Migrant remittances describes the money that is sent home by migrants. Most of the recipients to these finances are friends and family members. ‘Migrant Remittances’ is an article that was written by Dean Yang. In this article, Yang explains different aspects that are associated with migrant remittances. His research revolves all attributed and trends exhibited by these remittances across personal and corporate scenes. He tries to look into the future of these remittances by considering past and present trends. In his submission, Yang takes various reactions from national governments, development agencies, academic economists and private sector into consideration.
In the past, international business transactions were directly related to official business transactions in the corporate world. Some of these transactions were only attached to official development assistance and portfolio investment. According to Yang, in the world today, the highest number of international transactions is experienced in the migrant remittances. In the past decade, the annual growth rate experienced in migrant remittances is approximately 12.9 %. This has exceeded the annual growth rates that are associated to development assistance and foreign direct investment which are 5.8% and 11.0 % respectively. This sharp rise has raised several questions among the world economists and attracted considerable responsiveness from public and private investors.
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Yang contends that, one of the major motivating factors behind these remittances is the exploitation of development potential in home countries of the senders. Some of the developing countries have created initiatives and agencies that are concerned with the migrant Diasporas to encourage them to embrace home development. This has assisted the migrants to acquire confidence and motivation in the remittances sent. This is because of the constructive activities that these funds are involved in. This includes domestic purposes. The funds are also used as capital to start small businesses on the recipients. Yang notes that remittances have turned out to be one of the major financial obligations for most of the migrants.
Yang contends that the relationship between remittances and recipient countries is positive. This is because most of these remittances are involved in activities that enhance economic development. Most of these remittances are involved in development activities and increase spending power among the recipients. Most of the remittances assist the recipients to acquire capital that is essential for investment purposes. In some other countries, these funds are used as sources of insurance. This is relevant in countries that are subject to natural calamities. This money is used to provide financial aid and thus absorbing the shock as a result of these calamities. All these are good indicators and they promote standards of living of the recipients and thus enhancing economic growth.
Most of the migrants have various demands for the funds that are remitted. Some of these funds are aimed at controlling the way these funds are used. According to Yang, these migrants are involved in decision regarding these funds. Some of the pressures that initiate the decision making process include the personal demand for saving in the country of origin and the destination country. Some of the motivating factors that influence the situation on the funds include the decreased rate of transaction fees on the funds remitted. This is as a result of competition among the companies that are involved in the processing of the funds.
In summary, migrant remittances are becoming a critical part of the economic dimension of various countries. This is because of the sharp increase in the funds and transactions that involved. These funds have initiated various financial innovations in the developing countries and thus creating various employment opportunities. These innovations have assisted in increasing the efficiency of the transfer of these funds and thus becoming a motivational aspect. Therefore, migrant remittance is becoming one of the fastest growing economic pillars in the world.
