Microfinance Institutions Will Be an Important Instrument to Earn More Remittance, Send Remittance and Utilize Remittance in Bangladesh

Abstract:     
Remittance is called the life blood of Bangladesh economy. In Bangladesh it contributes much in reducing poverty. In a study of Institute of Microfinance led by Professor S.R. Osmani, we have seen that 4.8% poverty of Bangladesh solely reduced by foreign remittance. Microcredit is another important tool in reducing poverty. In the same study, we have seen that microcredit solely reduced 4% poverty in Bangladesh. In Bangladesh microcredit will be an important tool in earning remittance. Microfinance Institutions in Bangladesh can play its role in two stages – pre-stage and post stage. In pre stage MFIs can work as an important source of money for migration and MFIs can also trained migrant worker according to their importers’ demand which helps workers to improve their efficiency. This helps Bangladesh to earn more remittance which helps in reducing poverty. In post stages MFIs can help migrant worker to send money and also work for proper utilization of this remitted money. This helps to create entrepreneurs which help to create employment, which help to reduce poverty in Bangladesh. This whole process is discussed elaborately in this paper.

Number of Pages in PDF File: 57

Keywords: Bangladesh, microfinance institutions, microcredit, international migration, migrant workers, remittances, development

JEL Classification: F22, F24

working papers series