Pakistan’s Army of Overseas Workers Keeps Economy From Collapse

[Med911]

Re: Pakistan’s Army of Overseas Workers Keeps Economy From Collapse

@diwana

First I said ‘some of this money’…

Then I gave you few crude examples.

Then I said it can have a catch 22 effects.

There is no denial that remittance from overseas workers has for the most part a good effect on recipient country’s economy. (Short term benefit)

But, there are negative impacts also. And moreover, on the long run it has more negative effects on countries like Pakistan.

Negative effects on children education especially if these workers are from largely under-educated areas. That depends if parents are themselves educated.

Negative social effects on children and family with absence of father. (Typical scenario)

Children may get in to bad company or drugs.

http://www.pide.org.pk/pdf/Working%20Paper/WorkingPaper-66.pdf

Negative effect if the political situation and Govt. is not planning well the influx of remittance. (Poor planning) ( Negative impact on Macro-economic performance)

http://www.pide.org.pk/pdf/Working%20Paper/WorkingPaper-66.pdf

Negative Effect of Remittances

Not to mention the “brain drain” and its ill effects of losing skilled or medium skilled workers and resulting in substandard workers to fill the gap. (Long term ill effect)

With global economy fluctuation the overseas employment also fluctuates and hence it is never a permanent solution.

Those who get used to higher salaries do not usually come back to recipient country and either keep moving or try to get settled somewhere else.

Interestingly I answered above the negative effects on children education in Pakistan in one of above article.

Those kids do not go to Pakistani schools, they go abroad (with money earned abroad) and then may even stay there.
**
Third world countries with inept Govt. and poor planning relying on overseas workers do not really make their condition any better.**
Debts still pile up.

Hence, relying on foreign remittance has a catch 22 effect.

Everything has a catch to it. Even if tommorow Pakistan became a modern economic power house, and everyone was employed within the country, we would still have a similar situation, as parents would be working and children would be left in the hands of caregivers.

Regardless, we all know remittance is a band aid and not a solution.