Migrant Workers and Remittances

The aid workers who really help, October 8, 2009, The Economist: “As the dust settled after the attacks of September 11th 2001, officials in America and elsewhere started tracking cross-border flows of money from migrants, in the hope of nabbing terrorists. Remittance agencies were regulated more heavily; cash transfers from foreign workers were monitored. Not much was discovered about terrorism, but lots of new data emerged on the economics of migration. It was a happy side-effect. Over the past few years migration experts have gained a clearer view of how some 200m people working abroad affect the lives of compatriots who stay home. The impact, it turns out, is huge and benign. Obviously, migrants help their homelands by remitting cash on a vast scale. Armies of itinerant nannies, dishwashers, meatpackers and plumbers shift more capital to poorer countries than do Western aid efforts. (This may long have been true, but without the data who knew?) The World Bank says foreign workers sent $328 billion from richer to poorer countries last year, more than double the $120 billion in official aid flows from OECD members. India got $52 billion from its diaspora, more than it took in foreign direct investment…”