Abstract
The recent surge in the scale of remittances has attracted attention of both policymakers and academics in both developed and developing countries. Remittances are more predictable and stable than both the foreign develop- ment investment (FDI) and official development assistance (ODA) flows. As remittances are received by the families, they are especially more effective. Leveraging the remittances for enterprise development can thus provide a viable option to accelerate economic growth in the South Asian region and address the challenge of poverty alleviation through labour-intensive, productive and innovative employment generation. The contributions of diaspora to global economic development due to their potentials of link- ing their home country with their host countries have been increasingly acknowledged. Diasporas are opening new trade opportunities for small and medium enterprises (SMEs) in their home countries and creating new conduits for export from host countries. However, it is important to create favourable conditions in their home countries to attract diaspora engage- ment through investment, knowledge, skills and technology transfer.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
Similar content being viewed by others
References
Asian Development Bank (ADB) (2009) Key indicator for Asia and the Padfic 2009 (40th edition), Special chapter on Enterprises in Asia: fostering dynamism in SMEs, Philippines: Asian Development Bank.
A. Banerjee and E. Duflo (2011) Poor economics: a radical way of rethinking poverty, New York: Public Affairs.
A. Ferrari (2008) Increasing access to rural finance in Bangladesh: the forgotten ‘Missing Middle’, Washington DC: World Bank.
Bangladesh Bank (2010) ‘Banking Regulation and Policy Department Circular No. 10’, (Dhaka, 10 March 2010). Available [from http://www.bangladesh-bank.org/openpdf. php?urlpdf=mediaroom/circulars/brpd/mar 10201 Obrpd 10e.pdf].
Bangladesh Bank (2012) Bangladesh Bank Quarterly January-March 2012, Vol. 9, No. 3 Dhaka: Bangladesh Bank.
Bangladesh Bureau of Statistics: Preliminary household income and expenditure survey 2010, Dhaka: Statistics Division, Ministry of Planning, 2011.
Consultative Group to Assist the Poor (CGAP)(2011) Financial access 2010: the state of financial inclusion through crisis. A report prepared by CGAP, Washington, DC: CGAP.
D. Ratha and S. Mohapatra (2011) ‘Preliminary estimates of diaspora savings’, Migration and Development Brief 14, Washington, DC: World Bank.
D. Ratha (2007) Leveraging remittances for development, Migration Policy Institute, Washington, DC: World Bank.
D. Stanton and T. Polatajko (2001) Linkages: their value and donor approaches to them, England: The Department for International Development.
F. Chowdhury (2007) Customised form of finance for SMEs, Seminar proceedings, National SME Development Program for OIC Member Countries, Dhaka: Federation of Bangladesh Chamber of Commerce and Industries.
G. Hugo, ‘Migration in the Asia pacific Region’, A paper prepared under Policy Analysis and Research Programme of Global Commission on International Migration, National Centre for GIS Application, University of Adelaide, Australia, 2005.
Government of Pakistan: Pakistan economic survey 2010–2011, Economic Adviser’s Wing, Finance Division, Islamabad: Ministry of Finance, 2011.
Government of the People’s Republic of Bangladesh (GOB): Bangladesh Economic Review 2010, Finance Division, Dhaka: Economic Adviser’s Wing, Finance Division, Ministry of Finance, 2011.
Government of the People’s Republic of Bangladesh (GOB): Bangladesh Economic Review 2012, Finance Division, Dhaka: Economic Adviser’s Wing, Finance Division, Ministry of Finance, 2012.
Government of the Peoples’ Republic of Bangladesh, Bangladesh Economic Review 2006, Dhaka: Economic Adviser’s Wing, Finance Division, Ministry of Finance, 2007.
J. Nelson (2007) Building linkages for competitive and responsive entrepreneur ship, USA: The United Nations Industrial Development Organisation (UNIDO) and the Fellows of Harvard College, John F. Kennedy School of Business, Harvard University, 2007.
JA. Schumpeter (1976) Capitalism, socialism and democracy, 4th edn, London: Unwin, 1976.
J. Schumpeter (2006) Capitalism, Socialism and Democracy, New York, NY: Harper and Row cited in S. Venkatesraman (2004) Regional transformation through technological entrepreneurship, Journal of Business Venturing 19: 153–167.
J. Wahba and Y. Zenou (2011) ‘Out of Sight, out of mind: migration, entrepreneur-ship and social capital’, Centre for Research and Analysis of Migration (CReAM) Discussion Paper 30/09, London: CReAM, Department of Economics.
K. Newland and H. Tanaka (2010) Mobilising diaspora entrepreneurship for development, Washington, DC: Migration Policy Institute.
L. Kiapper, L. Leaven and R. Rajan (2006) ‘Entry regulation as barrier to entrepreneur-ship, ‘journal of Financial Economics, Vol. 82, No.3, pp. 591–629.
L. Parvin, J. Jinrong and W. Rahman (2012) Women entrepreneurship development in Bangladesh: what are the challenges ahead? African journal of Business Management, Vol. 6, No. 11, pp. 3862–71.
M. Khalique (2011) ‘Do Malaysia and Pakistan are suitable for a comparative study of SMEs: an intellectual capital perspective?’ Interdisciplinary Journal of Contemporary Research in Business, Vol. 3, No. 8, pp. 98–107.
