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<br />001457 <br /> <br />. <br /> <br />Action Plan <br />Expanding and Broadening Access to Capital <br /> <br />Remittances - Lowering the Cost of Sending Money Home <br /> <br />. The Partnership will work to lower the Fargo, Bancomer, and the Border Federal <br />cost to.. Mexicans working in the, United Credit Union, have already contributed to <br />States of sending money home by, in lowering the cost of.. remittances from the <br />part, encouraging more banks to market U.S. to Mexico. <br />aggressively the opening of accounts to <br />Mexican workers and offer remittance <br />features in .their accounts. . For example, <br />the U.S. Treasury's First Accounts and <br />Financial Literacy programs will <br />introduce more people to the use of <br />formal fimmcial institutions; such as <br />banks and credit unions, where the. cost <br />of sending money is less. Private-:-sector <br />initiatives, such as the $10 charge to <br />transfer money now being offered by <br />several institutions including Wells <br /> <br />A. <br /> <br />"Most funds for developmentdo not come <br />from international aid-- they come from <br />domestic capital, from foreign investment, <br />and especially from trade, " <br /> <br />President George W Bush <br /> <br />Expanding and broadening access to capital <br />in Mexico is a critical component of the <br />Partnership's growth-promotion. strategy. <br />Though Mexico has been remarkably <br />successful at attracting ..investnient, . a <br />substantial portion of capital has <br />_ trJlgiti.91J~Jy-,ll.9wed to iust a handful of <br />regions. For example, 95 percent of all <br />foreign direct investment channeled into <br />Mexico in the second half of the' 1990s was <br /> <br />. <br /> <br />. <br /> <br />funneled to just nine states (mostly along the <br />U.S....,Mexican border) and the Federal <br />District. The remainder was spread among <br />the other 22 states. A primary goal of the <br />Par41ership is to remove obstacles that <br />prevent capital from flowing freely to all <br />parts. of Mexico, particularly those areas that <br />are less developed. These initiatives focus <br />on improving Mexican entrepreneurs' and <br />farmers' access to new and existing sources <br />of capital on more competitive terms by <br />broadening the. array of financing options <br />available.. These initiatives also seek to <br />enhance. understanding of. the financial <br />... .-systeiiiaIid- eqmp. citfzensWitli tlie loofsThey - - <br />need to make good economic choices. <br /> <br />Remittances (in billions of U.S. Dollars) <br /> <br />$10 <br />$8 <br />$6 <br />$4 <br />$2 <br />$0 <br /> <br /> <br />1997 <br /> <br />1998 <br /> <br />1999 <br /> <br />2000 <br /> <br />2001 <br /> <br />3 <br />