Remittances help millions around the world cover basics such as food and school fees. Experts warn that the practice of immigrants sending money back to their home countries can’t replace strong public services or fix deep structural inequalities — but some are trying to amplify the power of these funds to make a bigger difference.
Also in today’s edition: We look at five candidates to lead the African Development Bank, and what the demise of USAID means for the talent pool.
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In 2024, global remittances — money sent home by workers abroad — totaled around $685 billion, though even that may be an undercount. That’s more than either foreign direct investment or official development assistance, and with ODA shrinking across the board, some see remittances as a source of cash that can be channeled into development projects, my colleague Ayenat Mersie writes.
Remittances cover school fees, food, and medical bills, and sometimes help stabilize communities after conflict. But experts maintain that they’re not a silver bullet: They’re unequal, inconsistent, and not designed to fund public goods.
Such payments also proved resilient during the COVID-19 pandemic, despite predictions that they would collapse. That’s fueling hope now, as foreign aid dries up. “I think we're going to see a spike in remittances,” says Dany Bahar of the Center for Global Development. “In countries that rely heavily on USAID and have big diasporas … remittances could play a role in allowing these communities to have kind of a soft landing,” he adds.
India led global inflows in 2024 with $129 billion, followed by Mexico, China, the Philippines, and Pakistan. But smaller economies such as Tajikistan and Tonga are the most reliant — with remittances accounting for up to 45% of the gross domestic product.
And some communities are finding ways to amplify the funds. In Mexico, hometown associations pooled remittances to fund clinics and roads. The International Fund for Agricultural Development is working with banks to treat regular remittance flows as reliable income, helping more people access credit.
Read: Remittances far outstrip foreign aid. But can they replace it?
And then there were five
Five contenders hoping to lead the African Development Bank faced off last Tuesday at a Brookings Institution forum during the World Bank Spring Meetings: Amadou Hott of Senegal, Samuel Munzele Maimbo of Zambia, Sidi Ould Tah of Mauritania, Abbas Mahamat Tolli of Chad, and Bajabulile Swazi Tshabalala of South Africa.
They are all vying to succeed Akinwumi Adesina, who will step down this year. The board votes May 29; the new president starts Sept. 1. The stakes are high: The AfDB, with 81 member countries and $318 billion in capital as of 2024, is more crucial than ever as aid budgets shrink, Ayenat writes.
Each candidate pitched plans to modernize the bank. Tshabalala, the current senior VP, called for infrastructure-led integration, while Maimbo, a former World Bank official, stressed transparency and fairer debt terms.
Hott pitched a bank reorg: “What I’m proposing is to convert one of the vice presidencies … into a vice presidency dedicated to the private sector … making sure we are more responsive to the private sector and we are mobilizing more resources.”
Read: African Development Bank presidential hopefuls outline competing visions
Background reading: Inside AfDB's $10.8 billion project pipeline (Pro)
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Pope and glory
Pope Francis, who died last week at the age of 88, made development central to the Catholic Church — even if his liberalism had limits. The first pope from the global south, he spotlighted climate, inequality, and migration, driven by a “radical critique of the global economic system.”
“You are not satisfied with empty promises, with alibis or excuses,” he once told grassroots leaders. “You want to be protagonists.”
Francis elevated global south voices, naming cardinals from marginalized communities and championing those at the peripheries, says Séverine Deneulin of Oxford’s Laudato Si’ Institute. His social movement outreach was “probably the most radical part of his 12 years as pope,” says Gordon Whitman of Faith in Action International.
That radicalism will likely stick around for the papacy, no matter who is chosen to succeed Francis. “There’s no going back,” Deneulin says. “My guess is that the next pope will be elected to continue the work.” The conclave to select a successor begins May 7.
Read: ‘There’s no going back’ — Pope Francis’ global development legacy
The great food paradox
Modern agriculture is creating the very hunger it claims to solve, argues award-winning journalist Roger Thurow in his investigative book, “Against the Grain: How Farmers Around the Globe Are Transforming Agriculture to Nourish the World and Heal the Planet.” Speaking with Devex President Raj Kumar for the Devex Book Club, Thurow exposes how farming practices have left lands degraded, biodiversity vanishing, and farmers themselves going hungry.
His research delivers an ironic revelation: most people receiving food aid globally are themselves farmers. In Ethiopia, when farmers delivered record harvests, prices crashed with no markets ready — leaving them devastated when drought hit. Thurow's conclusion? The answer to food security isn't industrial agriculture, but Indigenous, regenerative practices that can nourish both people and the planet simultaneously.
Listen to the podcast episode.
Adding consult to injury
After more than 9,500 potential USAID layoffs — plus thousands more at implementing partners — many may turn from staff jobs to consulting to make ends meet. That would mean such consultants could flood the market, driving down rates for everyone, Devex contributor Rebecca Root writes.
Trump’s aid freeze triggered over 170,000 job losses globally, and even new funding from groups such as the Skoll Foundation and the Gates Foundation won’t be enough, says career coach Stephanie Mansueto.
"It's not just about people getting jobs. … People are going to have to shift from this employer-type of model to a diversity of things,” says Geneva-based coach Kelsi Kriitmaa.
Some consultants are already slashing fees by 25%-50%, some sources tell Devex. Furthermore, Kriitmaa warns: “The biggest thing that I'm fearful of is that people are going to start low-balling themselves, which undercuts the sector.”
Read: How the talent landscape may shift post-USAID (Career)
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In other news
The United Kingdom is weighing plans to slash its nearly £2 billion ($2.7 billion) pledge to a key World Bank fund for low- and middle-income nations. [Bloomberg]
A new U.N. initiative is mobilizing global support for victims of terrorism, aiming to safeguard their rights and amplify their voices. [UN News]
India has threatened to pull out of the Indus Water Treaty, sparking fears of major water disruptions that could cripple Pakistan’s agriculture and economy. [DW]
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About the author
Helen Murphy
Helen is an award-winning journalist and Senior Editor at Devex, where she edits coverage on global development in the Americas. Based in Colombia, she previously covered war, politics, financial markets, and general news for Reuters, where she headed the bureau, and for Bloomberg in Colombia and Argentina, where she witnessed the financial meltdown. She started her career in London as a reporter for Euromoney Publications before moving to Hong Kong to work for a daily newspaper.
