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  • Publication | 2022

The role of remittances in promoting sustainable development

Global Food and Nutrition Security

International remittance flows have proven their resilience through the COVID-19 pandemic-induced economic crisis in spite of initial expectations forecasting their decline and associated devastating consequences for development in recipient communities and countries. This calls for some reflection on the nature and behaviour of these flows, with a particular focus on aspects that might explain their counter cyclical behaviour and distinctive patterns. Context-appropriate policies are required to leverage the development impact of each remittance corridor, in terms of: location; transfer channels; sender and recipient profiles; and use by recipients. Thought should also be given to the impact of: poverty reduction; protection against shocks; and increased ability to invest in human and physical capital. Above all, a holistic vision must be maintained to allow for a complete understanding of this complex phenomenon. Political actions for strengthening the role of remittances on development have so far mostly focused on reducing the costs of sending remittances through formal channels, but the overall landscape of responses is still fragmented, insufficiently developed and facing significant challenges.