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160-529: Due to its large diaspora , India consecutively remains the top receiver of remittances. In 2022, the top six recipient countries for remittances inflows in current U.S. dollars were India ($ 100 billion), Mexico ($ 60 billion), China ($ 51 billion), the Philippines ($ 38 billion), Egypt ($ 32 billion) and Pakistan ($ 29 billion). Remittance has been defined by the World Bank as the part of the earnings which

320-517: A World Bank Study, the Philippines is the second largest recipient for remittances in Asia. It was estimated in 1994 that migrants sent over US$ 2.6 billion back to the Philippines through formal banking systems. With the addition of money sent through private finance companies and return migrants, the 1994 total was closer to US$ 6 billion annually. The total is estimated to have grown by 7.8 percent annually to reach US$ 21.3 billion in 2010. Remittances are

480-504: A migrant worker sends back to family members in the country of origin. Worldwide, the flow of remittance has increased from US$ 72.3 billion in 2001 to approximately US$ 483 billion in 2011. According to the World Bank , in 2018 overall global remittance grew 10% to US$ 689 billion, including US$ 528 billion in 2019 to developing countries. Overall global remittance is expected to grow 3.7% to US$ 715 billion in 2019, including US$ 549 billion to developing nations. Economic research has focused on

640-663: A 10.8%. A study conducted in 2004 examined the impact of remittances from a micro perspective, and determined that households with average income were the most likely to have a family member abroad because poorer households lacked the financial ability to send family members out of the country and the most wealthy households did not have a reason to. In 2017, the majority of remittance flows to Armenia originated from Russia, about 60.5% of overall remittances. The figure amounted to nearly $ 945 million due to more than 2 million Armenians living in Russia. The next biggest inflows were recorded from

800-480: A Western Union agent. Western Union also operates as bureau de change with a fee ranging from eight to twelve percent. Western Union is the world's leading handler of remittance and the 170,000 Western Union agents handle about 25 percent of the total global remittance traffic. Other companies such as MoneyGram have also been a key player for decades. Pure play money transfer providers may be owned by parent companies with more diverse interests. Two players dominate

960-556: A century ago when these parts of the continent were under British and French colonial rule. Most of these migrants were of Gujarati or Punjabi origin. There are almost three million Indians living in South-East Africa. Indian-led businesses were (or are) the backbone of the economies of these countries. These ranged in the past from small rural grocery stores to sugar mills . In addition, Indian professionals, such as doctors, teachers, engineers, also played an important part in

1120-513: A challenge to the epistemic norms typically assumed within financial economics and all of empirical finance. The possibility of financial crises being beyond the predictive reach of causality is discussed further within Epistemology of finance . Leverage , which means borrowing to finance investments, is frequently cited as a contributor to financial crises. When a financial institution (or an individual) only invests its own money, it can, in

1280-403: A currency of at least 25% but it is also defined as at least a 10% increase in the rate of depreciation. In general, a currency crisis can be defined as a situation when the participants in an exchange market come to recognize that a pegged exchange rate is about to fail, causing speculation against the peg that hastens the failure and forces a devaluation . A speculative bubble (also called

1440-419: A devaluation crisis, is normally considered as part of a financial crisis. Kaminsky et al. (1998), for instance, define currency crises as occurring when a weighted average of monthly percentage depreciations in the exchange rate and monthly percentage declines in exchange reserves exceeds its mean by more than three standard deviations. Frankel and Rose (1996) define a currency crisis as a nominal depreciation of

1600-399: A few agents encourage others to buy too, not because the true value of the asset increases when many buy (which is called "strategic complementarity"), but because investors come to believe the true asset value is high when they observe others buying. In "herding" models, it is assumed that investors are fully rational, but only have partial information about the economy. In these models, when

1760-445: A few investors buy some type of asset, this reveals that they have some positive information about that asset, which increases the rational incentive of others to buy the asset too. Even though this is a fully rational decision, it may sometimes lead to mistakenly high asset values (implying, eventually, a crash) since the first investors may, by chance, have been mistaken. Herding models, based on Complexity Science , indicate that it

