Remittances are extremely important in the Latin American context. In 2006, remittances to Latin America amounted to about US$52 billion, making them comparable to foreign direct investment (FDI) and much larger than official development assistance (ODA) flows to the region. Today, Latin America is the top recipient region of remittances both by volumen and in per-capita terms. Yet some important questions remain. What is the impact of these flows on the poverty levels of the different countries? Are there costs associated with remittances—and more significantly—to the migration that logically precedes remittances flows? What are the main challenges that policy makers face in countries experiencing a surge in remittances flows? In short, what is the development impact of remittances in Latin America, and how can it be enhanced?

CONTENTS

Foreword
Guillermo Perry
Acknowledgments
Abbreviations

1. The development impact of remittances in latin america
2. How important are remittances in latin america?
3. Migration and remittances in latin america: patterns and determinants
4. Do remittances lower poverty levels in latin america?
5. Remittances and household behavior: evidence for latin america
6. Do remittances affect recipient countries’ financial development?
7. Remittances, the real exchange rate, and the dutch disease phenomenon
8. Do conditional cash transfer programs crowd out private transfers?
9. Facilitating remittances flows and security in the system
10. Remittances and growth: the role of complementary policies