Paper
Migrant Remittances to Developing Countries
Are remittances beneficial to developing countries?
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45 pages
This study aims to offer an introduction to remittances and their developmental contributions. The study draws on:
- Research by the author;
- Inputs from key informants on developmental and commercial initiatives around remittances.
It examines:
- Remittance flows;
- Channels and transaction costs;
- Related regulations and policies;
- Uses and developmental effects of remittances;
- Current trends;
- Donor interests.
The report finds that:
- Remittances constitute the fastest growing and most stable capital flow to developing countries;
- Official statistics neglect domestic as well as intra-regional remittance flows;
- Remittances contribute to the welfare and improved livelihood of the receiving household, and to informal lending;
- The benefits of remittances spill over into the local economy and community development projects;
- The overall benefits of remittances overweigh actual or potential drawbacks;
- There is a global recognition of the significant role of remittances in capital flows to developing countries;
- Donors have also become interested in the developmental aspects of remittances;
- Inefficiencies and access barriers hamper remittances and their investment in financial systems and services.
The paper concludes with the recommendation for a platform initiative that would bring together interested stakeholders for exchange, facilitation of linkages and development of good practices.
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