Soaring remittances raise new issues

The sending of remittances by migrants is an old topic in the study of migration, but one that recently has stirred renewed policy attention. As estimates of global remittances by migrants rise, to a level that is on par with global development assistance and foreign direct investment in the developing world, it is not surprising that the phenomenon is of interest to development policymakers. What, then, are the "new" issues that researchers should be concerned with, if the development potential of remittances is to be realized? A useful starting point is to consider what is already known about remittance behaviour, as a basis on which new research might build. Beyond the obvious issue of measurement of the quantity of remittances – where much remains to be done – three key issues stand out. First, when and why do migrants choose to remit money, or remit greater sums? Second, how are these transfers made, and are there ways to make these transfers easier or more effective? And third, to what use are remittances put?