Developing countries try to use different ways like encouraging foreign investors or industrialists to invest to bring more foreign exchange to help to their economic growth. For the last 20 years, remittance has gradually become a major factor for developing countries in Asia and Africa. UK is a place where expatriates of many nations live. Expatriates from South Asia, China, Africa and the Caribbean live in huge number in UK. Many of them send money to their families and relatives in those countries. However, until now, no large scale survey was done about this matter. The Department for International Development (DFID) has carried out a survey about the remittance sent by people belonging to the ethnic minority in UK. You can read the result of the survey by simply visiting this link. 7,051 households responded to the survey.
According to official sources, international remittance is growing very fast. In fact, for some countries like Ghana remittance has become the lifeline of economy. In the case of Ghana, remittance provides 10%-15% of the national income. Fore many poor countries, remittance has become better income than investment of foreign companies. The top five recipient countries are Nigeria (17%), India( 14%), Pakistan(10%), Jamaica (7%), and Ghana( 5%).
This survey informs that last year, a typical South Asian family sent nearly £ 1000 to their countries of origin. On the other hand, an African one sent about £ 910. The expatriates of Caribbean and China sent total less than £ 870. This survey also observes that this money were mainly sent for parents and 31% pf senders said that the money would be used for buying food, 21% said it would be used for health related bills and 17% informed that the money would contribute in helping educational and other expenses.
So, Remittance has another important role of removing poverty and increasing financial ability of families.
What is so interesting to me is the fact that Indian families in UK sent more money than Chinese families. Chinese people are normally portrayed as successful business in many parts of the world. The economy of China is much bigger than India too. You may argue that more Indians live in UK than Chinese. Yes, you are right. However, I am still surprised that the average money sent by Indian families is much more than the average of Chinese families.
What is the reason for it? Do you have any idea?
Comment Preview