Remittance- a boon

Remittances are the only means of survival for millions of poor households worldwide where money sent to beneficiary families enable them to afford not only the basic necessities of life which are otherwise lacking or inaccessible, but also a degree of economic empowerment. Remittances in addition to supporting domestic consumption, have also promoted investments in real assets including building schools and clinics, rather than formal sector financial instruments.
At the macro level, the use of remittances has helped to counter the effects of economic downturns such as political conflicts, financial crises and natural disasters, and contributed, to some extent, to the stability of recipient economies. Remittances also constitute a steady stream of foreign exchange that helps to stimulate economic growth in migrants’ countries of origin.

The effects of remittances are not restricted to the migrant households and stretch out to the entire community. The contribution of remittances to development is deduced primarily from migrant household surveys that supply information on the uses of remittances.

Until the onset of the global recession, remittances had proven to be a steady and dependable source of income for households in developing economies.

Remittances represent a significant and vital financial source; hence the issue of their effects is of utmost importance. It constitutes a very high proportion of foreign exchange. These inflows have enabled to maintain a growing level of foreign exchange reserves.

3 Responses to Remittance- a boon

  1. glen says:

    nice one guys…keep goin

  2. Yoshie says:

    I usually don’t post in Blogs but your blog forced me to, amazing work.. beautiful …

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