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1920-402: A financial bubble or an economic bubble) exists in the event of large, sustained overpricing of some class of assets. One factor that frequently contributes to a bubble is the presence of buyers who purchase an asset based solely on the expectation that they can later resell it at a higher price, rather than calculating the income it will generate in the future. If there is a bubble, there is also

2080-404: A financial crisis. To facilitate his analysis, Minsky defines three approaches that financing firms may choose, according to their tolerance of risk. They are hedge finance, speculative finance, and Ponzi finance. Ponzi finance leads to the most fragility. Financial fragility levels move together with the business cycle . After a recession , firms have lost much financing and choose only hedge,

2240-475: A fixed exchange rate may be stable for a long period of time, but will collapse suddenly in an avalanche of currency sales in response to a sufficient deterioration of government finances or underlying economic conditions. According to some theories, positive feedback implies that the economy can have more than one equilibrium . There may be an equilibrium in which market participants invest heavily in asset markets because they expect assets to be valuable. This

2400-493: A higher percentage of costs due to transfer fees. Migrants sent approximately 10% of their household incomes; these remittances made up a corresponding 50–80% of the household incomes for the recipients. Significant amounts of remittances were sent from 37 U.S. states, but six states were identified as the "traditional sending" states: New York (which led the group with 81% of its immigrants making regular remittances), California, Texas, Florida, Illinois, and New Jersey. According to

2560-545: A lesser degree Gujarat , Andhra Pradesh and Goa . However, the phenomenon continues to be a major force in India's economic ( foreign direct investment ), social and political relations with nations having significant Indian populace. For example, the 2008 signing of the India–United States Civil Nuclear Agreement was helped by intense lobbying from Indian Americans . Indophilia or Indomania

2720-587: A number of competing MTOs. Somali expatriates often send remittances to their relatives in Greater Somalia through Dahabshiil and other Somali-owned money transfer companies. In order to ensure that these funds go to their intended recipients rather than Al-Shabaab and other militant groups, the governments of the United States, Australia, and a number of other Western countries tightened their banking requirements or stopped processing altogether

2880-539: A reliable source of revenue for the Philippines, accounting for 8.9 per cent of the country's GDP. The Estrada administration in 2000 declared it "The Year of Overseas Filipino Worker in the Recognition of the Determination and Supreme Self-Sacrifice of Overseas Filipino Workers." This declaration connects monetary remittances of overseas workers as the top foreign-exchange earnings in the Philippines. Since

3040-730: A religious procession led to violence against them by Muslim Uyghurs. In 1896 two Uyghur Turkis attacked a Hindu merchant and the British consul Macartney demanded the Uyghurs be punished by flogging. The money lenders and merchants of Hindu background from British India in Xinjiang were guaranteed by the British Consul-General. Russian refugees, missionaries, and British-Indian merchants and money lenders of Hindu background were potential targets of gangs of Kashgaris so

3200-701: A risk of sovereign default due to fluctuations in exchange rates. Many analyses of financial crises emphasize the role of investment mistakes caused by lack of knowledge or the imperfections of human reasoning. Behavioural finance studies errors in economic and quantitative reasoning. Psychologist Torbjorn K A Eliazon has also analyzed failures of economic reasoning in his concept of 'œcopathy'. Historians, notably Charles P. Kindleberger , have pointed out that crises often follow soon after major financial or technical innovations that present investors with new types of financial opportunities, which he called "displacements" of investors' expectations. Early examples include

3360-490: A risk of a crash in asset prices: market participants will go on buying only as long as they expect others to buy, and when many decide to sell the price will fall. However, it is difficult to predict whether an asset's price actually equals its fundamental value, so it is hard to detect bubbles reliably. Some economists insist that bubbles never or almost never occur. Well-known examples of bubbles (or purported bubbles) and crashes in stock prices and other asset prices include

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3520-538: A run renders the bank insolvent, causing customers to lose their deposits, to the extent that they are not covered by deposit insurance. An event in which bank runs are widespread is called a systemic banking crisis or banking panic . Examples of bank runs include the run on the Bank of the United States in 1931 and the run on Northern Rock in 2007. Banking crises generally occur after periods of risky lending and resulting loan defaults. A currency crisis, also called

