Remittances

Remittances are transfers of money by foreign workers to their home countries. Money sent home by migrants constitutes the second largest financial inflow to many developing countries, frequently exceeding international aid.

Key Facts

The World Bank estimated approximately $250 billion (USD) in remittance transfers in 2005, increasing at a rate of about 30% annually
In Latin America and the Caribbean, remittances totaled over $60 billion (USD) in 2006, with about 75% originating in the United States. This represents more than the sum of foreign direct investment and official development aid combined.
Recent studies by the U.K.'s Overseas Development Institute have shown that remittances not only play an important part in many people's daily lives but are particularly important for people during crises.
As remittance receivers often have a higher propensity to own a bank account, remittances promote access to financial services for the sender and recipient, an essential aspect of leveraging these resources to promote economic development.

Our Response

PPAF is engaged in preliminary work with various organizations to further the understanding of the flow of remittances by migrants including their potential for a strong impact on community development, especially in poor communities. PPAF board members were instrumental in organizing the Regional Consultation on Migration, Remittances and Development in Latin America and the Caribbean, held in the Dominican Republic in July 2006. The Dominican Government submitted results to the UN General Assembly, see Document A/61/343 below in pdf format.

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"The United Nations can only do its job properly with partners. We will need to forge even closer ties to civil society groups, foundations, academic institutions, the media, labour unions, and the private sector. Each has unique contributions to make."

-Ban Ki-moon
UN Secretary-General,
Address to UNA-USA Business Council
for the UN,
New York, 10 January 2007

Public-Private Alliance Foundation Tel: 914-478-3450 Fax: 914-478-7859 ppafoundation@gmail.com