Emerging Asia pp 116-122 | Cite as
The Importance of Remittances in India and South Asia
Abstract
Despite the notable improvements in the economic climates and growth prospects of many developing economies in Asia, poverty remains a complex and persistent issue confronting policymakers. Poverty estimates published by the World Bank in 2008 reveal that in 2005 nearly 1.4 billion people in the developing world were living on less than USD 1.25 a day.2 While acknowledging that there has been considerable progress in reducing poverty levels – the corresponding numbers in absolute poverty were about 1.9 billion in 1981 – much remains to be done to ensure that the benefits of economic growth are more evenly distributed, in order to eradicate poverty worldwide.
Keywords
Private Capital High Transaction Cost South Asian Country Official Development Assistance Term DebtPreview
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20 The Importance of Remittances in India and South Asia
- 1. Based on S. Gopalan and R. S. Rajan (2010). “External Financing in South Asia: The Remittances Option”, ARTNET Policy Brief No. 23, UN-ESCAP, Thailand, January 23.Google Scholar
- 3. See World Bank (2010). Global Development Finance 2010, World Bank: Washington D.C.CrossRefGoogle Scholar
- 4. World Bank (2009). Global Development Finance 2009, World Bank: Washington D.C.CrossRefGoogle Scholar
- 10. Some have argued that the large inflows of remittances into a particular country could result in a “Dutch Disease” type of situation, where the recipient country experiences an overvalued real exchange rate (due to an appreciation or strengthening of its currency), which would lead to a loss of export competitiveness, which would in turn make the production of such tradable goods less profitable. However, there are a growing number of empirical studies that seem to suggest that this concern is misplaced. For an overview, see World Bank (2006). Global Economic Prospects 2006: Economic Implications of Remittances and Migration, World Bank: Washington D.C.Google Scholar