Remittances serve as a vital lifeline for many developing countries. According to the World Bank, remittances to low- and middle-income countries (LMICs) will reach a record $630 billion this year.
Representational image. Reuters
The world marks International Day of Family Remittances (IDFR) on 16 June to recognise the importance of over 200 million migrant workers who send money home. The day highlights the resilience of these migrant workers in the face of disasters, economic insecurity and environmental and pandemic-related challenges.
According to the United Nations, over 800 million people receive money as foreign remittances from their loved ones. Despite the ongoing COVID-19 pandemic, people sent in over $605 billion as remittances to their families in low and middle-income countries in 2021.
Celebrations:
The International Day of Family Remittances will be marked by the International Fund for Agricultural Development (IFAD) through in-person events as part of its biannual campaign “Recovery and resilience through digital and financial inclusion.”
Significance:
Remittances serve as a vital lifeline for many developing countries. According to the UN, remittances pay off several basic household needs. They also support skills formation and help people access more opportunities through education and entrepreneurship. “These resources prove transformational for both households and local communities, enabling many families to achieve their ‘own SDGs'” as per the global body.
Remittances contribute to Sustainable Development Goals at the household, community, national and international level. They help reduce poverty, mitigate the negative impact resulting from climate change and also ensure collaboration in all sectors involved in sending money.
The crucial contribution of migrant workers, by way of remittances and investments, has also been recognised in the Global Compact for Safe, Orderly and Regular Migration. Adopted in December 2018, it calls for specific actions to maximise the impact of remittances.
Remittances in 2022:
According to the World Bank, remittances to low- and middle-income countries (LMICs) will reach a record $630 billion this year. Ukraine, which is the largest recipient in Europe and Central Asia, will see remittances rising by over 20 percent. However, outflows to many Central Asian countries, for which Russia is the main source, will likely decline dramatically.