This new report in the IOM Migration Research Series looks at the links between international migration and development and shows how several Asian countries have successfully mobilized their diaspora to promote development at home.
According to official data, worldwide remittances last year amounted to US$80 billion - more than Foreign Direct Investment (FDI) and Foreign Development Assistance (FDA). The report notes that in some Asian countries, such as Sri Lanka, overseas remittances have now become 'the backbone of the country's economy.'
The report states that more than 50% of remittances are not sent through official channels. In Bangladesh, 40% of all remittances are sent through informal channels, 4.6% are remitted through friends and relatives, and 8% are taken by migrants when they return home.
In Pakistan, senior bankers estimate the real flow of remittances at between US$8 to $10 billion, of which only US$1 billion is sent through official channels.
In 2002, the Bank of Vietnam put the total official remittances at US$2.4 billion, double the US$1.2 billion recorded in 1998, but only half of the total US$0.4 billion sent home annually. This money is sent by some 100,000 Vietnamese employed overseas as construction and domestic workers in South Korea, Japan, Malaysia, Taiwan and Russia, and by the 2.5 million Vietnamese who have settled permanently overseas.
In the Philippines, the Central Bank reports that the amount of remittances has grown from US$1 billion in 1989 to US$8 billion in 2002.
In China, economists believe that expatriates account for about half of the country's inward foreign direct investment.
The report states that there is now unprecedented competition among industrialized nations to attract highly skilled workers as permanent or temporary settlers. In this process, many less developed nations are experiencing a significant net migration loss of young, well-educated and skilled nationals.
To counter this brain drain, countries like India are developing programmes to encourage qualified expatriates not just to invest in India, but also to return home and to use their skills acquired abroad to benefit India's economic and social development.
2003 - 42 Pages ISBN/ISSN: 1607-338X Price: US $16.00
Order a copy or View the PDF format |