48 per cent of remittances to Georgia go to rural areas, as do over 60 per cent of remittances to Azerbaijan.
Migration
From the Near East, some 12 million people have
migrated abroad. Depending on the region of origin,
destinations for working or living abroad may include
France, Germany or the Russian Federation. Equally
significant is the intraregional mobility of people to
countries such as Kuwait and Saudi Arabia. People
from the Southern Caucasus migrate predominantly
to the Russian Federation and Ukraine. In Armenia,
for example, a large percentage of the population
has migrated abroad.
Remittances
Nearly US$30 billion are remitted to this region each
year. The top two recipient countries are Turkey and
Lebanon, receiving US$7.5 billion and US$5.7 billion
respectively. The impact of remittances as a
percentage of GDP differs notably: from 1.9 per cent
in Turkey to 25.2 per cent in Lebanon. On average,
on a country-by-country basis, remittances represent
4 per cent of GDP and 13 per cent of exports.
Rural remittances
Many people from the Near East, whether from the
Middle East or the Caucasus, migrate from rural
areas and remit to their places of origin. For example,
48 per cent of remittances to Georgia are sent
to rural areas, as are over 60 per cent of remittances
to Azerbaijan.
Market and financial access
Money transfers to this region offer a mix of players
such as those found in the Asian region. For example,
many corridors experience relatively low costs, as is
the case in the Caucasus. Similarly, migrants from the
Middle East sending remittances from the Arab oilexporting
countries often use inexpensive bank
transfers. However, a percentage of migrants handcarry
the money upon return to their home country
or on visits, especially if they are returning from
Kuwait or the United Arab Emirates.
Provision of financial access in the Near East is limited, in general, to a few well-established financial institutions offering financial intermediation strategies. In most countries, access is relatively limited. For example, the share of Georgians and Azerbaijanis with bank accounts is less than 15 per cent, and it is even lower in the rural areas from which the majority of people come.
Source: IFAD
