In the first three months of 2016, 511.32 million BAM were paid to BiH from the diaspora in personal transfers or remittances. This was confirmed by the Central Bank of BiH. What is especially interesting is that this amount is greater than in the first quarters of the previous two years, because in the same period in 2014 the amount paid from the diaspora was 485.01 million BAM, and in the first quarter of 2015 the amount is 502.82 million BAM.
On annual level, these amounts are measured in billions. According to the same source, 2.310,69 million BAM entered BiH via personal transfers in 2014, while in 2015 the amount was 2.367,13 million BAM. Although the Central Bank stated that they receive personal transfers from abroad, they do not have precise data about who sends the money and are those all BiH citizens, i.e. our diaspora.
Analyses on macroeconomic plan speak about funds that are twice larger than average in countries of the southeast Europe and that represent the key driver of consumption, i.e. funds that significantly influence the purchasing power of citizens in BiH who largely depend on the money from the diaspora.
Nearly 20 million mostly young and educated people from Eastern Europe left their countries in the past 25 years, stated the IMF. In their analysis, the IMF assessed that better institutions and economic policies are necessary in the countries of origin, as well as the liberation of immigration regime in the countries that are in want of highly educated workers, especially doctors, architects and engineers.
“Emigrants are usually living better than the families in the countries where they come from. A large influx of remittances has supported consumption, but it has also led to the increase in exchange rates, which made economies less competitive and reduced the productivity.
The money that is sent back to relatives has led to an increase in wages rather than increase in productivity, which caused an erosion of return on investments and weakening of motivation for investing in the countries of origin, and reduced motivation for work,” the IMF stated in the report.
(Source: bhstring.net/photo: magazin.ba)