3680-411: A share of Gross Domestic Product , the top recipients in 2009 were: Lesotho (25%), Togo (10%), Cape Verde (9%), Guinea-Bissau (9%), Senegal (9%), Gambia (8%), Liberia (6%), Sudan (6%), Nigeria (6%), and Kenya (5%). A major source of foreign-exchange earnings for Nigeria are remittances sent home by Nigerians living abroad. In 2014, 17.5 million Nigerians lived in foreign countries, with

3840-497: A significant group are Muslims (26.3%). Mauritius is the only Hindu majority (48.5%) country of Africa according to the 2011 census. There are also a relatively small number of Baháʼís and Sikhs . The mother tongue of Indo-Mauritians is Creole , as well as French and English in general fields, however various Indian languages are still spoken, especially Bhojpuri , Tamil , Hindi , Marathi , Odia , Telugu , and Urdu as they are used in religious activities. Mauritius hosts

4000-428: A small profit could be made with little or no capital. However, when interest rates changed and the incentive for the flow was removed or reversed sudden changes in capital flows could occur. The subjects of investment might be starved of cash possibly becoming insolvent and creating a credit crunch and the loaning banks would be left with defaulting investors leading to a banking crisis. As Charles Read has pointed out,

4160-420: A third of their GDP. International remittances have a major impact on developing countries around the world because the majority of remittances, some $ 441 billion in 2015, goes to developing economies. This amount is nearly triple the $ 131 billion of global Official Development Assistance . The licensed money transmitter Western Union allows customers to designate a recipient who can pick up that money at any

4320-576: A vital source of income for people whose other forms of livelihood may have been destroyed by conflict or natural disaster. According to the Overseas Development Institute , this is being increasingly recognized as important by aid actors who are considering better ways of supporting people in emergency responses. An illustrative example can be Armenia, that had experienced a devastating earthquake in Spitak on December 7, 1988, when

4480-471: Is a permanent visa for visiting India with a foreign passport. According to the Ministry of External Affairs report updated on 21 May 2024, there are 35.4 million non-resident Indians (NRIs) and People of Indian Origins (PIOs) (including OCIs) residing outside India. The Indian diaspora comprise the world's largest overseas diaspora. Every year, 2.5 million (25 lakh) Indians immigrate overseas, making India

4640-507: Is a social organisation of PIO/NRI professionals. An Indian Women's Association brings together PIO/NRI spouses and undertakes charitable activities. There is a Gurudwara Prabandhak Committee in Jakarta and Sindhis as well, Sikhs are associated with Gurudwara activities. The Economic Association of Indonesia and India (ECAII) brings together leading entrepreneurs from the Indian community with

4800-645: Is available, the methodologies used by countries for remittance data compilation are not publicly available. A 2010 world survey of central banks found significant differences in the quality of remittance data collection across countries: some central banks only used remittances data reported from commercial banks, neglecting to account for remittance flows via money transfer operators and post offices. Indian diaspora Overseas Indians ( ISO : Pravāsī Bhāratīya ), officially Non-Resident Indians ( NRIs ) and People of Indian Origin ( PIOs ) are Indians who reside or originate outside of India . According to

4960-613: Is based on the work of Thomas Tooke , Thomas Attwood , Henry Thornton , William Jevons and a number of bankers opposed to the Bank Charter Act 1844 . Starting at a time when short-term interest rates are low, frustration builds up among investors who search for a better yield in countries and locations with higher rates, leading to increased capital flows to countries with higher rates. Internally, short-term rates rise above long-term rates causing failures where borrowing at short term rates has been used to invest long-term where

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5120-516: Is believed that they travelled in Arab dhows , Maratha Navy ships (under Kanhoji Angre ), and possibly Chinese junks and Portuguese vessels. Some of these people settled in South-East Africa and later spread to places like present day Uganda, and Mozambique. Later they mingled with the much larger wave of South Asians who came with the British. Indian migration to the modern countries of Kenya, Uganda, Mauritius, South Africa, and Tanzania began nearly

