New Delhi | One of the largest sources of rural household income streams is via remittances from migrant workers who send billions of dollars back home staying far away from their homes, says a new book.
The global flow of millions of migrants who leave emerging countries to work in more established economies – and the remittances they send back home – have become one of the biggest drivers of economic change in the developing rural world, says Vijay Mahajan in his book “Rise of Rural Consumers in Developing Countries”.
“One of the largest sources of rural household income streams is via remittances from migrant workers. They might work in cities a few hundred miles from their hometowns, or thousands of miles away in other countries. Regardless of how far they go, they send billions of dollars back home,” he says quoting World Bank data.
According to Mahajan, remittances are lifting rural consumers.
“International remittances rose to an estimated USD 601 billion in 2015, with roughly three-quarters of that total flowing back to developing countries, according to World Bank data. The World Bank’s revised data for 2014 showed global remittances at USD 592.9 billion, with the Rural Top 10 countries receiving USD 254.8 billion – 43 per cent of the total, with a significant amount going to rural areas,” he says.
Mahajan, John P Harbin Centennial Chair in Business at the McCombs School of Business, University of Texas, highlights the expanding consumer power of rural markets in developing countries in his book, published by Sage.