MONET 2030: Remittances by migrants

SDG 10: Reduce inequality within and among countries

Goal description

"The international community has made significant strides towards lifting people out of poverty. […] However, inequality still persists and large disparities remain in access to health and education services and other assets. Additionally, while income inequality between countries may have been reduced, inequality within countries has risen. […]"

Swiss target 10c: Through its international cooperation, the Confederation is committed to low and transparent costs for remittances sent by migrants and to establishing a framework to maximise the positive effect of these transfers on development.

Significance of the indicator
The indicator shows private transfers made by migrants who have lived and worked in Switzerland for at least one year to their country of origin. Remittances sent by migrants to their country of origin contribute significantly to combating poverty and improving living conditions. They can provide a safety net during conflicts or disasters when other sources of revenue fail. An increase in these transfers is, therefore, in line with the principles of sustainable development.

Help for interpretation
Among the reasons underlying the observed increase are economic liberalisation, growing migration flows and the rising number of well-education and consequently better paid migrants. The indicator does not provide information on any negative impact that remittances may have or on the countries remittances are sent to. It is estimated that more than two-thirds of funds are transferred to European countries.

International comparability
This indicator cannot be compared at international level.

Synthesis

The indicator shows an estimate of private transfers made by migrants who have lived and worked in Switzerland to their country of origin. This estimate is made each year by the Swiss National Bank based on the number of migrants working in Switzerland, their average wage and a hypothetical amount transferred to their country of origin. This estimate is subject to great uncertainty due to the methodology and hypotheses used.

World Bank – Personal Remittances

Swiss target 10c: Through its international cooperation, the Confederation is committed to low and transparent costs for remittances sent by migrants and to establishing a framework to maximise the positive effect of these transfers on development.

International target 10.c: By 2030, reduce to less than 3 per cent the transaction costs of migrant remittances and eliminate remittance corridors with costs higher than 5 per cent.