Monday, 20 September 2010

NEPAL: Remittance inflows Vital lifeline for rural poor

Remittances are the only means of survival for millions of poor households worldwide where money sent to beneficiary families enable them to afford not only the basic necessities of life which are otherwise lacking or inaccessible, but also a degree of economic empowerment. Research has corroborated that in addition to supporting domestic consumption, remittances have promoted investments in real assets including building schools and clinics, rather than formal sector financial instruments.

At the macro level, the use of remittances has helped to counter the effects of economic downturns such as political conflicts, financial crises and natural disasters, and contributed, to some extent, to the stability of recipient economies. Remittances also constitute a steady stream of foreign exchange that helps to stimulate economic growth in migrants’ countries of origin.

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