International Remittances Literature: A Study in Bangladesh during the period of 1971-2020

Abstract

Remittance has become a major contributor to the Bangladeshi economy. As the emigrant workers from Bangladesh gradually increased over the years, the amount of annual remittance to the country significantly rose. In 1974, Wage Earners' Scheme was initiated in order to help the Non-resident Bangladeshis remit their earnings home through legal channels. The scheme soon became popular among the Bangladeshis working abroad. Some $11.8 million was remitted to Bangladesh in the fiscal year of 1974–75. The amount rose to over $350 million in the fiscal year of 1980-81 and to over $750 million in the fiscal year of 1990–91. Remittance is sent formally through various ways such as demand draft, traveler's check, telegraphic transfer, postal order, direct transfer, Automatic Teller Machine. etc. Hundi or money carrier system is prevalent as informal process of remittance sending in most cases. The most popular reasons behind the preference towards Hundi system is the absence of any transaction charges, its fast delivery and the opportunity to maintain confidentiality. This research paper is designed to provide an illustrated account of what kind of research has been done on these remittances at home and abroad over the past fifty years.