Governing the Remittance Landscape for Development: Policies and Actors in Bangladesh

Abstract

Globally there has been much talk and policy debate about different dimensions of migration governance such as the regulation of private recruitment agencies and intermediaries and the regulation of criminal activities and exploitations linked to migrant trafficking. However, remittance governance rarely enters into the discussion, even though it is a critical component of migration and development. Drawing on Bangladesh, a major migrant source and remittance receiving country, this chapter offers an overview of remittance governance in terms of enhancing state diasporic engagement to promote social and economic development. The chapter highlights remittance infrastructure, public and private agents and institutions, microfinance institutions in the remittance market, and legal and regulatory frameworks relevant to remittance governance. The chapter demonstrates that remittance governance in Bangladesh is largely focused on shifting remittances away from informal channels to the formal banking system. To strengthen diaspora engagement in development policy efforts, it is seen as necessary to direct individual and collective remittances toward productive investment, and to use remittances to promote financial inclusion for marginal groups. The chapter highlights some of the successes of remittance governance in the Bangladesh case, examples that may be adapted for other remittance receiving countries.