Bangladesh emerges world's fifth largest remittance recipient state

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FE Report
Bangladesh has emerged as one of the top ten remittances-receiving countries in the world in terms of volume after migrants and expatriates sent US5.48 billion last year, according to Global Remittances Guide.
Of ten nations, the country secured the fifth position putting behind Pakistan, which received nearly $5.40 billion in 2006.
India ($25.70 billion) topped the list followed by Mexico ($24.7 billion) and China ($22.4 billion) in 2006.
"These data only capture remittances sent through channels such as banks and money-transfer operators. Currently, no uniform and authoritative historical data on informal flows exist," said the guide, published by Migration Policy Institute (MPI), a Washington think tank.
"Given the widespread use of informal remittance channels in many countries, the remittance data presented in this guide should be regarded as underestimates of the total flows," the guide added.
The International Organisation for Migration (IOM), a Geneva-based inter-governmental body, says the actual amount of annual remittances flowing into Bangladesh is much higher, as more than 50 per cent of the money comes through unofficial channels.
Economists say, remittances are increasingly playing an important role in the Bangladesh economy, as these are only second to exports and have dwarfed the country's external assistance and foreign investments altogether.
In a forthcoming report on poverty, the World Bank showed that poverty rate fell faster in Bangladesh's Dhaka, Sylhet and Chittagong regions between 2000 and 2005, thanks mainly to the robust remittances flowing into the areas.
By contrast, the bank report noted, poverty rate either increased or stagnated in the country's western region-Khulna, Barisal and Rajshahi--as the number of migrant workers in these divisions is far lower than that of the country's eastern region. The report called the phenomenon the East-West divide.
An estimated $14.9 billion went to the Philippines last year, making it the fourth biggest remittance recipient in the world, says the guide. Pakistan, which drew $5.4 billion in remittances, occupied the sixth position on the list.
Morocco, an African nation with its large diaspora, is behind Bangladesh, while Egypt, Lebanon and Vietnam ranked eighth, ninth and 10th positions respectively, according to the MPI ranking.
Officially recorded flows totalled over US$280 billion worldwide in 2006. Nearly three-quarters were sent to developing countries. In 22 countries, remittances were equal to more than 10 per cent of GDP in 2006; in six countries they were equal to more than 20 per cent of GDP.
At 9.1 per cent, Bangladesh, however, failed to make it on the list of top ten remittances-receiving nations having the highest share of GDP.