Closing The Gap

The debilitating cost of remittances

The Debilitating Cost of Remittances | Economic Empowerment | GZERO Media

Dilip Ratha knows how hard it is to work abroad and send money home. Why? Because he had to go through the same hoops when he was a migrant.

It's the inconvenience and the cost, the World Bank's head of KNOMAD and lead economist says during a livestream conversation on closing the global digital gap hosted by GZERO in partnership with Visa.

Still, Ratha points out, these flows are a lifeline for millions of poor families around the world. And they keep the lights on in remittance-dependent economies like El Salvador or Lebanon.

With an average 6% commission, the amount lost each year is double all the aid that the US gives to the entire world or what sub-Saharan Africa gets.

Watch our recent livestream discussion on digital payments, the unbanked, remittances, and other tools for economic empowerment.

More For You

US President Donald Trump holds a bilateral meeting with Ukrainian President Volodymyr Zelensky alongside the NATO leaders summit at the Bestepe Presidential Compound in Ankara, Turkey, on July 8, 2026.
REUTERS/Jonathan Ernst

US President Donald Trump said he would grant Ukraine a license to manufacture Patriot air-defense missiles during the NATO meeting in Turkey on Wednesday, fulfilling a longstanding request from Kyiv.

Philippine Vice President Sara Duterte arrives before the start of her impeachment trial hearing at the Senate of the Philippines in Pasay, Metro Manila, Philippines, July 7, 2026.
REUTERS/Noel Celis/Pool

The Senate trial of Vice President Sara Duterte has turned a family feud into a fight over the Philippines’ political future — and its place between the US and China.