ABSTRACT
In 2023, the remittances to low- and middle-income countries reached USD 656 billion, according to the World Bank's Migration and Development Brief, 2024. Looking ahead, remittances are expected to grow at a faster rate and will surpass the Foreign Direct Investment and Official Development Assistance, playing a crucial role in reducing poverty directly or indirectly. This chapter discusses the impact of remittances on the economic development of countries of origin, its effect on reducing the severity of poverty at the household level, and its usage for developmental projects. To effectively leverage remittances for developmental purposes, it is imperative to establish appropriate institutions and policies that promote financial inclusion in the countries of origin. To do so, the research employs a qualitative approach using secondary data such as reports, surveys, and policies from different countries. The study concludes by highlighting the role of policymakers and government in implementing comprehensive financial literacy programs aligning with sustainable development programs.
