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Fostering investment of the family remittances in value chains : Case studies in the Dominican Republic, El Salvador and Guatemala

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Author: Padilla, Ramón - Stezano, Federico - Villarreal, Francisco G. UN symbol.: LC/TS.2020/102 50 p. Editorial: CEPAL August 2020


Family remittances represent an important source of resources and external financing for many Latin American and Caribbean countries, helping greatly to reduce poverty, increase private consumption, and boost national economic growth, among other things. Although a large share of remittances are intended to cover basic needs, such as food, health care and housing, some of them could be used to finance income-generating activities.

This document summarizes the main findings of the technical collaboration project carried out by the Economic Commission for Latin America and the Caribbean (ECLAC) and the International Fund for Agricultural Development (IFAD) with the Governments of the Dominican Republic, El Salvador and Guatemala, focused on promoting the investment of remittances in rural value chains. Given the strictly private nature of family remittances, the strategies aimed at the recipients and senders of these resources always centred on the realization that the only way to secure investment of a portion of remittances was through incentives, advice and facilitation measures. This document offers a summary of the methodology used, the spaces in which remittances can be used to strengthen value chains, and the strategies and lines of action aimed at encouraging the investment of remittances in these value chains.

Table of contents

Introduction .-- I. Background .-- II. Methodology .-- III. Value chains selected .-- IV. Remittances, financial inclusion and the production characteristics of the three value chains analysed .-- V. Strategies to promote greater investment of family remittances in value chains .-- VI. Conclusions and lessons learned.