Remittances to developing countries decreased by 2.4 percent to an estimated $429 billion in 2016. This is the second consecutive year that remittances have declined. Such a trend has not been seen in the last 30 years. Even during the global financial crisis, remittances contracted only during 2009, bouncing back in the following year.
Migrant workers sent $6.77 billion home to Bangladesh in July-December, down 8.41% from the same time a year ago. For the first time in recent memory, Bangladesh has experienced a decline in remittances in the first half of the fiscal year.
There are four factors that can potentially account for the decline in remittances: the stock of Bangladeshi migrants abroad, earnings per migrant worker, their average propensity to save, and their average propensity to remit money home out of those savings.
The DEC-PREM Migration and Remittances Unit of the World Bank
Invites you to a
"Management of International Migration in India"
Presenter: Professor Irudaya Rajan
Center for Development Studies, Thiruvananthapuram, India
Chair: Dilip Ratha
Lead Economist and Manager, DEC-PREM Migration and Remittances Unit
April 20, 2011 12:30 – 2:00pm
Room MC 7- 100
Back home in the KBK districts of Orissa, the head of the household that for decades has worked with my family, fell ill recently. He is in his early 50s. His legs have stopped functioning normally. There have been similar cases before, and some got partially cured when they were taken to a doctor in Raipur, a city some 150 miles away. The family wants to take the patient to the same doctor. But that would cost a lot. They need cash. Urgently. They are considering approaching a local money lender in exchange for a mortgage on their meager ancestral land.
|Kathmandu, Nepal. Photo: © Simone D. McCourtie / World Bank|
You might recall that the finance minister of Nepal announced in the annual budget in July 2009 that the government would issue a diaspora bond to raise funds for infrastructure development. Indeed Nepal Rastra Bank followed through in June 2010 by floating a “Foreign Employment Bond”. Although the initial goal was to issue Rs. 7 billion (about $100 million), Rs. 1 billion was floated in the first round. Nepali workers in Qatar, Saudi Arabia, UAE, and Malaysia could buy the bond from one of seven licensed money transfer operators in denominations of Rs. 5,000 (about $65).
Data are hard to come by, but the funds raised have been minuscule, nowhere near target. Apparently, the name of the bond had nothing to do with its unsuccessful launch!
A World Bank report released on July 30 finds that poverty in Pakistan fell by an impressive 17.3 percentage points between 2001 and 2008 (from 34.5 percent in 2001-02 to 17.2 percent in 2007-08). Three out of Pakistan’s four major provinces – Khyber Pakhtunkhwa (formerly NWFP), Punjab, and Sindh – saw significant declines in poverty during this period. The largest fall in poverty was in Khyber Pakhtunkhwa (KP). According to the Bank report “high level of remittances, both foreign and domestic, seem to have facilitated” the decline in poverty in KP.
|UN Photo/WFP/Amjad Jamal|
|Photo © Simone D. McCourtie / World Bank|
India’s Ministry of Statistics and Programme Implementation has just released the “Migration in India 2007-08” report (June 2010) based on the 64th round of the National Sample Survey (NSS). This nationally representative survey includes 125,578 households (79,091 households in rural areas and 46,487 households in urban areas) which together have 572,254 individuals. The report has many interesting findings on internal and international migration and remittances in India, which you can read in the press release. I have highlighted a few that I found interesting:
Almost a third of Indians, or over 300 million people, are migrants. 28.5 percent of Indians (some 325 million people, out of a population of 1.14 billion in 2008) are migrants, according to the survey. 35 percent of people in urban areas and 26 percent of people in rural areas have moved from their place of usual residence.However, migration in India is largely confined to within the same state. 72 percent of migrant households in urban areas and 78 percent in rural areas have migrated within the same state.