1945

Impact of remittances on poverty and income distribution

In recent years, the flows of remittances to Latin America and the Caribbean increased significantly and in 2004 stood at US$ 45 billion. These resources caused different effects on the economy of countries as well as on the living conditions of their inhabitants. In particular, they enable a high percentage of remittance–receiving households to overcome indigence and poverty and, in some cases, substantially improve income distribution in that group. Nevertheless, since remittance–receiving households account for only a small percentage of total households, remittances only have a small impact on poverty and inequality levels of the population as a whole.

Related Subject(s): Economic and Social Development
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