"Migration has a big influence on development”, said François Bourguignon, the World Bank's Chief Economist, during a visit in Brussels in Feb 2004. “Migrants send around $100 billion yearly to their home countries. That's twice the amount that's being spent on ODA. We want to investigate how this money can be used in order to stimulate development in those countries”. An example of how migrant remittances can support development projects are the Hometown Community Matching Funds schemes in Mexico. In a scheme run by the Mexican state of Zacatecas every remittance dollar donated by a migrant, is matched by one dollar each from the federal, state and local governments. In less than a decade, this programme raised about US$ 4.5 million (EUR 3.6 million) towards hundreds of projects that provide water, build schools and other facilities. [1] Expatriate associations also support development projects in their home country. The Association of Kenyan Professionals in Atlanta (USA) has launched a water development initiative for 2003-2004 [2].

[1] International Migration Policy Programme (2003). Migrant remittances - country of origin experiences : strategies, policies, challenges, and concerns. http://www.livelihoods.org/hot_topics/docs/REMIT.... See also: Adams, R.H. and Page, J. (2003). International migration, remittances and poverty in developing countries. (World Bank policy research working paper ; no. 3179). http://econ.worldbank.org/files/31999_wps3179.pd...
[2] AKPA Endeavors - Water Appropriation in Kenya, http://akpa-atlanta.org/endeavors/pgWater2003-20...

Contact: François Bourguignon, Chief Economist and Senior Vice President, Development Economics, World Bank, research@worldbank.org, http://econ.worldbank.org/staff/fbourguignon

Source: World Bank Press Review, 27 Feb 2004

Livelihoods Connect - Migration Hot Topic - Remittances, http://www.livelihoods.org/hot_topics/migration/remittances.html