Publication:
Remittances: Development Impact and Future Prospects

Loading...
Thumbnail Image
Files in English
English PDF (1.97 MB)
12,661 downloads
English Text (1019.45 KB)
9,085 downloads
Published
2005
ISSN
Date
2012-06-06
Abstract
Remittances explores policy options for enhancing the poverty alleviation impact of remittance money in recipient countries, and addressees concerns about increasing migration and inequality. It looks at new technologies that allow remittance service providers to reduce direct transaction costs and open new channels, enhancing convenience for remitters and improving levels of transparency and accountability for regulators and policy makers. Importantly, it also establishes a baseline for further research and collaborative effort, showing the areas where the international financial institutions, particularly the World Bank, can add value to enhance the positive impact of remittance flows and minimize less welcome effects.
Link to Data Set
Citation
Maimbo, Samuel Munzele; Ratha, Dilip. Maimbo, Samuel Munzele; Ratha, Dilip, editors. 2005. Remittances: Development Impact and Future Prospects. © World Bank. http://hdl.handle.net/10986/7339 License: CC BY 3.0 IGO.
Associated URLs
Associated content
Report Series
Other publications in this report series
Journal
Journal Volume
Journal Issue

Related items

Showing items related by metadata.

  • Publication
    Migrant Labor Remittances in South Asia
    (Washington, DC: World Bank, 2005) Adams, Richard H. Jr.; Maimbo, Samuel Munzele; Aggarwal, Reena; Passas, Nikos
    This paper provides a strategic overview of key issues relating to the remittance industry in the South Asia region. The paper builds on recent research on remittances that prominently features the South Asia region. Rather than duplicate that work, this study focuses only on the region's distinguishing characteristics, namely: a large migrant population of semiskilled and unskilled workers largely concentrated in the Persian Gulf countries, particularly Saudi Arabia and the United Arab Emirates, contributing to rising remittance flows; the presence of dedicated public institutions and government financial incentives aimed at facilitating and providing support for temporary migration and remittance inflows; the existence of large state bank branch networks with immense potential for a more effective and efficient remittance financial market; and the widespread use of trade-related informal remittance channels by both legal and illegal migrants.
  • Publication
    Global Economic Prospects 2006 : Economic Implications of Remittances and Migration
    (Washington, DC: World Bank, 2005-11) World Bank
    The themes of the 2006 Global Economic Prospects (GEP) are international remittances and migration, their economic consequences, and how policies can increase their role in reducing poverty. The GEP explores the gains and losses from international migration from the perspective of developing countries, with special attention to the money that migrants send home. The report also considers policy initiatives that could improve the developmental impact of migration, with particular attention to remittances. The first chapter reviews recent developments in and prospects for the global economy and their implications for developing countries. Chapter 2 uses a model-based simulation to evaluate the potential global welfare gains and distributional impact from an increase in high-income countries' labor force caused by migration from developing countries. Chapter 3 surveys the economic literature on the benefits and costs of migration for migrants and their countries of origin. Chapter 4 investigates the size of remittance flows to developing countries, the use of formal and informal channels, the role of government policies in improving the development impact of remittances, and, their macroeconomic impact. Chapter 5 addresses the impact of remittances at the household level. The last chapter investigates policy measures that could lower the cost of remittance transactions for poor households and measures to strengthen the financial infrastructure supporting remittances.
  • Publication
    South-South Migration and Remittances
