Emigrant Remittances: Policies to Increase Inflows and Maximize Benefits

Abstract

Emigration from developing countries to developed countries shows no signs of slowing in this era of globalization.While there are positive and negative aspects to emigration for both sending and receiving countries, developing countries, which are most likely to be labor-sending countries, should focus their attention on maximizing the benefits that accrue from the positive aspects of emigration.One of these positive aspects is remittances that working migrants send to relatives still living in their country of origin.While the amount of remittances a country realizes is dependent on many factors, the general trend in remittance inflows is that they are increasing.Developing countries, ready to explore every option available to increase their citizens' welfare, should focus on developing policies that maximize and channel this increasing flow of remittances.This paper first gives a brief overview of the migration-development discourse.Part II will then examine remittance trends and the magnitude of remittances, both worldwide and in specific countries.Finally, Part III will discuss the factors that are important determinants in the amount of remittances a country receives, examples of policies used to maximize remittances, and examples of policies designed to channel remittances into programs that maximize social benefit. I. MIGRATION AND DEVELOPMENTThroughout the discourse on migration and development there have been two prominent opposing positions.One position takes a negative view of migration, arguing that it is merely a response to "the need and strategies of transnational capital."'The opposing position contends that migration is mutually beneficial to