Unit 4 - Bangladesh - Remittances, Financial Flow

Question 1

Where is Bangladesh?

Answer 1

• South Asia

- border with India

Question 2

Why is Bangladesh a good example for remittances, financial flow?

Answer 2

• Bangladesh has a decent amount of population which migrated abroad for better living conditions, and to escape poverty - they send money back to their families in Bangladesh to give them financial support

Question 3

How large is the sum of remittances to Bangladesh in 2015?

Answer 3

• according to the World Bank, Bangladesh is now one of the largest recipients of remittance with $15 billion as of June 2015

Question 4

What is the history of remittances to Bangladesh?

Answer 4

• in 1974, Wage Earners’ Scheme was initiated in order to help non-resident Bangladeshis to remit their earnings home through legal channels

Question 5

What are the destinations of remittances to Bangladesh?

Answer 5

• the Kingdom of Saudi Arabia has been the largest source of foreign remittance to Bangladesh
• the UK, the USA and Germany are also popular destinations

Question 6

How does the remittance sending system function in Bangladesh?

Answer 6

• formal and informal systems to send remittances back
• Formal system: demand draft, direct transfer, postal order, etc.
• Informal system: Hundi, money carrier system

Question 7

What are the pull factors of other countries in comparison to Bangladesh?

Answer 7

• Saudi Arabia: near by (easy to transport), higher income, etc.
• Western countries: better living quality, more opportunities, education, etc.

Question 8

What are remittances?

Answer 8

• the transfer of money by a foreign worker to an individual in their home country