India top remittance-receiving country in 2016: UN report

India top remittance-receiving country in 2016: UN report

Note4Students:

News card contains various important information ranging from remittance flows, global report to their overall effect on people as well as economy. Info can come handy in Mains. Make notes from this.

From UPSC perspective, following things are important:

Prelims level: UN-IFAD, its report being discussed, Sustainable Development Goals (SDGs) migrants and countries associated with them, geographical features related to countries mentioned.

Mains level: Impact of remittances on lives of people, economy and world as a whole.


News:

  1. Indians working across the globe sent home USD 62.7 billion last year, making India the top remittance-receiving country surpassing China, according to a UN report
  2. The ‘One Family at a Time’ study by the UN International Fund for Agricultural Development (IFAD) said about 200 million migrants globally sent more than USD 445 million in 2016 as remittances to their families, helping to lift millions out of poverty

Trends in remittance flows:

  1. The study is the first-ever of a 10-year trend in migration and remittance flows over the period 2007-2016
  2. Remittance flows have grown over the last decade at a rate averaging 4.2 per cent annually
  3. It said 80 per cent of remittances are received by 23 countries, led by India, China, the Philippines, Mexico and Pakistan
  4. The top 10 sending countries account for almost half of annual flows, led by the US, Saudi Arabia and Russia
  5. Asia remains the main remittance-receiving region, with 55 per cent of the global flows and 41 per cent of total migrants
  6. Over the past decade, remittances to Asia and the Pacific increased by 87 per cent

Reduction in poverty:

  1. The study added that the amount of money migrants send to their families in developing countries has risen by 51 per cent over the past decade
  2. This dramatic increase in the amount of money migrants sent home to their families in developing countries is helping to lift millions out of poverty and in attaining the Sustainable Development Goals (SDG)
  3. About 40 per cent of remittances – USD 200 billion – are sent to rural areas where the majority of poor people live
  4. The money is spent on food, health care, better educational opportunities and improved housing and sanitation
  5. The small amounts of USD 200 or USD 300 that each migrant sends home make up about 60 per cent of the family’s household income, and this makes an enormous difference in their lives and the communities in which they live

Impacts on the global economy and political landscape:

  1. Currently, about 200 million migrant workers support some 800 million family members globally
  2. In 2017, an expected one-in-seven people globally will be involved in either sending or receiving more than USD 450 billion in remittances
  3. Total migrant earnings are estimated at USD 3 trillion annually, approximately 85 per cent of which remains in the host countries
  4. The money sent home averages less than one per cent of their host’s GDP
  5. Taken together, these individual remittances account for more than three times the combined official development assistance (ODA) from all sources, and more than the total foreign direct investment to almost every low-and middle-income country

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