European Parliament - The impacts of remittances in 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.
- Remittances and financial sector development