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Workers’ Remittances: An Important and Stable Source of External Development Finance

• Remittance flows are the second-largest source, behind FDI, of external funding for developing countries. In 2001, workers’ remittance receipts of developing countries stood at $72.3 billion, much higher than total official flows and private non-FDI flows, and 42 percent of total FDI flows to developing countries (table 7.1). Remittances to low-income countries were larger as a share of GDP and imports than were those to middle income countries. Remittances are also more stable than private capital