CONTRIBUTION OF REMITTANCES TO THE ECONOMIC DEVELOPMENT OF BANGLADESH

Abstract

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. Remittances are goldmine for any country, where Bangladesh besets with various problem, it is like a blessing for us. An introduction will be given to know the actual situation regarding remittances. A conceptual view of remittances, its types, channels through which it enters into Bangladesh, how international migration and remittances are connected, problem associated with remittances will be described. Impact of remittances on economic development including both microeconomic and macroeconomic determinants of Bangladesh along with South Asian countries. The inflows of remittances in Bangladesh from 1975-2011, from where it comes i.e. what is the destination of migrant workers and how remittances are used by their family members. Beyond economy its impact on politics and social Sphere of Bangladesh and positive and negative aspects are described. What types of threats came during global recession and how to cope with it in next future are subject of concern. There is no chance to avoid this topic whether the outflow of remittances deteriorate the host country’s economy. A brief discussion about this issue will be highlighted. Conclusion and some significant recommendations to raise the amount of remittances will be stated in the last chapter.