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. Economist Dilip Ratha describes the promise of these “dollars wrapped with love” and analyzes how they are stifled by practical and regulatory obstacles.

The hidden force in global economics: sending money home

Money sent home by migrants, known as remittances, reached $413 billion in 2013—triple the amount of global development aid. These small but steady flows support families, fund education, and even reduce poverty in entire nations, as seen in Nepal and Tajikistan. Yet, high transfer fees and restrictive regulations drain billions that could otherwise lift up vulnerable communities. When remittances move freely, they empower families and spark opportunity across borders.

Remittances Eclipse Foreign Aid And Fuel Global Progress

*Innovative Financing for Development*