Creating an enabling environment to enhance the development impact of remittances

Remittances can contribute to financing development and improving the lives of millions of households in developing economies. This chapter examines the link between remittances and long-term investments in human capital and other types of productive investments, and analyses the main factors that influence remittance-led development. It further examines and discusses the role of sectoral policies in enhancing the development impact of remittances. The chapter discusses various sectoral policies beyond migration and development policies that can indirectly affect remittance patterns and use. Building on these findings, the chapter explores how policies, directly and indirectly, can spur development by enhancing the sending and use of remittances.