Are Remittances Encouraging Education Globally?

Education fosters a positive change in overall development. Investing in human capital is essential to accomplish sustainable economic growth. Education provides an opportunity for individuals to lead a better lifestyle by enhancing the household's financial status. Furthermore, education encourages entrepreneurship and stimulates technological advancements, in turn, creating employment

Research suggests that their families primarily use remittance for procuring food, buying clothes and education. Nations that receive remittance registers lower school dropout cases. Dilip Ratha, a leading world bank economist, terms remittances as "Dollars wrapped with care."

Impact of remittance on education

A recent study by UNESCO observed a positive correlation between remittance and education. The positive impact of remittance is accurate; however, it's correlation and education is a subject of constant debate. It is undeniable that remittances present unique opportunities by working as informal sources of foreign aid that help fund education. It covers all age groups, from primary schooling to professional degrees. Consequently, it improves family income, enabling more enrolments in school programmes. Furthermore, it provides financial assistance to those who endeavour to pursue further education.

Changing the world with one transaction at a time

According to the UNESCO Institute for Statistics, since the 1970s, school dropout cases has decreased considerably. Recipients in India spend an extra 17% on education when compared to other households. Morocco, too, has shown encouraging trends towards increased spending on education from cross-border money receivables. Remittance-receiving households in Lima and Guatemala tripled their education budget. Simultaneously, in the Philippines, relatives working in the Republic of Korea also tripled their spend on health and education sectors. Education is not regarded as consumption activity anymore. On the contrary, people now perceive it as an investment in individual human capital. Families now don't have to worry about meeting the necessities, and children are more likely to finish their education.

Enabling education by making remittance affordable

As discussed earlier, the interplay between remittance and education has a positive effect on the national economy. Young individuals who complete their formal education have dynamic opportunities. Further advantages include the development of mind and skills for community building, civic participation and leadership. Researchers have noted that a better-educated population contributes to economic growth, poverty reduction, and multiple other benefits for society.

The volumes

The aspiration for better life opportunities is enticing more people than ever to migrate. According to the United Nations Department of Economic and Social Affairs (UNDESA); The total number of Emigrants at mid-year 2020 stood at 280.6 Million. These migrants, in turn, transfer earnings back to their native place. As a result, remittances act as a lifeline for poor people and countries. Cross Border transfers to Low and Middle-Income Countries reached $550 Billion in 2019.

How Can You Participate in this Opportunity?

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