Wednesday, November 10, 2010

Migration and Remittance Factbook 2011

Nepal has been ranked among the top five countries in terms of the contribution of remittance to the Gross Domestic Product (GDP).
According to the World Bank's new report "Migration and Remittance Factbook 2011", the share of remittance amounts to 23 percent of the GDP.
Among the least developed countries, Nepal is placed second behind Bangladesh. Even though the growth rate of remittance has slowed down to single digit from double digits in recent years, it has contributed significantly to the reduction of poverty in the last 15 years.
The country ranks among the top five in terms of the share of remittance of the Gross Domestic Product.
Tajikistan, Tonga, Lesotho and Moldova are ranked ahead of Nepal.
The Second Living Standard Survey had also indicated remittance as the major contributor behind the decline in people living below the poverty line from 42 percent to 31 percent.
"Remittance inflow to Nepal is estimated to reach US$ 3.5 billion in 2010. Nepal received payments worth US$ 2.98 billion in 2009," says the report.
The World Bank has estimated that remittance flows are expected to reach US$ 440 billion by the end of 2010.
"After recovering by the end of this year, remittances to developing countries will rise further in 2011 and 2012, possibly exceeding US$ 370 billion in two years' time," states the bank.
The top remittance sending countries in 2009 were the US, Saudi Arabia, Switzerland, Russia and Germany. Worldwide, the top recipient countries in 2010 are India, China, Mexico, the Philippines and France.
According to UNDP’s Human Development Report 2010 remittance was one of the factors behind Nepals remarkable success in human development in the last 40 years. Nepal emerged one of the worlds fastest movers in Human Development Index (HDI) since 1970, coming in third among 135 countries studied.
In the second part of the 19th century, emigration played a salient role in alleviating poverty in Western Europe, as about 50 million departed, mostly to America. In those days, whole families moved permanently. Nowadays, most of the migrants are male employees who travel to foreign destinations temporarily, and send a huge chunk of their earnings home. Indeed, these earnings have multiplier effects in raising productivity and reducing poverty, inter alia. Remittances to developing countries have skyrocketed, from about US $ 25 billion in 1990 to an estimated $ 125 billion in 2004 to $ 325 billion in 2010.

Remittance inflow to Nepal US$ millions
(Yrs : Amount)
2003 : 771
2004 : 823
2005 : 1,212
2006 : 1,453
2007 : 1,734
2008 : 2,727
2009 : 2,986
2010 : 3513

(Report released on Nov 2010)