In recent years remittances have gained interest among the researchers, policy makers, members of the civil society and the international community due to their increasing size. In this paper I review the current literature on the impacts of international remittances on receiving countries at micro and macro level. I also assess the policy measures to support remittances in order to increase transfer flows and their productive use for development and poverty alleviation. The results from the review suggest that remittances are beneficial at family, community and national level through human capital formation, investment goods, poverty alleviation, and macro-economic stability. However, other studies blame remittances for reducing labour supply and participation decisions, over consumption and less investment,
inequality, inflation and lack of effects on economic growth. The policy literature calls for strengthening of the infrastructure supporting the remittances to reduce transaction costs; formalization of the remittance flows; and measures to increase the productive use of remittances. And if these policies are well integrated into broader national development strategies, remittances can benefit poor families, communities and developing countries.