Remittances Not a Cure-All

Rob Katz — Wed, 01 Nov 2006 10:10:45 -0500

November 1, 2006 - 11:00, Wall Street Journal

Migrants' Money is Imperfect Cure for Poor Nations

Story Link: http://online.wsj.com/article_print/SB116234841054209739.html

Teaser:
It's the sort of scene that many development economists believe could transform some of the world's most impoverished regions, by putting cash directly in the pockets of the poor. With tens of millions of migrants around the globe sending remittances home, the flood of money has grown immense -- $167 billion last year, according to the World Bank.

This lively mountain town survives on money sent from its sons and daughters living in the U.S. On days payments arrive, lines at the local credit union can reach 150 deep. The crowds then hail motorcycle taxis and head for the town's open-air market to stock up on food and clothing, or browse tiny appliance stores stuffed with blaring televisions and stereos.

It's the sort of scene that many development economists believe could transform some of the world's most impoverished regions, by putting cash directly in the pockets of the poor. With tens of millions of migrants around the globe sending remittances home, the flood of money has grown immense -- $167 billion last year, according to the World Bank.

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Remittances Not a Cure-All