The Silent Globalization of Remittances

When immigrants work in wealth countries like the US, they often send money back home to families. Such remittance income far exceeds foreign aid or direct foreign investment in Central America and the Caribbean region. The World Bank estimates that such foreign exchange is on the rise, with more than $223 billion transferred from rich countries to poor in 2005. The distribution is direct and bypasses potential government corruption. With this income distribution and the gradual exchange of skills that comes from working in the US, immigrant workers facilitate the process of globalization, individually distributing benefits and alleviating poverty. Some economists argue that such individual contributions are less efficient than organized development programs, but others contend that the payments contribute to stability, thereby reducing stark inequality and increasing security. – YaleGlobal