5280-459: Is called a currency crisis or balance of payments crisis . When a country fails to pay back its sovereign debt , this is called a sovereign default . While devaluation and default could both be voluntary decisions of the government, they are often perceived to be the involuntary results of a change in investor sentiment that leads to a sudden stop in capital inflows or a sudden increase in capital flight . Several currencies that formed part of

5440-528: Is called a recession . An especially prolonged or severe recession may be called a depression , while a long period of slow but not necessarily negative growth is sometimes called economic stagnation . Some economists argue that many recessions have been caused in large part by financial crises. One important example is the Great Depression , which was preceded in many countries by bank runs and stock market crashes. The subprime mortgage crisis and

5600-473: Is centered on establishing a comprehensive strategy and a consultative implementation plan for the formalization of the local financial sector. Additionally, the STFR is tasked with helping to foster a business environment and financial infrastructure conducive to growth. It is also empowered to coordinate and speed up the endorsement of financial governance instruments and transparency associated legislation, such as

5760-528: Is commonly referred to as the OCI card . The name is itself misleading, as it doesn't offer Indian citizenship. The Constitution of India does not permit full dual citizenship. The OCI card is effectively a long-term visa, with restrictions on voting rights and government jobs. The card is available to certain Overseas ex-Indians, and while it affords holders residency and other rights, it does have restrictions, and

5920-426: Is little consensus and financial crises continue to occur from time to time. It is apparent however that a consistent feature of both economic (and other applied finance disciplines) is the obvious inability to predict and avert financial crises. This realization raises the question as to what is known and also capable of being known (i.e. the epistemology ) within economics and applied finance. It has been argued that

6080-677: Is love, admiration or special interest for India or its people and culture. An Indophile is someone who loves India, Indian culture, cuisine, religions, history or its people. Population of Overseas Indians, by country, according to the Consular Services of the Ministry of External Affairs of India, or other estimates (if indicated). Indians in Madagascar are descended mostly from traders who arrived in 19th century looking for better opportunities. The majority of them came from

6240-509: Is making sure institutions have sufficient assets to meet their contractual obligations, through reserve requirements , capital requirements , and other limits on leverage . Some financial crises have been blamed on insufficient regulation, and have led to changes in regulation in order to avoid a repeat. For example, the former Managing Director of the International Monetary Fund , Dominique Strauss-Kahn , has blamed

6400-734: Is not considered to be any type of Indian citizenship from a constitutional perspective. Prime minister Narendra Modi announced on 28 September 2014 that PIO and OCI cards would be merged. On 9 January 2015, the Person of Indian Origin Card scheme was withdrawn by the Government of India and was merged with the Overseas Citizen of India card scheme. PIO cardholders must apply to convert their existing cards into OCI cards. The Bureau of Immigration stated that it would continue to accept

6560-501: Is scarce, potentially aggravating a financial crisis. International regulatory convergence has been interpreted in terms of regulatory herding, deepening market herding (discussed above) and so increasing systemic risk. From this perspective, maintaining diverse regulatory regimes would be a safeguard. Fraud has played a role in the collapse of some financial institutions, when companies have attracted depositors with misleading claims about their investment strategies, or have embezzled

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6720-432: Is struck by hardship such as a financial crisis , natural disaster , or political instability. In 2009 remittance payments to developing countries declined globally for the first time in recorded history of the global financial system . But with a decline of only 5.2 percent in 2009, remittance was significantly less precarious than private capital flows including foreign direct investment . The United States has been

6880-432: Is taxed as that of NRIs while they enjoy all the other rights of a citizen. A Person of Indian Origin (PIO) means a foreign citizen (except a national of Pakistan , Afghanistan , Bangladesh , China , Iran , Bhutan , Sri Lanka and/or Nepal ), who: After multiple efforts by leaders across the Indian political spectrum, a long term visa scheme was established. It is entitled the "Overseas Citizenship of India", and

7040-571: Is taxed by government and returned to the mass of people in the form of welfare, family benefits and health and education spending; and secondly, the proportion of the population who are workers rather than investors/business owners. Given the extraordinary capital expenditure required to enter modern economic sectors like airline transport, the military industry, or chemical production, these sectors are extremely difficult for new businesses to enter and are being concentrated in fewer and fewer hands. Empirical and econometric research continues especially in

