International Day of Family Remittances: Supporting Sustainable Development Goals
Every day, millions of families around the world visit their post offices, banks, and money transfer operators to collect money sent to them by their relatives working abroad. These family remittances are often what allows them to send their children to school, make home improvements, set up small businesses, or simply get by.
Estimated at hundreds of billions of dollars each year, the remittances not only support families but help entire countries develop and eradicate poverty. Recognizing their importance, the United Nations General Assembly has proclaimed 16 June as the International Day of Family Remittances.
Continued Flow of Remittances during the COVID-19 Pandemic
While border closures due to the COVID-19 pandemic have severely restricted all forms of human mobility, the vital remittances continued to flow. The most recent data from the World Bank show that remittances to low- and middle-income countries reached $540 billion in 2020, just 1.6 per cent less than in 2019.
This trend, defying earlier pessimistic projections, is consistent with historical observations: in times of financial crises or natural disasters, migrants tend to increase remittance transfers to support struggling family members back home.
Sustainable Development Goals and Family Remittances
The significance of family remittances was not lost on the designers of the Sustainable Development Goals (SDGs) either. Goal 10 of the SDGs includes a target of reducing the average transaction costs of migrant remittances to less than 3 per cent by 2030. Yet the world is not on track to achieve that ambitious benchmark.
According to the latest World Bank data from the end of 2020, the global average cost of sending $200 was 6.5 per cent – more than double the SDG target. Average remittance costs were the lowest in South Asia, at 4.9 per cent, while sub-Saharan Africa continued to have the highest average cost – a whopping 8.2 per cent.
Assessing the Impact and Linkages
In July 2021, Member States will have an opportunity to assess the transformative impact of remittances across the SDGs during the High-level Political Forum on Sustainable Development. And next year, the General Assembly will take stock of the Global Compact for Safe, Orderly and Regular Migration, including the critical linkages between international migration and sustainable development.
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SDGs, Targets, and Indicators Analysis
1. Which SDGs are addressed or connected to the issues highlighted in the article?
- SDG 10: Reduced Inequalities
- SDG 17: Partnerships for the Goals
The article primarily addresses SDG 10, which focuses on reducing inequalities. It specifically mentions Goal 10’s target of reducing the average transaction costs of migrant remittances to less than 3% by 2030. Additionally, the article indirectly connects to SDG 17, which emphasizes partnerships for achieving the goals, as it mentions the upcoming High-level Political Forum on Sustainable Development where Member States will assess the impact of remittances across the SDGs.
2. What specific targets under those SDGs can be identified based on the article’s content?
- Target 10.c: By 2030, reduce to less than 3% the transaction costs of migrant remittances and eliminate remittance corridors with costs higher than 5%.
The article mentions Target 10.c, which aims to reduce the average transaction costs of migrant remittances to less than 3% by 2030. This target is directly related to the issue of high remittance costs highlighted in the article.
3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?
- Indicator 10.c.1: Remittance costs as a proportion of the amount remitted.
The article mentions the global average cost of sending $200 as 6.5%, which is more than double the SDG target of less than 3%. This information indicates that the indicator used to measure progress towards Target 10.c is the remittance costs as a proportion of the amount remitted.
SDGs, Targets, and Indicators Table
| SDGs | Targets | Indicators |
|---|---|---|
| SDG 10: Reduced Inequalities | Target 10.c: By 2030, reduce to less than 3% the transaction costs of migrant remittances and eliminate remittance corridors with costs higher than 5%. | Indicator 10.c.1: Remittance costs as a proportion of the amount remitted. |
Source: un.org
