Publication: Migrant Labor Remittances in the South Asia Region
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Date
2005-02
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2005-02
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Bangladesh, India, Pakistan and Sri Lanka have all experienced a sharp increase in remittances during the past decade, and are the countries among the top 20 receivers of remittances. The report provides a strategic overview of key issues relating to the remittances industry in the South Asia region, and, builds on recent Bank research on the subject, that prominently features this region. This study basically focuses on the region's distinguishing characteristics: large migrant population of semi-skilled, and unskilled workers (largely concentrated in the Arabian Gulf countries) contributing to rising remittance flows; the presence of dedicated public institutions, and government financial incentives aimed at facilitating, and providing support for temporary migration, and remittance inflows; The existence of state bank networks, with immense potential for an effective remittance financial market; and, The widespread use of trade-related informal remittance channels by both legal, and illegal migrants. The increase in remittance volumes, has renewed academic, and public policy interest in their potential to reduce poverty, and economic vulnerability, improve family welfare, and stimulate local economic development, in the face of lower foreign direct investment (FDI) flows. The study analyzes the impact of international remittances on poverty, using a growth-poverty model, which assumes that economic growth - as measured by increases in mean per capita income - will reduce poverty. It finds that, when estimated values for unofficial remittances are added to official remittance figures, total remittances reduce the level of poverty in south Asia. Recommendations to maximize the network's full potential suggest among others: shared payments systems platforms; public-private partnerships across infrastructure, products, and services are necessary for countries in the region that seek the types of gains attained elsewhere; cross selling, i.e., it is essential that as the profitability of the conventional remittance business model continues to decline, formal financial institutions invest in cross-selling complimentary financial services, and products.
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“World Bank. 2005. Migrant Labor Remittances in the South Asia Region. © World Bank. http://hdl.handle.net/10986/8513 License: CC BY 3.0 IGO.”
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Publication Migrant Labor Remittances in South Asia(Washington, DC: World Bank, 2005)This paper provides a strategic overview of key issues relating to the remittance industry in the South Asia region. The paper builds on recent research on remittances that prominently features the South Asia region. Rather than duplicate that work, this study focuses only on the region's distinguishing characteristics, namely: a large migrant population of semiskilled and unskilled workers largely concentrated in the Persian Gulf countries, particularly Saudi Arabia and the United Arab Emirates, contributing to rising remittance flows; the presence of dedicated public institutions and government financial incentives aimed at facilitating and providing support for temporary migration and remittance inflows; the existence of large state bank branch networks with immense potential for a more effective and efficient remittance financial market; and the widespread use of trade-related informal remittance channels by both legal and illegal migrants.Publication The Malaysia-Indonesia Remittance Corridor : Making Formal Transfers the Best Option for Women and Undocumented Migrants(Washington, DC : World Bank, 2008)The corridor between Malaysia and Indonesia is the second largest remittance outflow for Malaysia and the largest remittance inflow for Indonesia. 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The Sri Lankan Central Bank is now debating the following key issues: the developmental impact of remittances; the high transaction costs associated with remittances; and the level of transparency and accountability in the remittance industry, especially the informal remittance sector. This paper highlights the key policy issues associated with each of these aspects of remittances with the objective of improving the public and private infrastructure for current and future flows. Building on recent World Bank research on remittances that prominently features South Asia, it has been prepared in recognition of the development potential of these flows. It discusses some of the key issues relating to the remittance industry in Sri Lanka. This paper complements the existing literature on migrant labor remittances to Sri Lanka and extends that literature by providing specific policy-relevant guidance on short and long-term policies for enhance enhancing the quality and outreach of rural remittance infrastructure.
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