Immigration and remittances are the most effective welfare programs ever devised. Anyone who claims to speak for the world’s poor should embrace them. Here are some relevant facts:
1. Total remittances around the world are now about $80 billion a year, twice the amount of so-called “foreign aid,” which often goes to corrupt governments, not poor citizens.
2. Remittances are now ten times the amount of net private capital flows, after adjusting for profit repatriation and interest payments.
3. Mexicans working in the United States send back home $20 billion every year. This sum is twice the value of Mexico’s agricultural exports, and over a third more than tourist revenue.
All the figures are from the November/December issue of Foreign Policy, not yet on-line.
My take: There is altogether too much talk about the United States being ungenerous with foreign aid. We show up as 21st in the rankings, in per capita terms, according to one estimate. These figures neglect remittances, where the U.S. is a very clear first with $28.4 billion a year sent to other countries. The bottom line: when it comes to other nations, the United States is the most generous country in the world.
Are you interested in the rest of the top ten, for remittances? Saudi Arabia, with $15.1 billion a year, is a clear number two. Then you have Germany, Belgium, Switzerland, France, Luxembourg, Israel, Italy, and Japan. The Scandinavian nations receive so much kudos for their high foreign aid per capita, but when it comes to remittances, even tiny Luxembourg, population 437,389, beats them out.