M. A. Miah (2007) ‘An Overview of SMEs in Bangladesh,’ SME Sector Development Program, Dhaka: Ministry of Industries, Government of the People’s Republic of Bangladesh, 2007.
M.R. Cornstock, M. Iannove and R. Bhatia (2009) Maximising the value of remittances for economic development, 2009. (Available at www2.gtz.de/wbf/library/ key_smepromotion.asp?comments...6, accessed 6 July 2012).
M. Orozco (2010) ‘Migration, remittances and assets in Bangladesh: considerations about their intersection and development policy recommendation’, A report commissioned by International Organisation for Migration (IOM), Geneva: IOM.
M. Sharma and H. Zaman (2009) ‘Who migrates overseas and is it worth their while? An assessment of household survey data from Bangladesh’, The World Bank, Policy Research Working Paper Series: 5018, Washington, DC: World Bank.
R. Afsar (June 2009) ‘Unravelling the Vicious Cycle of Labour Recruitment: Labour Migration from Bangladesh to the Gulf States’, Working Paper 63, Geneva: International Labour Organization.
R. Afsar, M. Yunus and A.B.M. Islam, (2000) Are migrants chasing after perilous illusion? Dhaka: International Organization for Migration.
R. Amjad, ‘Remittances and Development in South Asia’, South Asian Journal, 6 (2005), available at www.southasianmedia.net/Magazine/Journal/6_remittances. htp, accessed 6 June 2012.
R. Kloosterman and J. Rath, J. (eds) Immigrant entrepreneurs: venturing abroad in the age of globalisation, New York: New York University Press and Oxford: Berg Publishing, pp. 61–78.
R. Zavatta (2008) Financing technology, entrepreneurs and SMEs in developing countries, challenges and opportunities, Washington, DC: The International Bank for Reconstruction and Development/World Bank.
S. De (2012) ‘Financing SMEs in India’, Cover Story, ISBINSIGHT, No. 9, Winter 09–10.
S. Mahmood (2008) ‘Corporate governance and business ethics for SME’s in developing countries: challenges and way forward’, A paper presented at Islamabad Conference on Corporate Governance, Pakistan.
South Asian Association for Regional Cooperation (SAARC) Human Resource Development Centre (2010) effectiveness of HRD for developing SMEs in South Asia, A report prepared by the ALPH Consultants and Advocates, Islamabad, Pakistan: SAARC Human Resource Development Centre, 2010.
T. Nenova, C.T Niang and A. Ahmad (2009) Bringing finance to Pakistan’s poor, a study of access to finance to underserved and small enterprises, Washington, DC: World Bank.
T Siddiqui and C.R. Abrar (2003) ‘Migrant worker remittances and microfinance in Bangladesh’, Working Paper No. 38, Geneva: International Labour Organisation, 2003.
The International Bank for Reconstruction and Development (IBRD), The World Bank (2008) ‘Finance for all? Policies for expanding finances’, A World Bank Policy Research Report, Washington, DC: World Bank.
The Micro Finance Initiative for Asia (MIFA) (2009) Bangladesh: microfinance and financial sector diagnostic study, Final report, Washington, DC: International Financial Corporation and Frankfurt am Main: KfW Bankengruppe.
The United Nations Conference on Trade and Development (UNCTAD) (2012) Harnessing remittances and diaspora knowledge for developing LDCs’ productive capacities, Geneva: UNCTAD.
V. Wadhwa, S. AnnaLee Saxenian, R. Freeman, G. Gereffi and A. Salkever (2009) America’s loss is the world’s gain: America’s new immigrant entrepreneurs. Part IV, Kansas City, MO: Kauffman Foundation.
W.J. Baumol, R.E. Litan and C.J. Schramm (2007) Good capitalism, bad capitalism and the economics of growth and prosperity. New Haven, CT: Yale University Press.
World Bank (2004) Global Development Finance 2004: Harnessing Cyclical Gains, Washington, DC: World Bank.
World Bank (2006) Global economic prospects: economic implications of remittances and migration, Washington, DC: World Bank.
World Bank (2008) Global Development Finance 2007, Washington, DC: World Bank Group.
World Bank (2012) Migration and development brief, No. 18, prepared by D. Ratha and A. Silwal, Migration and Remittances Unit, Washington, DC: World Bank.
World Bank Group: Enterprise survey database 2010 [available at http://www.enterprisesurvey.org, accessed 9 August 2012].
Z. Bakht, (2006) ‘Development of SME Sector in Bangladesh’, A paper prepared for Review of Bangladesh Development, Centre for Policy Dialogue.
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Copyright information
© 2014 Rita Afsar
About this chapter
Cite this chapter
Afsar, R. (2014). Remittances and SME Development: Reflections from South Asia. In: Rahman, M.M., Yong, T.T., Ullah, A.K.M.A. (eds) Migrant Remittances in South Asia. International Political Economy Series. Palgrave Macmillan, London. https://doi.org/10.1057/9781137350800_7
Download citation
DOI: https://doi.org/10.1057/9781137350800_7
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-46858-4
Online ISBN: 978-1-137-35080-0
eBook Packages: Palgrave Intern. Relations & Development CollectionPolitical Science and International Studies (R0)