Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/324225 
Authors: 
Year of Publication: 
2025
Series/Report no.: 
Research Paper No. 219
Publisher: 
South Centre, Geneva
Abstract: 
Remittances are a lifeline for many households in low and middle income countries (LMICs), and have emerged as an important source of external financing for sustainable development. With over 800 million people dependent on remittances worldwide, their importance for developing and least developed countries is well established. However, the high cost of remittances remains a significant challenge, and despite global commitments to reduce these costs, progress has slowed down. This paper thus provides an assessment of the current drivers of remittance costs and explores the relevant policy discussions and initiatives at the United Nations (UN) and Group of Twenty (G20). It further highlights the continuing challenges as well as the innovative solutions such as increasing digitalisation and development of cross-border fast payment systems in different regions of the global South. The upcoming Fourth International Conference on Financing for Development (FfD4) and G20 initiatives under South Africa's Presidency present important opportunities for the international community to redouble its efforts and make concrete, ambitious commitments to lower the cost of remittances. Finally, the paper provides some relevant policy considerations and recommendations, especially to accelerate the implementation of existing commitments, leverage digital public infrastructure and to discourage levying of taxes on remittance flows to developing countries.
Subjects: 
Digital Public Infrastructure
Fast Payment Systems
Financial Action Task Force (FATF)
Financing for Development
Fourth International Conference on Financing for Development (FfD4)
Group of Twenty (G-20)
Remittances
Document Type: 
Research Report
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