Worldwide, 1 in 9 people are supported by funds from migrant workers

Remittances from international migrant workers to their families are expected to rise to more than $ 550 billion by 2019, up from $ 529 billion last year, up from $ 20 billion last year. Gilbert F. Houngbo, President of the International Fund for Agricultural Development (IFAD).

In a message published on the occasion of the United Nations International Remittances Day (IDFR), observed every June 16, Houngbo pointed out that the money sent home by the 200 million migrant workers of the world accounts for more than three times the amount of official development badistance (ODA) and exceeds foreign direct investment (FDI). This is an impressive figure as it represents only 15% of migrant workers' incomes, with 85% remaining in host countries.

"Behind these numbers are the $ 200 or $ 300 individual remittances that migrants regularly send home, so that the 800 million family members can provide for their immediate needs and build a better future at home. Half of these flows are sent to rural areas where they account for most, "said Houngbo.

If current trends continue, it is projected that $ 8.5 trillion will be transferred to families in developing countries over the 15 years of the Sustainable Development Agenda by 2030. By then, we estimates that more than $ 2 trillion (on average 25% of remittances received) will have been saved or invested. If they are effectively mobilized, remittances can have an unprecedented multiplier effect on sustainable development.

"Governments, regulators and the private sector have an important role to play in harnessing the effects of these flows and helping one billion people achieve their own sustainable development goals by 2030," added M Houngbo.

IFAD has a long-standing commitment to enhancing the development impact of remittances, with half of the inflows going to rural areas in developing countries. The crucial contribution of migrant workers has also been recognized in the Global Compact for Safe, Orderly and Regular Migration, adopted in December 2018.

Remittances are private funds transferred through private channels and are increasingly of interest to the private sector, both as a business opportunity and as a development tool. Global efforts are underway to bring transfer costs closer to the 3% target set in SDG 10.

Linking these flows to financial services and, in so doing, bringing millions of people into the financial sector remains one of the greatest development opportunities offered by remittances.

"Over the past decade, IFAD has invested in more than 40 countries, supporting more than 60 projects to maximize the impact of remittances on the development of families and communities," said Paul Winters. IFAD Associate Vice President, at a meeting held today at The United Nations Headquarters in New York celebrates International Day and its # FamilyRemittances2030 Campaign.

"Providing better access to remittances and better use of families through rural financial institutions has had a positive impact on rural areas by integrating many unbanked beneficiaries into the formal financial sector. Families can now guarantee remittances and access financial products such as savings, credit and insurance, "he added.

"In fact, it is fair to say that in poor rural areas, remittances can help make migration a choice rather than a necessity for so many young people and for future generations."