7200-430: Is the country's second-largest source of foreign earnings after its gigantic textile industry. Bangladesh is one of the top 10 countries in the world for migration and remittance according to World Bank. Most of the remittances come from gulf countries. India is the world's top receiver of remittances, claiming more than 12% of the world's remittances in 2015. Indians living overseas are the world's largest diaspora. As per

7360-461: Is the internal structure of the market, not external influences, which is primarily responsible for crashes. In "adaptive learning" or "adaptive expectations" models, investors are assumed to be imperfectly rational, basing their reasoning only on recent experience. In such models, if the price of a given asset rises for some period of time, investors may begin to believe that its price always rises, which increases their tendency to buy and thus drives

7520-658: Is the type of argument underlying Diamond and Dybvig's model of bank runs , in which savers withdraw their assets from the bank because they expect others to withdraw too. Likewise, in Obstfeld's model of currency crises , when economic conditions are neither too bad nor too good, there are two possible outcomes: speculators may or may not decide to attack the currency depending on what they expect other speculators to do. A variety of models have been developed in which asset values may spiral excessively up or down as investors learn from each other. In these models, asset purchases by

7680-402: The 2014 Russian ruble devaluation and reached $ 1.528 billion in 2019. Armenia falls in the top 20 countries worldwide for receiving remittances. Armenia, being a country with one of the largest diasporas in the world, provides a case study of a developing economy that is dependent on remittances and the financial support they provide. Total remittances to Armenia reached $ 1.87 billion in 2013,

7840-857: The Aapravasi Ghat , the only site of UNESCO in the world, to pay homage to the memory of indenture . The Indian Festivals of Maha Shivaratri , Diwali , Thaipusam , Ponggal , Ganesh Chaturthi and Ugadi are all National Holidays as well as the Annual Commemoration of the Arrival of Indian Indentured Labourers in Mauritius. Indians make up a quarter of Réunion's population. Most originally came as indentured workers from Tamil Nadu . Most Asians in South Africa are descended from indentured Indian labourers who were brought by

8000-662: The Arab Monetary Fund (AMF) statistics in 2010 indicate that Jordan was the third biggest recipient of remittances among Arab countries after Egypt and Lebanon. The host countries that have absorbed most of the Jordanian expatriates are Saudi Arabia and the United Arab Emirates , where the available data indicate that about 90% of Jordanian migrants are working in the Persian Gulf. According to

8160-738: The British Colonial disasters ended, much of the migration that occurred was of pioneering Girmitya indentured workers – mostly Bhojpuri and Awadhi -speaking people from the Bhojpur district of Uttar Pradesh and Bihar to other British colonies under the Indian indenture system . The major destinations were Mauritius , Guyana , Trinidad and Tobago , Suriname , other parts of the Caribbean (e.g. Jamaica , Guadeloupe , Martinique , Belize , Barbados , Grenada , Saint Vincent and

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8320-626: The European Exchange Rate Mechanism suffered crises in 1992–93 and were forced to devalue or withdraw from the mechanism. Another round of currency crises took place in Asia in 1997–98 . Many Latin American countries defaulted on their debt in the early 1980s. The 1998 Russian financial crisis resulted in a devaluation of the ruble and default on Russian government bonds. Negative GDP growth lasting two or more quarters

8480-606: The Government of India , Non-Resident Indians are citizens of India who currently are not living in India, while the term People of Indian Origin refers to people of Indian birth or ancestry who are citizens of countries other than India (with some exceptions). Overseas Citizenship of India (OCI) is given to People of Indian Origin and to persons who are not People of Indian Origin but married to Indian citizen or People of Indian Origin . Persons with OCI status are known as Overseas Citizens of India ( OCIs ). The OCI status

8640-595: The Great Recession , remittances from the United States to Latin America have been on the decline. While there were US$ 69.2 billion worth of remittances sent in 2008, that figure has fallen to $ 58.9 billion for 2011. This trend is a result of many factors including the recession itself, more economic opportunity in Latin American countries, and rising fees charged by coyotes to smuggle immigrants across

