Importance of remittances.

 


Over the past decade, migrants have sent US$5 trillion in remittances to low- and middle-income countries (LMICs), exceeding official development assistance and equalling foreign direct investment. More than one-third of these funds have reached rural areas, where they count the most. By 2030, an estimated US$4.4 trillion in additional remittances will flow to LMICs; But behind the global numbers are individual remittances of US$200 or $300 that migrants send home regularly, so that their families can buy food, pay for housing, and meet necessary expenses.

Remittance services are now much quicker and less expensive thanks to digital technologies. However, the cost of transferring US$200 across international boundaries is still high. Less than 20 years ago, remittances were literally unaccounted for, and the contributions of migrant workers remained unrecognized – though not to their families. But for the development community, it has been a gradual realization that remittances are a potentially powerful tool. 

Documentation of the scale and scope of remittances has been key in building this consensus.




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