ePaper

Tuesday, January 23, 2018

Ensure better use of remittance

  • Print

Remittances sent by Bangladeshi nationals working abroad have been a major pillar of foreign exchange earnings for the country for quite a long time now and that Bangladesh now stands on a strong economic footing is largely attributable to the robustness of this sector. Even though it is not possible to measure the exact amount of remittance Bangladeshis send home as not all of it comes through formal banking channels, the sum received officially is huge. It is a matter of gratification that remittance inflow to the country is touching new heights every passing year notwithstanding multifarious limitations and challenges.

Nevertheless, the foreign exchange remitted by Bangladeshis working outside the country is used predominantly for family consumption and develop the family by paying school fees, building houses whereas a more planned use of the received money, especially investment in productive sectors, can greatly accelerate the growth of the national economy. Various empirical studies have found that foreign remittances can play a more effective role than foreign aid funding in socio-economic development of a country.

This is because remittances go directly to their targets, while, estimates show that, less that 10 percent of the funds coming as official development assistance actually benefit the most vulnerable populations in some cases. The rest 90 percent or so enter the pockets of government officials and even foreign aid workers who are sometimes paid exceedingly highly to live in luxury in the midst of the poverty they are likely to eliminate. We expect the policymakers to take this aspect into account and devise policies in such ways so that the country can make the most out of the huge remittance it receives every year.

Another important issue that needs sincere pondering is that the bulk, if not all, of the foreign remittance is sent by people who belong to the lower strata of society. They go abroad by borrowing money and leaving their family entirely dependent on their income. Thus it is quite natural the money they send would be used primarily for family purposes.

We urge the government to go for robust policies to attract the expatriates who, along with their family, live in foreign lands in richness and are more potential investors. The government will have to incorporate the diaspora community more in the country's political system to make these people inclined towards investing in their motherland in order to harness the full potential of remittance flows.

More News For this Category

Bangladesh's Presidents . . . and their stories

| By and Syed Badrul Ahsan
Now that speculation is beginning to make the rounds of who will succeed President Abdul Hamid or whether he will come by a second term as head of state,
Bangladesh's Presidents . . . and their stories

Will Trump snap Japan's feeble tightrope?

| By and Harry Dempsey
The unhinged madman foreign policy of US President Donald Trump means Tokyo must walk a tightrope to manage the US-Japan alliance. On security policy, on trade and on North
Will Trump snap Japan's feeble tightrope?

Review the Bank Company Act

| By
On 16 January last, the Bank Company (Amendment) Bill was passed in the Jatiya Sangsad. It was finally passed in the face of categorical opposition from the central bank,

Let the young gain knowledge

| By
It appears that the government has taken up a scheme to set up 560 model mosques in upazilas across the country. That is certainly a welcome move and one

Stigma of child sex abuse in Muslim societies

| By and Nazarul Islam
Muslim societies are stuck in an awkward freeze. Or perhaps, in a unique bind. Wrapped in layers of their past glories and suave military conquests, they are reluctant today,

2018: What to do to improve academic ambience in India

| By and Sujayendra Das
The end of the year 2017 was a pathetic year of Indian education. Especially towards the end of last year we found that in some primary section of private

Free Narayanganj of terror

| By
We are happy to know that Narayanganj Mayor Selina Hayat Ivy is out of danger. She has been in hospital here in the capital since the concerted attack made

The lives we lead

| By
Life is changing for us here in Bangladesh. Indeed, it is becoming increasingly difficult, in a very wide-ranging manner. We will not go into all the details, but suffice

Blockchain technology and Bitcoin currency

| By and M S Siddiqui
The present advancement of technology has changes the financial sector rapidly and the century old paper money is under challenge due to introduction of digital money. The electronic transfer
Blockchain technology and Bitcoin currency

Newspapers' roles in enhancing our intellectual worth

| By and Mahfuz Ul Hasib Chowdhury
Newspapers keep us updated with the latest incidents happening across the world. This functionality by newspapers is known to all but very few people are aware of the fact

© 2018 The Asian Age