RP among world’s top 5 remittance recipients in 2007

Matthew Heyes / 24 March 9.30pm / Population

http://www.abs-cbnnews.com/storypage.aspx?StoryId=112970

This article looks at the levels of emigration from developing countries into rich developed ones. Rich countries are still the main source of remittances. The United States is the largest with $42 billion in recorded outward flows in 2006. Saudi Arabia ranks second, followed by Switzerland and Germany. For 2007, recorded remittance flows worldwide were estimated at $318 billion, of which $240 billion went to developing countries.

Remittances are transfers of money by foreign workers to their home countries. The top 5 remittance recipients are listed as India, China, Mexico, the Philippines and France. This however refers to the total of money sent back to that country. If you were to look at it as a share of gross domestic product (GDP), however, smaller countries such as Tajikistan and Moldova had the highest with 36 percent of GDP; Tonga, 32 percent; the Kyrgyz Republic, 27 percent; and Honduras, 26 percent. In many developing countries, remittances provide a lifeline for the poor. They are often an essential source of foreign exchange and a stabilizing force for the economy in turbulent times. Access to financial services are promoted which increase financialo and social inclusion

In particular levels of skilled emigration are discussed. Even though people can study for skilled jobs in developing countries there is often not the market in which to offer employment upon qualifying. These people therefore have to look elsewhere for a well-paid position. Almost all the physicians trained in Grenada and Dominica have emigrated abroad. St. Lucia, Cape Verde, Fiji, São Tomé and Principe and Liberia are also among the countries with the highest emigration rates of physicians.