Remittances To Developing Countries To Exceed $6.5 Trillion Between 2015-2030: UN

UNITED NATIONS, (UrduPoint / Pakistan Point News - 18th Jun, 2018 ) :The United Nations agency tasked with boosting rural development has estimated that remittances sent to developing countries could cross $6.5 trillion between 2015 and 2030, involving over one billion senders and receivers.

The agency, International Fund for Agricultural Development (IFAD)IFAD, said in 2017, 200 million migrants sent 481 billion Dollars to remittances-reliant countries of which 466 billion dollars went to developing countries, helping sustain about 800 million people across the world.

This amounts to more than three times the annual official development assistance that countries give in aid, the rural development agency said.

Close to half of remittances will go to rural areas where poverty and hunger are the highest, according to IFAD.

"Remittances are vital for millions of families, helping them to address their own development goals, but we can help them do more and build their longer-term future," Gilbert Houngbo, President of IFAD, said.

According to IFAD, after spending remittances on basic needs such as food, housing, education and health, a sizable amount " over $100 billion, still remains " presenting a large pool of resources, which can then be invested in financial and tangible assets such as savings or small business development that help families build their future.

These productive activities can also create jobs and transform economies, in particular in rural areas, added IFAD.

"Given appropriate investment options, customized to their circumstances and goals, remittance families will invest more and become agents of change in their communities," urged Houngbo.

The IFAD President's call comes against the backdrop of the recent designation, by the UN General Assembly, of 16 June as the International Day of Family Remittances, originally created by the IFAD Governing Council.

Proclaiming the International Day, the General Assembly also recognized the "transformative impact" of remittances, including those from migrants, for the implementation of the Sustainable Development Goals and in supporting long term development strategies.