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Remittance flows to developing countries recover to pre-crisis levels

Sanket Mohapatra's picture

We have just released our latest estimates and outlook for remittance flows to developing countries (see brief). Officially recorded remittance flows to developing countries recovered quickly to $325 billion in 2010 after the global financial crisis. But they have not kept pace with rising prices in recipient countries. Remittance flows are expected to grow at lower but more sustainable rates of 7-8 percent annually during 2011-13 to reach $404 billion by 2013.
 
Remittance flows to Latin America are growing again in 2011 because of the stabilization of the U.S. economy. Remittance flows from Russia and the GCC countries to Asia have been strong due to high oil prices. However, weak job markets in Western Europe are creating pressures to reduce migration.

The crisis in the Middle East and North Africa has brought a great deal of uncertainty for migration and remittance flows. These political crises and the recent global financial crisis have highlighted, once again, the need for high-frequency data on migration and remittances.

Comments

Two questions- 1- Govt. of India has benefited from diaspora bonds as well as from remittances. However, there no institutional process to avail diaspora funding on a continuous basis. Is there a case where it can be done may be through sub national debt issues/ sub sovereign issues and such other instruments and are there case studies of this nature where diaspora community funds development projects not occasionally but on a continuous basis. What are the limitations of such an initiative? 2- Now more and more Indian MNCs are investing around the world. In Latin America now there are more than 35 Indian MNCs including the sugar giant Renuka Sugars from Karnataka. Indian MNCs investments are generally posted as India's outward FDIs. Is this a case of India's financial diaspora which is taking shape? Is there any definition? R P Pradhan Diaspora Research Teaches International Trade& Business BITS Pilani Goa Campus Goa

Diaspora fund continuity? Is there a case for countries like India to make the Diaspora financial platform /engagement a continuous process. Though India has been a beneficiary of Diaspora bonds/ NRI remittances, investments from those constituencies are not structured to be in a permanent basis. The country can perhaps expand the diaspora platform to target far greater revenue generation. Investments are critically needed in education sector and more particularly on building good research institutes which are really good and world class and real time research oriented. Even health sector/ urban and rural infrastructure sector can be diaspora fund targeted on a continuous basis. Is there a case where such financial investment continuity can be structurally and institutionally floated towards development finance? India's Financial Diaspora ? One more area perhaps needs clarification. Now, Indian MNCs are investing abroad. For that matter, more than 40 Indian MNCs are now operating in Latin America and Caribbean region. While their investments are posted as India's out ward FDIs, does this movement of capital amount to India's financial diaspora which is beginning to take shape? Is there any clarity on this issue? Greatly be obliged answers for this. R P Pradhan Faculty BITS Pilani Goa Campus Research interest - migration/diaspora issues

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