Is “Migrants’ Remittances” a Potential Tool for the Development of Bangladesh Economy?

There is a renewed interest in Private Development Assistance (PDA) as it fills an important gap among countries in South and West Asia, North Africa and Central America - countries that receive relatively little official aid and private direct investment. Accordingly, the issues of remittances and migration in Bangladesh have also received an increasing amount of attention in recent years for the significant contribution those are making in the economy. Currently, the country is enjoying a surplus current account balance mainly due to the boost in inward remittances flow. However, the officially transferred remittances are considered to be grossly underestimating the actual level of remittances. Studies reveal that majority portion of the remittances - official and unofficial altogether - is used for improving recipients' standard of living, providing resources for food, housing improvements, education and small household appliances. ln reality, it is still not sufficient to determine unambiguously the impact of remittances on the broader society of Bangladesh because most studies cover isolated small areas rather that a nation-wide survey. Nonetheless, this paper is based on the hypothesis that inward remittances' have positive contribution free development of Bangladesh economy and accordingly, Discusses the dynamics of remittances. From the analyses - at both +p micro and macro levels - the hypothesis has assumed to be