Abstract: With the global financial crisis turning into what more
and more appears to be a prolonged “Great Recession", we are
witnessing marked reductions in remittance transfers to developing
countries with the likely possibility that overall flows will decline
even further in the near future. With countless families reliant on
remittance inflows as a source of income maintaining their economic
livelihood, a reduction would put many at risk of falling below or
deeper into poverty. Recognizing the importance of remittance
inflows as a lifeline to the poor, policy should aim to (1) reduce the
barriers to remit in both sending and receiving nations thus easing the
decline in transfers; (2) leverage the development impacts of
remittances; and (3) buffer vulnerable groups dependent on
remittance transfers as a source of livelihood through sound countercyclical
macroeconomic policies.