Apr 28, 2019

Remittances are an invisible $500 billion aid juggernaut

This year marks a major milestone in terms of the cash flowing to low- and middle-income countries: Remittances are now significantly larger than any other source of funds.

Adapted from KNOMAD's "Migration and Remittances Recent Development and Outlook," April 2019; Chart: Axios Visuals

The big picture: Remittances generally arrive in small chunks, maybe a couple of hundred dollars at a time, but there are a lot of them, and they add up. Today, they're bigger than foreign direct investment, they're much bigger than flows from bond and stock markets, and they're about three times bigger than flows from official sources like the World Bank.

  • The development impact of remittances is enormous, for two main reasons. First, remittances disintermediate most government bureaucracy and go straight to poor individuals. Second, and more importantly, they are the only major foreign-currency flows that do not need to be repaid.
  • In Venezuela, remittances are a literal lifeline — many Venezuelans would die without them, according to World Bank remittances expert Dilip Ratha. And those flows aren't even measured in the chart above, since they take place in the grey market, out of sight of the authorities.

Why it matters: Remittances are a form of decentralized, distributed power — and they amount to more than $700 billion per year, most of which goes to poor people in poor countries. By comparison, total World Bank disbursements in 2018 were $46 billion.

Go deeper

Coronavirus updates: Market ends worst week since financial crisis

Data: The Center for Systems Science and Engineering at Johns Hopkins, the CDC, and China's Health Ministry. Note: China numbers are for the mainland only and U.S. numbers include repatriated citizens.

The stock market ended its worst week since the financial crisis, prompting the Fed to release a statement. Meanwhile, the WHO warned that countries are losing their chance to contain the novel coronavirus and raised its global risk assessment to "very high" Friday.

The big picture: COVID-19 has killed more than 2,860 people and infected more than 84,000 others in over 60 countries and territories outside the epicenter in mainland China. The number of new cases reported outside China now exceed those inside the country.

Go deeperArrowUpdated 3 hours ago - Health

California coronavirus: Latest case has no recent history of international travel

Gov. Gavin Newsom. Photo: Kevork Djansezian/Getty Images

A new case of the novel coronavirus in California was announced on Friday after Gov. Gavin Newsom said Thursday that 33 people had tested positive for the virus, noting the risk to the public remains low.

What's new: An adult woman with chronic health conditions in Santa Clara County who "did not recently travel overseas" or come into contact with anyone known to be ill was confirmed to have contracted the coronavirus on Friday by CDC and California Department of Public Health officials.

Go deeperArrowUpdated 4 hours ago - Health

Big video game conference delayed amid coronavirus concerns

Photo: GDC

Next month's Game Developers Conference in San Francisco became the latest tech event to be cancelled or postponed amid growing concerns over the spread of the novel coronavirus.

The big picture: A growing number of events are being scrapped, including Mobile World Congress and Facebook's F8 developer conference. Some, like the giant SXSW event in Austin, insist they are moving forward.