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.

Expand chart
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

Updated 56 mins ago - Politics & Policy

Trump whisked out of press briefing after shooting outside White House

President Trump was escorted out of a coronavirus press briefing by a Secret Service agent on Monday evening after law enforcement reportedly shot an armed suspect outside of the White House.

What's new: The 51-year-old suspect approached a uniformed Secret Service officer on the corner of 17th Street and Pennsylvania Avenue NW, near the White House, and said he had a weapon, the agency alleged in a statement late Monday. He "ran aggressively towards the officer, and in a drawing motion, withdrew the object from his clothing."

Updated 1 hour ago - World

Protests in Belarus turn deadly following sham election

Belarus law enforcement officers guard a street during a protest on Monday night. Police in Minsk have fired rubber bullets for a second night against protesters. Photo: Natalia Fedosenko/TASS via Getty Image

Protesters and security forces have been clashing across Belarus overnight in a second night of protests that has left at least one person dead, hundreds injured and thousands arrested.

Why it matters: Sunday’s rigged presidential elections have yielded political uncertainty unlike any seen in Aleksander Lukashenko’s 26-year tenure. After claiming an implausible 80% of the vote, Lukashenko is using every tool in the authoritarian arsenal to maintain his grip on power.

Updated 1 hour ago - Politics & Policy

Coronavirus dashboard

Illustration: Annelise Capossela/Axios

  1. Global: Total confirmed cases as of 11:30 p.m. ET: 20,014,574 — Total deaths: 734,755 — Total recoveries — 12,222,744Map.
  2. U.S.: Total confirmed cases as of 11:30 p.m. ET: 5,089,416 — Total deaths: 163,425 — Total recoveries: 1,670,755 — Total tests: 62,513,174Map.
  3. Politics: Trump claims he would have not called for Obama to resign over 160,000 virus deathsHouse will not hold votes until Sept. 14 unless stimulus deal is reached.
  4. Business: Richer Americans are more comfortable eating out.
  5. Public health: 5 states set single-day coronavirus case records last week — A dual coronavirus and flu threat is set to deliver a winter from hell.
  6. Sports: The cost of kids losing gym class — College football is on the brink.
  7. World: Europe's CDC recommends new restrictions amid "true resurgence in cases."