In 2013, international migrants sent $413 billion home to families and friends — three times more than the total of global foreign aid (about $135 billion). This money, known as remittances, makes a significant difference in the lives of those receiving it and plays a major role in the economies of many countries.
India received $72 billion and Egypt $18 billion in 2013.
I liked an interesting point he made. These remittences often include business advice to those relatives in the home country.
This is a great talk if you are interested in economics and global development. It is very important to understand the issues we face in helping billions living in poverty. As he says regulation of small remittences must be reduced. Policies forced by countries like the USA have damaged poor people’s lives worldwide with extremely onerous regulation.
Web site of the speaker: Dilip Ratha
Related: International Development Fair: The Human Factor – Creating a World Without Poverty – Supporting Virtual Workers – Solar Power Market Solutions For Hundreds of Millions Without Electricity
Comments
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This money is actually very important for developing countries. I would like to give example about Turkey. In 1960’s and 70’s Germany took thousands of Turkish workers to work as `guest worker`.(now There is more than million Turks in Germany) But year by year, these `guest workers` settled there, bring their families, their kids born in Germany. But They keep sending their money to Turkey (probably they didn’t trust German Banks or they send their families to that savings) because all of them was thinking that one day when they save enough money they will go back to their country. These cash entered Turkey and developed Turkey’s economy year by year. However, after 1st generation Turkish workers, 2nd generation who knows German as mother-tongue and doesn’t really belong to Turkey didn’t send their money back like their father, it is logical because they don’t have bond like 1st generation. So, developing Turkish economy got hit, because cash flow from Turkish-German workers decreased sharply and Turkish economy really needed it. Bum! At the end of 90’s Turkish Economic Crisis started. (Of course there are other reasons also)
All in all, I really think that this money is very important for economies. I’m sorry if I make it too long. 🙂
Dealing with banking issues is one of the most difficult aspects of a small digital nomad business…