Uticaj personalnih novčanih doznaka na poboljšanje socijalnog stanja stanovništva i privrede zemalja primalaca
The Influence of Personal Money Remittances on the Improvement of the Social Condition of the Population and the Economy of the Recipient Countries

Author(s): Rade Kovač, Namik Čolaković
Subject(s): Social Sciences, Economy
Published by: Udruženje ekonomista i menadžera Balkana
Keywords: Remittances; Emigration; Poverty; Transformation of local communities; Economic reasons for emigration
Summary/Abstract: Remittances are a new financial phenomenon and one of the important sources of income for low- and middle-income countries. Although individual remittances are of relatively small value, they collectively represent enormous value, as collectively these flows are three times larger than global official development assistance. Although they are most often used to cover the basic needs of households, at the same time they support the development of skills and opportunities through education and entrepreneurship in some households, and these resources have proven to be crucial for the transformation of local communities, as they enable many families to achieve their own sustainable development goals. The countries of Southeast Europe have been facing large rates of emigration for years, and this has turned into a continuous process, the main cause of which is economic. Although emigration in the long-term context has negative repercussions, because in the long-term it reduces the potential growth rate of GDP and total factor productivity, and the pension and health fund collapses, there are also some positive effects, of a short-term nature, where the receipt of personal remittances stands out in particular. It was remittances that partly contributed to the reduction of the poverty rate, but also amortized the unfavorable effects of foreign trade exchange.

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