The World Bank will on Tuesday urge policymakers to take a more cautious approach towards the development potential of remittances, the multi-billion dollar financial flows sent home by migrant workers in North America, Europe and Asia.

In a report analysing their significance in Latin America and the Caribbean, bank economists argue that remittances are not “manna from heaven”, that the benefits have been “overestimated” and that associated social and economic costs in developing countries have not been taken into account.