8800-676: The Madhesh province of Nepal to acquire Nepalese citizenship and Nepalese identity via naturalisation. The total number of Indian citizens temporarily living and working in Nepal is estimated to be somewhere between two and three million. Nepal is also the seventh largest source of remittance to India, which amounted to nearly $ 3.5 billion in 2013/2014. The official figures, it is estimated that there are around 125,000 Indians living in Indonesia and 25,000 PIOs/NRIs living in Indonesia of which

8960-400: The Ministry of Overseas Indian Affairs (MOIA), remittance is received from the approximately 35 million members of the Indian diaspora . Remittances to India stood at US$ 68.968 billion in 2017 and outward remittances from India to other countries totalled US$ 5.710 billion, for a net inflow of US$ 63.258 billion in 2017. The flow of remittances to Jordan experienced rapid growth during

9120-484: The Philippines (approx. US$ 33.5 billion in 2020), Pakistan (US$ 26.0 billion in 2020), Bangladesh (US$ 21.5 billion in 2020) and more. Asian countries such as Tajikistan and Nepal are among the countries that rely the most on remittances, accounting for 35% and 25% of their GDP respectively. Most of the remittances happen by the conventional channel of agents. However, with the increasing relevance and reach of

9280-1039: The Qajar and Zand dynasties in Persia after a clampdown by Nader Shah and the Afghan Ghilzar wars in Iran. Sarmarqandi and Bukharan traders bought Indian indigo from merchants of Hindu origin in Kandahar in 1783 according to George Forester. The tallest houses were owned by Hindus according to Elphinstone in 1815. Lumsden recorded 350 stores owned by Hindus in Kandahar . Finance, precious metals, and textiles were all dealt with by Sikhs and Hindus in Kandahar. A Hindu worked for Timur Shah Durrani in Afghanistan. Peshawar Hindus were in Kabul by 1783. Money lending

9440-519: The South Sea Bubble and Mississippi Bubble of 1720, which occurred when the notion of investment in shares of company stock was itself new and unfamiliar, and the Crash of 1929 , which followed the introduction of new electrical and transportation technologies. More recently, many financial crises followed changes in the investment environment brought about by financial deregulation , and

9600-542: The Spanish East Indies government and occupying the surrounding areas until Caintâ and Morong (today in Rizal province) between 1762 and 1763. Following the end war's end, a number of Indian soldiers mutinied, settled, and married local Tagalog women. These Sepoy Indians still have descendants in the town today. Indian Singaporeans – defined as persons of South Asian paternal ancestry – form 9% of

9760-721: The UK government 's Department for International Development (DFID) and USAID began to look into ways in which the cost of remitting money could be lowered. In September 2008, the World Bank established the first international database of remittance prices. The Remittance Prices Worldwide Database provides data on sending and receiving remittances for over 200 "country corridors" worldwide. The "corridors" examined include remittance flows from 32 major sending countries to 89 receiving countries, which account for more than 60% of total remittances to developing countries. The resulting publication of

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9920-433: The bursting of other financial bubbles , currency crises , and sovereign defaults . Financial crises directly result in a loss of paper wealth but do not necessarily result in significant changes in the real economy (for example, the crisis resulting from the famous tulip mania bubble in the 17th century). Many economists have offered theories about how financial crises develop and how they could be prevented. There

10080-712: The financial crisis of 2007–2008 on 'regulatory failure to guard against excessive risk-taking in the financial system, especially in the US'. Likewise, the New York Times singled out the deregulation of credit default swaps as a cause of the crisis. However, excessive regulation has also been cited as a possible cause of financial crises. In particular, the Basel II Accord has been criticized for requiring banks to increase their capital when risks rise, which might cause them to decrease lending precisely when capital

10240-439: The law . Financial crisis Heterodox A financial crisis is any of a broad variety of situations in which some financial assets suddenly lose a large part of their nominal value. In the 19th and early 20th centuries, many financial crises were associated with banking panics , and many recessions coincided with these panics. Other situations that are often called financial crises include stock market crashes and

10400-478: The stock market (" margin buying ") became increasingly common prior to the Wall Street Crash of 1929 . Another factor believed to contribute to financial crises is asset-liability mismatch , a situation in which the risks associated with an institution's debts and assets are not appropriately aligned. For example, commercial banks offer deposit accounts that can be withdrawn at any time, and they use

