Epistemic Challenges in the Studies of Remittances: Denomination and Ostensive Definition in the Exploratory Research on Informal Value Transfer System

There are certain areas of study in which researchers deal with and even create a plethora of terms. The Informal Transfer of Values Systems (IVTS) are one of these areas. There are many terms available in the lexicon of research on IVTS around the world, such as hawala, hundi, fei ch’ien, encomenderos etc. The informal remittance system, typical of Venezuelan migration, appears to be located in the grey zone between the large irregular money transfer markets and the modest, informal systems allowing money transfers to people who are struggling in their countries. That is why it is important that Venezuela’s IVTS receive a unique label. In search of an appropriate label that reflects the peculiarities of Venezuela’s IVTS, it is important to pay attention to the linguistic aspects that come with the epistemological challenges. Almost a century ago, the philosopher Ludwig Wittgenstein highlighted the importance of the ostensive definition to make sense of the words we use ordinarily. Without neglecting his epistemological warnings, this article argues that migration studies have advanced in expanding their own terminology, in a relatively consistent way with the Wittgensteinian linguistic approach.

“Underground banking” and Myanmar’s changing hundi system

Purpose The purpose of this paper is to examine Myanmar’s “hundi” system, an informal value transfer system used widely by local Myanmar citizens and offshore migrant workers to remit money domestically and internationally. Due to historically stringent banking and foreign exchange controls and a lack of domestic and internationally linked financial services, the system grew to become the dominant medium for remittances in Myanmar. It also remains unregulated despite authorities acknowledging its use in criminal and terrorist activity. However, with an expanding and modernising financial sector, there is now increasing competition and challenges facing Myanmar’s hundi system. Design/methodology/approach This paper draws on available literature and open source reporting, as well as interviews with former Myanmar Police Force officials. Findings This study provides a unique insight into Myanmar’s hundi system, its history and the challenges it faces. The once dominant system remains a known anti-money laundering and countering the financing of terrorism (AML/CFT) risk and is having to compete with an expanding and modernising formal banking sector and the introduction of fintech and mobile money services. In the short term, these are unlikely to eliminate the hundi system completely, but may instead push hundi operators towards adopting these networks and technologies in their own operations. Originality/value Myanmar remains a very under-researched area and there has been a limited focus on its informal hundi remittance system and related AML/CFT issues. This paper will be a useful source for academics, development professionals, policymakers, law enforcement agencies and private sector actors seeking to understand Myanmar’s informal remittance system.

Stability in the informal value transfer systems: norms of trust or institutions of control?

Informal financial operations exist in the shadow of official regulation and cannot be protected by the formal legal instruments, therefore raising concerns about the enforcement of obligations taken by their participants. This paper analyzes two alternative types of auxiliary institutions, which can coordinate expectations of the members of informal value transfer systems, namely attitudes of trust and norms of social control. It offers some preliminary approaches to creating a game-theoretic model of partner interaction in the informal value transfer system. It also sheds light on the perspectives of further studies in this area of institutional economics.