Remittances, or funds sent home by migrant workers, are moving up in the international development agenda. IFAD has called for the world to recognize how remittances can foster sustainable growth in developing economies, including through campaigns like the International Day of Family Remittances, and global leaders are finally listening.
The fourth International Conference on Financing for Development (FfD4) opened with the adoption of the Seville Commitment, a new global framework for development finance. Remittances are firmly embedded in this pledge.
“We recognize the positive contribution of migrants for inclusive growth and sustainable development in countries of origin, transit and destination,” the document reads.
Global leaders committed to redouble their efforts to reduce remittance costs, promote digital solutions and expand financial services for migrants and their families, among other goals.
But what does maximizing the development impact of remittances look like in practice? IFAD’s experience in El Salvador holds valuable lessons.