/uploads/112CONCLU.PDF}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }