Impact of remittance inflows into developing economies highlighted

Bangladesh Bank Governor Dr. Atiur Rahman addressed the Frankfurt School of Finance & Management, Frankfurt faculty Monday on impact of remittance inflows into developing economies.
In his presentation, Governor Rahman highlighted significance of wage earners' remittances in socioeconomic development of Bangladesh.
He mentioned that Bangladesh's remittance receipts from workers abroad represent not so much of 'brain' drain as 'brawn' drain, in as much as almost 99 percent of inflows are from blue collar workers in unskilled and low skilled low wage jobs; not significantly straining labor supply in the home market; thanks to the available large pool of working age adults in the population of Bangladesh. Highly skilled and educated professionals from Bangladesh are also staying and working abroad in increasing numbers, mainly because of limited immediate scope of use of their advanced knowhow and skills in the domestic economy. Remittance inflows from the blue and white collar Bangladeshi Diasporas abroad are helping promote inclusive growth by expanding the domestic demand base, and the responding domestic output base on the supply side, he added.
Referring to recent survey information, Governor Rahman pointed out that a substantial part of remittances go into financial and non-financial investments including in SMEs.
Remittance receiving households enjoy better socioeconomic conditions in terms of land & house ownership, access to safe drinking water, savings & investments, access to health services & education, etc. He further added that the inflows of remittances from workers abroad to their families mostly in the rural communities have been instrumental in the transformation of farm and off-farm output practices in these communities with tools and equipment increasingly replacing manual labor; rural lifestyles are likewise transforming fast with remittance recipient households affording them advancement opportunities by way of better education, healthcare, mobility, and so forth.
Governor's address at Frankfurt School was preceded by a MOU signing ceremony between Bangladesh Bank and Frankfurt School on 'Cooperation on Human Resource Development' for Bangladesh Bank Training Academy (BBTA) and Bangladesh Institute of Bank Management (BIBM).