Remittance as a Driver for Growth and Poverty Reduction in Asia
Remittances, particularly in Asia, have far-reaching impact in many countries. They give direct, immediate, and significant benefits not just to overseas workers and their families, but to their countries of origin as well. They have become a major source of foreign exchange and contribute a large share to the gross domestic products (GDP) of many developing countries (DCs). Moreover, remittances are the second largest source of external funding for many DCs, and are more stable than official development assistance. This presentation offers guidance on policy issues that can help sustain these benefits while mitigating the adverse effects of migration and remittances, which include the possibility of brain drain and lack of incentive to work among remittance recipients.