Tapping Untapped Rural Resources in Bangladesh
Introduction:
The importance of foreign remittances in the economy of Bangladesh is widely recognized and requires little reiteration. Along with the readymade garment (RMG) sector and non-farm activities in the agricultural sector, remittances have been identified as one of the three key factors that have been responsible for reducing the overall incidence of poverty in Bangladesh.
The volume of remittances from Bangladeshi migrant workers exceeded USD 10 billion in 2011 , a figure which dwarfs the amount of yearly foreign direct assistance received by the country.
But unfortunately most of the amount of the reserved remittance is used in non-productive investment. So it is quintessential for us that we find ways to utilize this huge amount of resource we currently have.
Objective:
The objective of this paper is to find out useful and effective means for tapping these untapped remittances and using these in new entrepreneurial ventures to bolster the domestic economy of the country.
Current Context of Remittance in Bangladesh
Who is sending remittances? International remittances are sent mainly by three large, but distinct types of migrant. Firstly, there is an important, mainly American and British, Diasporas of well-educated, high or middle income earners. Secondly, Diasporas of Bangladeshi origin belonging to the low-income or unemployed segments of the population also exists in industrialized countries. Thirdly, there is a major group of migrant laborers, who are residing for a specific period of time in Middle Eastern (mainly Saudi Arabia, UAE, Kuwait), South-East Asian
(Malaysia, Singapore) and some industrialized countries. The first two groups amount to more than a million emigrants, while in the last 29 years about 3.8 million Bangladeshis have been officially recorded as migrant laborers.
What is the volume of remittances? Between 1976 and 2002 Bangladesh received US$ 30,400 million in official remittances. In
The importance of foreign remittances in the economy of Bangladesh is widely recognized and requires little reiteration. Along with the readymade garment (RMG) sector and non-farm activities in the agricultural sector, remittances have been identified as one of the three key factors that have been responsible for reducing the overall incidence of poverty in Bangladesh.
The volume of remittances from Bangladeshi migrant workers exceeded USD 10 billion in 2011 , a figure which dwarfs the amount of yearly foreign direct assistance received by the country.
But unfortunately most of the amount of the reserved remittance is used in non-productive investment. So it is quintessential for us that we find ways to utilize this huge amount of resource we currently have.
Objective:
The objective of this paper is to find out useful and effective means for tapping these untapped remittances and using these in new entrepreneurial ventures to bolster the domestic economy of the country.
Current Context of Remittance in Bangladesh
Who is sending remittances? International remittances are sent mainly by three large, but distinct types of migrant. Firstly, there is an important, mainly American and British, Diasporas of well-educated, high or middle income earners. Secondly, Diasporas of Bangladeshi origin belonging to the low-income or unemployed segments of the population also exists in industrialized countries. Thirdly, there is a major group of migrant laborers, who are residing for a specific period of time in Middle Eastern (mainly Saudi Arabia, UAE, Kuwait), South-East Asian
(Malaysia, Singapore) and some industrialized countries. The first two groups amount to more than a million emigrants, while in the last 29 years about 3.8 million Bangladeshis have been officially recorded as migrant laborers.
What is the volume of remittances? Between 1976 and 2002 Bangladesh received US$ 30,400 million in official remittances. In
Bibliography: (2002). A study on remittance usage and utilization. Dhaka: International Organization for Migration. Bruyn, T. D. (2006). Dynamics of Remittance Utilization. Remittances and Expatriates: Development in Bangladesh (pp. 2-3). the hague: BASUG. (2008). The Micro Level Impact of Foreign Remittances on INcomes of Bangladesh. Dhaka: Centre for Policy Dialogue (CPD).