Cherishing the goose with the golden eggs: Trends in migrant remittances from Europe to Morocco 1970-2004 Hein de Haas Roald Plug International Migration Institute Centre for Border Research James Martin 21st Century School Department of Human Geography University of Oxford. Radboud University Nijmegen. E-mail:
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[email protected] Forthcoming in International Migration Review 40(3), 603-634 Abstract In contrast to earlier predictions, migrant remittances from Europe to Morocco have shown an increasing trend over the past decades. Remittances constitute a vital and relatively stable source of foreign capital. The so-called “Euro effect” and concomitant money laundering can only explain part of the recent, extreme surge in remittances. The structural solidity of remittances is explained by the unforeseen persistence of migration to northwestern Europe; new labor migration towards southern Europe; and the durability of transnational and transgenerational links between migrants and staybehinds. The stable economic-political environment and new “enlightened” policies towards migrants explain why Morocco has been relatively successful in channeling remittances through official channels. 1. Introduction Migrant remittances have become increasingly important for a growing number of developing countries. Remittances have grown more rapidly than international migration (Buch et al., 2002). Total world remittance credits (the sum of worker remittances, compensation of employees, and migrant transfers) rose from US$ 2 billion in 1970 to US$ 28 billion in 1988. Remittances to developing countries more than doubled between 1988 and 1999. In contrast, official aid flows fell through most of the 1990s. Remittances are the second-largest source of external funding for developing countries behind FDI.