    (Washington, DC: World Bank, 2007) Shaw, William; Ratha, Dilip
    South-South Migration and Remittances reports on preliminary results from an ongoing effort to improve data on bilateral migration stocks. It sets out some working hypotheses on the determinants and socioeconomic implications of South-South migration. Contrary to popular perception that migration is mostly a South-North phenomenon, South-South migration is large. Available data from national censuses suggest that nearly half of the migrants from developing countries reside in other developing countries. Almost 80 percent of South-South migration takes place between countries with contiguous borders. Estimates of South-South remittances range from 9 to 30 percent of developing countries' remittance receipts in 2005. Although the impact of South-South migration on the income of migrants and natives is smaller than for South-North migration, small increases in income can have substantial welfare implications for the poor. The costs of South-South remittances are even higher than those of North-South remittances. These findings suggest that policymakers should pay attention to the complex challenges that developing countries face not only as countries of origin, but also as countries of destination.
  • Publication
    Sri Lanka's Migrant Labor Remittances : Enhancing the Quality and Outreach of the Rural Remittance Infrastructure
    (World Bank, Washington, DC, 2005-12) Lasagabaster, Esperanza; Maimbo, Samuel Munzele; Hulugalle, Sriyani
    Remittances-money sent home by immigrant workers abroad-are hugely beneficial to Sri Lanka. Migrants' remittances have grown dramatically in recent years and are now estimated at US$1.5 billion annually. This national phenomenon is consistent with remittance trends in neighboring countries where remittance flows are growing as rapidly. The trend is likely to continue as many workers continue to look abroad for the chance to make a better living. The economic policy implications of these trends are significant. The Sri Lankan Central Bank is now debating the following key issues: the developmental impact of remittances; the high transaction costs associated with remittances; and the level of transparency and accountability in the remittance industry, especially the informal remittance sector. This paper highlights the key policy issues associated with each of these aspects of remittances with the objective of improving the public and private infrastructure for current and future flows. Building on recent World Bank research on remittances that prominently features South Asia, it has been prepared in recognition of the development potential of these flows. It discusses some of the key issues relating to the remittance industry in Sri Lanka. This paper complements the existing literature on migrant labor remittances to Sri Lanka and extends that literature by providing specific policy-relevant guidance on short and long-term policies for enhance enhancing the quality and outreach of rural remittance infrastructure.
  • Publication
    Remittances and Natural Disasters : Ex-post Response and Contribution to Ex-ante Preparedness
    (2009-06-01) Mohapatra, Sanket; Joseph, George; Ratha, Dilip
    Macro- and micro-economic evidence suggests a positive role of remittances in preparing households against natural disasters and in coping with the loss afterwards. Analysis of cross-country macroeconomic data shows that remittances increase in the aftermath of natural disasters in countries that have a larger number of migrants abroad. Analysis of household survey data in Bangladesh shows that per capita consumption was higher in remittance-receiving households than in others after the 1998 flood. Ethiopian households that receive international remittances seem to rely more on cash reserves and less on selling household assets or livestock to cope with drought. In Burkina Faso and Ghana, international remittance-receiving households, especially those receiving remittances from high-income developed countries, tend to have housing built of concrete rather than mud and greater access to communication equipment, suggesting that they are better prepared against natural disasters.

