Certain mechanisms have been identified by which remittances might not have beneficial effects on development or might even become counterproductive. First, remittances can lead to higher levels of imbalance in countries that are already suffering from an unequal distribution of income. This happens when migratory movements are highly concentrated in areas and socio-economic groups that, furthermore, are not the most vulnerable in the country. As it is the migrants’ families that receive the remittances, this concentration phenomenon becomes more intense. Secondly, some studies also alert to the risk of ‘Dutch disease’ when the volume of remittances.
