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Global Migration

Remittances and the brain drain

  • 3 things to know
  • Component 2

Overview

Multiplier effect of remittances, brain drain and world Health Organization safeguard list.

What you need to know

Answer each one before you reveal it.

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Key term

Define a remittance.

Numbers

How large are remittance flows to low- and middle-income countries?

Numbers

Which country receives the most remittances?

Questions from this subtopic

Each one with the model answer underneath.

  1. 1

    Define a remittance.

    Model answer

    A remittance is money sent home by a migrant to family in the country of origin. Transfers are usually small, frequent and spent on everyday needs.

  2. 2

    How large are remittance flows to low- and middle-income countries?

    Model answer

    The World Bank estimated remittances to low- and middle-income countries at about $656 billion in 2023. The total is larger than foreign direct investment and official aid combined.

  3. 3

    Which country receives the most remittances?

    Model answer

    India received around $125 billion in 2023, more than any other country. Mexico, China, the Philippines and Pakistan follow.

  4. 4

    Name a country where remittances make up a very large share of national income.

    Model answer

    Remittances are worth roughly a third to a half of GDP in Tajikistan and in Tonga. Small economies with large diasporas show the highest shares.

  5. 5

    How do remittances help at household level?

    Model answer

    Families spend remittances on food, school fees, healthcare and better housing. A regular income from abroad also lets a household borrow and invest.

  6. 6

    Give two criticisms of remittance dependence.

    Model answer

    Remittances leave a country exposed to recession in the host economy. Spending on imported consumer goods may also do little for local production.

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