Economic Contribution of Migrant Workers in Bangladesh

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Introduction Bangladesh is located in South Asia. It is the seventh most populous country in the world and is mostly densely inhabited. The poverty level, however, has fallen by more than 20%, helped by its prominent agricultural sector. The Bangladeshi economy is helped by its big garment sector, which contributes more than two-thirds of the country’s trade. The major challenge to prosperous growth is the vulnerability of the land to cyclones and floods. However, even with such challenges, Bangladesh has experienced a growth rate of 5% since 1990. This growth has been helped by remittances from expatriates as well. Since 1975, there has been a two-fold increase in the per-capita GDP. During the 2008 global economic recession,…show more content…
Among all, the biggest impediment is the speed of transactions and cost of transaction. In cases, it takes more than a week to send a foreign remittance to beneficiary. Average cost is 20 SAR for a remittance from Saudi Arabia to Bangladesh. Banks drives the legal channel for remittance mobilization. Top 3 remittance receiver banks in market are given in Table 1.1. Table 1.1 Monthly Inward Remittances | |Sl. |BANK |August, 2008 (in USD Million) | | | |1 |Sonali Bank |104.700 | | | |2 |Agrani Bank |66.091 | | | |3 |Janata Bank |64.050 | | Whilst data on Non Resident Bangladesh (NRB) remittances coming into Bangladesh are readily available, projections for local remittances are difficult to determine. The figures in USD given in the Table 1.2 are approximate. Table 1.2: Local and Foreign Remittance Comparison in USD | |07-08 (No.) in USD |2008-9
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