Remittances
Figure 1: No Copyright Infringement Intended
Context:
- India, the world’s largest recipient of remittances, received $87 billion in 2021 with the United States being the biggest source.
Further Details:
- India is followed by China, Mexico, the Philippines, and Egypt.
- remittances are projected to grow three per cent in 2022 to $ 89.6 billion.
- Flows to India (the world’s largest recipient of remittances) are expected to reach $ 87 billion, a gain of 4.6 per cent.
- Remittances to low- and middle-income countries are projected to have grown a strong 7.3 per cent to reach $589 billion in 2021.
- Remittance flows from migrants have greatly complemented government cash transfer programs to support families suffering economic hardships during the COVID-19 crisis.
About Remittances:
- A remittance is money sent to another party, usually one in another country.
- The sender is typically a foreign worker and the recipient a relative back home.
- Remittances represent one of the largest sources of income for people in low-income and developing nations, often exceeding direct investment and international development assistance.
Role of Remittances:
- Remittances play an increasingly large role in the economies of small and developing countries.
- They also play an important role in disaster relief, often exceeding official development assistance (ODA).
- They help raise the standard of living for people in low-income nations and help combat global poverty.
- Remittances are also used to help those living in less developed nations open bank accounts, a trend that helps promote economic development.
About World Bank
About |
· global partnership of five institutions working for sustainable solutions |
Name of the Five Institutions |
· International Bank for Reconstruction and Development (IBRD): provides loans, credits, and grants. · International Development Association (IDA): provides low- or no-interest loans to low-income countries. · International Finance Corporation (IFC): provides investment, advice, and asset management to companies and governments. · Multilateral Guarantee Agency (MIGA): insures lenders and investors against political risk such as war. · International Centre for the Settlement of Investment Disputes (ICSID): settles investment-disputes between investors and countries.
|
Initiation |
|
Members |
189 Countries |
Major Reports |
· Ease of Doing Business. · Human Capital Index. · World Development Report.
|