Mukti

On remittances — the Arab summer edition

Posted in economics by jrahman on April 8, 2011

When the Global Financial Crisis hit, remittances were considered to be one channel through which Bangladesh might have been hit.  As it happens, throughout 2009, remittances continued to grow at a reasonably healthy pace.  The Chart below — through the year growth in remittances — shows this.  

The chart also shows how remittance came to a screeching halt in 2010.  In an article in December 2009, Naeem Mohaiemen and I predicted this.  In that article, we asked:

Is a hostile and unstable work environment with no migrant rights and little job security resulting in large remittance flows, since Bangladesh is the only safe destination for blue-collar workers’ earnings?

Remittances seem to be recovering again — at $1.09b, remittances hit a record in March. 

Or are they? 

Rejaul Karim Byron reports in the Daily Star that Crisis in ME prompts expatriates to send money home from their savings there.  It is good to see that there is increasing awareness that strong remittance numbers mask a worrying trend.  But then again, Expatriates’ Welfare and Overseas Employment Minister Khandaker Mosharraf Hossain doesn’t seem to be perturbed — he is ‘… hopeful that remittance inflow will not be in jeopardy’ according to Mr Byron.

Meanwhile, from Naeem’s facebook wall:

আজকে জুম্মার মোনাজাত এর সময় ইমাম সাহেব কাঁদতে কাঁদতে বললেন, “আল্লাহ, লিবিয়া তে আমাদের ভাইরা আটকে আছে, ওদেরকে নিরাপদে দেশে ফিরিয়ে আনো” | কিন্তু এটা কি শুধু মোনাজাত দিয়ে হবে? সরকার কি করছে?

 (Cross-posted at UV).

Data from CEIC Asia, smoothed with 3-month moving average.

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  1. […] earlier post onr remittances argued that the strong remittance figure seen in March might be masking a gloomy […]

  2. On remittances 2 — two assessments said, on April 21, 2011 at 9:32 am

    […] } The earlier post onr remittances argued that the strong remittance figure seen in March might be masking a gloomy […]

  3. […] – asked about the likely impact of the Arab summer; […]

  4. On remittances 4 — the outlook said, on June 27, 2011 at 1:25 pm

    […] – asked about the likely impact of the Arab summer; […]


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