The Impact of Remittances on Developing Countries
The crisis that hit the western financial markets in 2008 has led to a severe global economic recession, which impacted and is still impacting migrants and migration policies worldwide. Despite the growing vulnerability of migrants, remittances have remained stable during and after the global economic downturn. Indeed, they continue to be a significant source of income for families and play a crucial role of co-insurance or risk mitigation in times of hardship. Moreover, remittances have proven to be a more sustainable source of foreign currency for developing countries than other capital inflows such as foreign direct investment, public debt or official development assistance. However, the nexus between remittances and development remains complex, especially with regards to the movement of people, which contributes to the spread of global interdependence at all levels – social, economic and political.
Study
External author
Karine Manyonga Kamuleta LUBAMBU (International Organization for Migration, Switzerland)
About this document
Publication type
Keyword
- ACP countries
- balance of payments
- capital transfer
- communications
- cooperation policy
- data collection
- developing countries
- development aid
- economic analysis
- economic conditions
- economic consequence
- economic geography
- ECONOMICS
- EDUCATION AND COMMUNICATIONS
- export of capital
- FINANCE
- financial institutions and credit
- financial legislation
- financial services
- financing and investment
- financing of aid
- foreign investment
- free movement of capital
- GEOGRAPHY
- impact study
- information technology and data processing
- INTERNATIONAL RELATIONS
- Internet site
- monetary relations
- national accounts
- poverty