10560-422: The world systems theory and in the debate about Nikolai Kondratiev and the so-called 50-years Kondratiev waves . Major figures of world systems theory, like Andre Gunder Frank and Immanuel Wallerstein , consistently warned about the crash that the world economy is now facing. World systems scholars and Kondratiev cycle researchers always implied that Washington Consensus oriented economists never understood

10720-461: The " hawala system " to send money to their country of origin. According to economist Gözde Güran remittances sent through hawala has become an integral part of the Syrian economy. In Latin America and the Caribbean , remittances play an important role in the economy of the region, totaling over US$ 66.5 billion in 2007, with about 75% originating in the United States. This total represents more than

10880-614: The 17th century Dutch tulip mania , the 18th century South Sea Bubble , the Wall Street Crash of 1929 , the Japanese property bubble of the 1980s, and the crash of the United States housing bubble during 2006–2008. The 2000s sparked a real estate bubble where housing prices were increasing significantly as an asset good. When a country that maintains a fixed exchange rate is suddenly forced to devalue its currency due to accruing an unsustainable current account deficit, this

11040-491: The 1970s and 1980s when Jordan started exporting skilled labor to the Persian Gulf . These remittances represent an important source of funding for many developing countries, including Jordan. According to the World Bank data on remittances, with about US$ 3 billion in 2010 Jordan ranked at 10th place among all developing countries. Jordan ranked among the top 20 recipients of remittances for the preceding decade. In addition,

11200-462: The 1990s with an influx of both well-educated and unskilled migrants from India, and as part of growing income inequality in Singapore. Indians earn higher incomes than Malays, the other major minority group. Indians are also significantly more likely to hold university degrees than these groups. However, the mainly locally born Indian students in public primary and secondary schools under-perform

11360-558: The 1990s, new Indian immigrants have increased the size and complexity of the local Indian population. Together with modern communications like cable television and the Internet , this has connected Singapore with an emerging global Indian culture. Prominent Indian individuals have long made a mark in Singapore as leaders of various fields in national life. Indians are also collectively well-represented, and sometimes over-represented, in areas such as politics , education , diplomacy and

11520-437: The 19th and 20th centuries. In the case of Spain, remittances amounted to 21% of all of its current account income in 1946. All of those countries created policies on remittances developed after significant research efforts in the field. For instance, Italy was the first country in the world to enact a law to protect remittances in 1901 while Spain was the first country to sign an international treaty with Argentina in 1960 to lower

11680-600: The 2000s remittances from Turkey has been increasing, reaching US$ 1.49 billion in 2021 according to the World Bank. Although remittances to Turkey had been a significant part of the economy in the past, since the 2000s they only represent a fraction of the Turkish economy with 0.1% of the total GDP. Since the Syrian civil war the foreign-born population of Turkey has been growing. It was reported that Syrians in Turkey were using

11840-491: The 2008 subprime mortgage crisis ; government officials stated on 23 September 2008 that the FBI was looking into possible fraud by mortgage financing companies Fannie Mae and Freddie Mac , Lehman Brothers , and insurer American International Group . Likewise it has been argued that many financial companies failed in the recent crisis because their managers failed to carry out their fiduciary duties. Contagion refers to

12000-446: The British from India in the 19th century, mostly to work on the sugar cane plantations of what is now the province of KwaZulu-Natal (KZN). The majority are of Tamil speaking heritage along with people that speak Hindi or Bhojpuri , mostly descending from Bihar and Uttar Pradesh. There are also smaller numbers of Telugu speaking communities while a minority are descended from Indian traders who migrated to South Africa at around

12160-781: The Bughra Amirs. Antagonism against both the British and Hindus ran high among the Muslim Turki Uyghur rebels in Xinjiang's southern area. Muslims plundered the possessions in Karghalik of Rai Sahib Dip Chand, who was the aksakal of Britain, and his fellow Hindus on 24 March 1933, and in Keryia they slaughtered British Indian Hindus. Sind's Shikarpur district was the origin of the Hindu diaspora there. The slaughter of

