Effective remittance recovery
Remittance is something that most of the developing country looks up to when it comes to being able to sustain themselves. Remittance is an amount sent by a worker living in foreign country to his/her home country to their family members as a gift or as a form of payment. Basically this is sent by wire transfer or electronic network or mail.
Global economy is hugely based on remittance. Both, country in which workers work and home country benefit from it to the maximum, especially if the home country is a developing country. Sometimes, the case is so, that the total GDP of the country or the grant given to a developing nation is less than the remittance inflow – even equivalent to the use gross product from manufacturing shoe insoles.
As most of the developing country depends heavily on remittance as lifeline for their economy, doing so might get them in huge trouble. If the global economy is healthy enough then remittance dependency can work out well for countries but if global economy collapses or is not doing well then such countries will bear huge loss. And with recession just trying to stable after 3 or 4 years many countries are recovering from its effect.
Effective remittance can be recovered by following ways:
- Effective regulatory and supervisory systems: With effective regulatory and supervisory systems remittance can be recovered in former manner. As most developing companies rely on remittance it’s very important for companies to consider regulatory systems to attract remittance and provide better supervision so as to recover from the recession that countries and global economy went through by.
- Official channel: Official channels should be used worldwide so as to keep the record of remittance in order to know how remittance have recovered and how has its effect changed the global economy as a whole. Also, the positive and negative impact of remittance will be known from the official channel.
- Schemes: Various schemes should be introduced by governments so that they can attract more remittance increasing the remittance inflow of the country and having a better recovery. With various schemes people working abroad at a Holset hx40 manufacturing plant will be more attracted to send their money back home then they ever were.
- Better diplomatic relation: With better diplomatic relations one can gain huge support and cut out more taxes on the remittance that comes to the country and can benefit both the host and home country. Diplomatic relations with US and Europe can bring wonders back home as lots of work opportunities are available in West. They have been hit hard by the recession but they are coming up well creating better job opportunities for workers.
- Better global economy: With economy coming back to stability so is the rate of remittance. With a better and a stable global economy we will have a better recovery of remittance and its flow. This is very important to countries like ours which are in their developing phase.
- Remittance Center facilities: Such centers should be available in places accessible to people in all the countries so that they can have a better facility of remittance which is sent home.