Several developing countries have made efforts to increase remittances from citizens residing abroad in more advanced economies. In summary, reducing transfer costs, providing financial incentives, embracing mobile services and targeted marketing to diaspora communities have helped many developing countries tap into remittances.
India – Has taken steps to reduce costs and make transferring funds back to India easier. Remittances make up around 3% of GDP.
Mexico – Provides tax breaks and encourages migrants to open Mexican bank accounts that make remitting funds easier. Receives the most remittances worldwide at around $35 billion annually.
Philippines – Heavily markets bonds and other financial products to diaspora Filipinos to encourage remittances. Makes up over 10% of GDP.
Bangladesh – simplified rules for remittances and offered incentives. Remittances are around 7% of GDP.
Egypt – Allows expatriates to open foreign currency accounts and get higher interest rates to encourage transfers.
Pakistan – Gives diaspora Pakistanis foreign currency accounts and housing incentives if they remit dollars.
Nepal – Partnered with money transfer companies to reduce fees and make digital transfers accessible globally.
Somalia – Encouraged innovative mobile money transfer services that diaspora Somalis use extensively.
Ethiopia – Issued diaspora bonds and identity cards to encourage remittances, which are about 5% of GDP.
Sri Lanka – Gives preferential exchange rates and operates a welfare fund for migrants to encourage remittances.