What’s the difference between philanthropy and remittances?

Andrew Milner

The most significant source of income transfer from expatriates to their home country are remittances. According to the Hudson Institute’s latest figures, remittances from donor countries were $224 billion in 2014 whereas philanthropy accounted for $64 billion.

But what is the difference between diaspora philanthropy and remittance?

The short answer seems to be that when the support goes directly to an immediate family member for their use, it is remittance.

The fact that the Hudson Institute’s annual review now provides separate figures for remittances and philanthropy reflects a general acceptance that they are distinct.

 
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