Users also downloaded

Showing related downloaded files

  • Publication
    Environmental, Social, and Governance Investing
    (World Bank, Washington, DC, 2021-03-01) Bouye, Eric; Klingebiel, Daniela; Ruiz, Marco
    This primer responds to central banks’ growing demand for knowledge on social, governance, and environmental considerations (ESG) in the investment process. This area has gained traction in the last two decades. More recently, central banks’ interest in ESG has increased, but much of the information available is aimed at investors with different investment objectives and broadly diversified portfolios. The authors fill that information gap by reviewing the definitions of ESG and the main ESG investment approaches, including their applicability to asset classes. The authors then examine how foreign reserve managers can apply ESG investing in their reserve management operations. The authors find limited scope for implementing ESG strategies in reserve management, given that most central banks still invest primarily in sovereign bonds of major economies. Yet, the authors also identify opportunities and critical considerations for central banks interested in implementing ESG investing in their reserve management operations.
  • Publication
    Corporate Governance of State-Owned Enterprises : A Toolkit
    (Washington, DC, 2014-10-04) World Bank Group
    This Toolkit provides an overall framework with practical tools and information to help policymakers design and implement corporate governance reforms for state-owned enterprises. It covers the key elements of corporate governance, including legal and regulatory framework, state ownership arrangements, performance management systems, financial and fiscal discipline, boards of directors, transparency and disclosure, and protection of shareholders in mixed ownership companies. Experience shows that no one approach is universally applicable and the choice of measures depends on country and enterprise circumstances. The Toolkit thus provides a range of frameworks, concepts, case examples, checklists, and model documents that together aim to help government officials make the appropriate choices for their circumstances. The Toolkit concludes with guidance on managing the reform process, in particular how to prioritize and sequence reforms, build capacity, and engage with stakeholders.
  • Publication
    Digital Progress and Trends Report 2023
    (Washington, DC: World Bank, 2024-03-05) World Bank
    Digitalization is the transformational opportunity of our time. The digital sector has become a powerhouse of innovation, economic growth, and job creation. Value added in the IT services sector grew at 8 percent annually during 2000–22, nearly twice as fast as the global economy. Employment growth in IT services reached 7 percent annually, six times higher than total employment growth. The diffusion and adoption of digital technologies are just as critical as their invention. Digital uptake has accelerated since the COVID-19 pandemic, with 1.5 billion new internet users added from 2018 to 2022. The share of firms investing in digital solutions around the world has more than doubled from 2020 to 2022. Low-income countries, vulnerable populations, and small firms, however, have been falling behind, while transformative digital innovations such as artificial intelligence (AI) have been accelerating in higher-income countries. Although more than 90 percent of the population in high-income countries was online in 2022, only one in four people in low-income countries used the internet, and the speed of their connection was typically only a small fraction of that in wealthier countries. As businesses in technologically advanced countries integrate generative AI into their products and services, less than half of the businesses in many low- and middle-income countries have an internet connection. The growing digital divide is exacerbating the poverty and productivity gaps between richer and poorer economies. The Digital Progress and Trends Report series will track global digitalization progress and highlight policy trends, debates, and implications for low- and middle-income countries. The series adds to the global efforts to study the progress and trends of digitalization in two main ways: · By compiling, curating, and analyzing data from diverse sources to present a comprehensive picture of digitalization in low- and middle-income countries, including in-depth analyses on understudied topics. · By developing insights on policy opportunities, challenges, and debates and reflecting the perspectives of various stakeholders and the World Bank’s operational experiences. This report, the first in the series, aims to inform evidence-based policy making and motivate action among internal and external audiences and stakeholders. The report will bring global attention to high-performing countries that have valuable experience to share as well as to areas where efforts will need to be redoubled.
  • Publication
    Global Economic Prospects, January 2025
    (Washington, DC: World Bank, 2025-01-16) World Bank
    Global growth is expected to hold steady at 2.7 percent in 2025-26. However, the global economy appears to be settling at a low growth rate that will be insufficient to foster sustained economic development—with the possibility of further headwinds from heightened policy uncertainty and adverse trade policy shifts, geopolitical tensions, persistent inflation, and climate-related natural disasters. Against this backdrop, emerging market and developing economies are set to enter the second quarter of the twenty-first century with per capita incomes on a trajectory that implies substantially slower catch-up toward advanced-economy living standards than they previously experienced. Without course corrections, most low-income countries are unlikely to graduate to middle-income status by the middle of the century. Policy action at both global and national levels is needed to foster a more favorable external environment, enhance macroeconomic stability, reduce structural constraints, address the effects of climate change, and thus accelerate long-term growth and development.
  • Publication
    Empowerment in Practice : From Analysis to Implementation
    (Washington, DC: World Bank, 2006) Alsop, Ruth; Bertelsen, Mette; Holland, Jeremy
    This book represents an effort to present an easily accessible framework to readers, especially those for whom empowerment remains a puzzling development concern, conceptually and in application. The book is divided into two parts. Part 1 explains how the empowerment framework can be used for understanding, measuring, monitoring, and operationalizing empowerment policy and practice. Part 2 presents summaries of each of the five country studies, using them to discuss how the empowerment framework can be applied in very different country and sector contexts and what lessons can be learned from these test cases. While this book can offer only a limited empirical basis for the positive association between empowerment and development outcomes, it does add to the body of work supporting the existence of such a relationship. Perhaps more importantly, it also provides a framework for future research to test the association and to prioritize practical interventions seeking to empower individuals and groups.