The United Nations (UN)’s International Day of Family Remittances (IDFR) is annually observed across the globe on 16th June to recognise more than 200 million migrant workers across the globe who send money home to more than 800 million family members.
- The day also highlights the resilience of the migrant workers in facing economic insecurities, natural and climate-related disasters and a global pandemic.
Background:
i.International Day of Family Remittances (IDFR), a universally recognized observance
adopted by the Governing Council of the International Fund for Agricultural Development (IFAD) on 17 February 2015.
ii.The United Nations General Assembly(UNGA) adopted the resolution A/RES/72/281 on 12th June 2018 and proclaimed the 16th June of every year as the International Day of Family Remittances(IDFR).
Significance:
i.IDFR is a key initiative of the Global Compact for Safe, Orderly and Regular Migration which urges to reduce the transfer costs and greater financial inclusion through remittances.
ii.As a part of the IDFR’s biannual campaign 2021-2022 “Recovery and Resilience Through Digital and Financial Inclusion”, IFAD has organised various in-person events.
Key Points:
i.Remittances, defined as cross-border person-to-person payments of relatively small value serve, plays a major role in the development of the world.
ii.The World Bank’s report (May 2021), showed a decrease in remittances of only 1.6 per cent in 2020, to USD 540 billion from USD 548 in 2019.
iii.According to the World Bank’s 2022 data, in 2021, the remittances grew and reached USD 605 billion sent to low and middle-income countries.
iv.The accelerated adoption of digital technology by migrant workers and their families played a major role in formal remittances in 2020 and 2021.
v.The mobile remittances alone increased 65% during 2020 to USD 12.7 billion.
Role of Remittances in achieving SDGs:
i.The 2030 Agenda for Sustainable Development, adopted in September 2015, specified 17 Sustainable Development Goals (SDGs) to address the major challenges facing the world today.
- It is a global commitment to eradicate poverty and achieve sustainable development by 2030, ensuring that no one is left behind.
ii.SDG 10.c commits, by 2030, to reduce to less than 3 per cent the transaction costs of migrant remittances and eliminate remittance corridors with costs higher than 5%.
iii.Migrant remittances, however, contribute directly and indirectly to several SDGs in addition to 10.c, as outlined in IFAD’s Remittances, investments and the Sustainable Development Goals report.
World Bank’s Migration and Development Brief (May 2022:):
i.According to the World Bank’s Migration and Development Brief “A war in a pandemic – Implications of the Ukraine crisis and COVID-19 on global governance of migration and remittance flows”, released in May 2022, the officially recorded remittance flows to low- and middle-income countries (LMICs) are expected to increase by 4.2% in 2022 to reach USD 630 billion.
ii.Remittances to Ukraine, the largest recipient in Europe and Central Asia, are expected to rise by more than 20% in 2022.
