Exporting Citizens, Importing Remittances: The Developing World's Newest Strategy to Combat Poverty

Abstract

Today, three percent of the world's population lives and works outside its country of birth. This rise in migration has led to a surge in remittances, which now represent the most important source of income for many developing countries. This paper will focus on the debate surrounding the impact of remittances on poverty among both receiving households and the non-receiving community in the country of origin, concluding that remittances have a higher propensity to be invested in education, health, and entrepreneurship than non-remittance based income. Its findings highlight the potential of a sustainable method of south-to-south development that may very well redefine how policy makers approach migration and development.