largentNew estimates from the World Bank reported in The Economist show remittances to the developing world continue to rise, and rose to $305 billion in 2008. The Bank’s expert Dilip Ratha argues the sustainability of remittances during hard financial times owes to the relatively small sums remitted [around 5% of a migrant’s income]. Further, while the current crisis is expected to reduce migration from poor to rich countries, as job availability falls and border rules tighten, most remittances are from long-standing migrants whose contribution is over 95% of all flows. 

Assuming these remittances are invested wisely, the buffer this sustainable support gives to ongoing livelihood development in developing countries should remain, further insuring these country’s populations from the severest impacts from the recession.

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