International migration is exercising the hearts and minds of leading political and banking thinkers. According to the UN, migrant workers make up 3% of the world’s population. Whether migration is temporary or permanent, for economic or other gain, it inevitably leads to a flow of money between countries. In 2004, money transfers by migrant workers reached $110bn, an increase of 52% on 2001. A recent World Bank report indicated that money transfers (the second largest source of investment in developing countries after foreign direct investment) can help reduce poverty because they enable migrant workers to help the families they have left behind gain access to important social benefits.
One of the challenges of sending remittances is to make the process as simple as possible. The Universal Postal Union (UPU) is looking at ways of interconnecting corridors of migration to make processes smoother between, for example, India and the United Arab Emirates, and between Mexico and Spain. “Our approach is similar to that taken by the airlines – we’re opening links between countries sending and receiving immigrants,” says Edouard Dayan, director general of UPU.
