Publication

This paper details the flow of remittances from Spain to the home countries of its foreign workers. The author briefly overviews the basic theoretical debates surrounding the role of remittance funds on less developed countries, and notes a renewed interest in their use from national governments and international financial institutions in light of the events of 11 September 2001 as a means of funding terrorists. Presenting a case study of Spanish remittances to Morocco, the author proposes several ideas to increase the positive impact of remittance flows, including agreements to reduce transfer costs and increasingly involve financial institutions. The author also recommends that Spain must be more conscious of its international role in remittances and devise a plan accordingly, particularly in light of its security considerations.