12320-1027: The Bukharan Emirate as well as Ferghana cotton. They also engaged in legal money lending in Bukhara, which they could not legally do in Russian Turkestan . Jews, Hindus, Baluch, Persians, and Arabs lived in Samarkand, and Hindus and Baháʼís live in Baluchistan and Khorasan in Iran. Uyghur merchants would harass Hindu usurers by screaming at them asking them if they ate beef or hanging cow skins on their quarters. Uyghur men also rioted and attacked Hindus for marrying Uyghur women in 1907 in Poskam and Yarkand like Ditta Ram calling for their beheading and stoning Indians to death as they engaged in anti-Hindu violence. Hindu Indian usurers engaging in

12480-543: The Chittys number about 200,000 today. Currently, there are over 150,000 people of Indian origin residing in Philippines. By law, Indian Filipinos are defined as Philippine citizens of Indian descent. India and the Philippines have historic cultural and economic ties going back over 3,000 years. Iron Age finds in the Philippines point to the existence of trade between Tamil Nadu in South India and what are today

12640-640: The Consulate-General of Britain was a potential shelter. The killings of two Hindus at the hands of Uighurs took place in the Shamba Bazaar in a most brutal fashion. The plundering of the valuables of slaughtered British Indian Hindus happened in Posgam on 25 March 1933, and on the previous day in Karghalik at the hands of Uighurs . Killings of Hindus took place in Khotan at the hands of

12800-547: The Grenadines , Saint Lucia ), Fiji , Réunion , Seychelles , Malay Peninsula (e.g. Malaysia and Singapore ), East Africa (e.g. Kenya , Somalia , Tanzania , Uganda ) and South Africa . Gujarati and Sindhi merchants and traders settled in the Arabian Peninsula , Aden , Oman , Bahrain , Dubai , South Africa and East African countries, most of which were ruled by the British. The Indian Rupee

12960-622: The Hindus from British India was called the "Karghalik Outrage". The Muslims had killed nine of them. The forced removal of the Swedes was accompanied by the slaughter of the Hindus in Khotan by the Islamic Turkic rebels. The Emirs of Khotan slaughtered the Hindus as they forced the Swedes out and declared sharia in Khotan on 16 March 1933. A major emigration from the Indian subcontinent

13120-550: The Indian Community in Indonesia is now Jakarta-based; it is estimated that the population of Jakarta's Indian community is about 19,000. There are six main social or professional associations in Jakarta's Indian PIO/NRI community. Gandhi Seva Loka (formerly known as Bombay Merchants Association) is a charitable institution run by the Sindhi community and is engaged mainly in educational and social activities. The India Club

13280-705: The Indian expatriate community registered with the embassy and consulate in Medan numbers around 5,000-7,000 people. Most are from Tamil descendants. Indians have been living in Indonesia for centuries, from the time of the Srivijaya and Majapahit Empire both of which were Hindu and heavily influenced by the subcontinent. Indians were later brought to Indonesia by the Dutch in the 19th century as indentured labourers to work on plantations located around Medan in Sumatra. While

13440-518: The Indian merchant community plummeting due to the Ottoman and Afghan wars in Iran (1722–27) . In Kerman , traders of Hindu background had a caravanserai . Traders of Indian background were mentioned by Jean Chardin, Jean de Thévenot, Adam Olearius and F. A. Kotov in the Safavid dynasty in Persia where they lived along with Jews and Armenians. Traders from India of Sikh and Hindu background lived in

13600-533: The Indian population was transient, mainly comprising young men who came as workers, soldiers and convicts. By the mid-20th century, a settled community had emerged, with a more balanced gender ratio and a better spread of age groups . Tamil is one among the four official languages of Singapore alongside English, Chinese and Malay. Singapore's Indian population is notable for its class stratification , with disproportionately large elite and lower income groups. This long-standing problem has grown more visible since

13760-440: The Indian west coast state of Gujarat and were known as Karana (Muslim) and Bania (Hindu). The majority speak Gujarati , though some other Indian languages are spoken. Nowadays, the younger generations speak at least three languages; these languages include French or English, Gujarati and Malagasy . The people are known as Indo-Mauritians , and form about 65.8% of the population. The majority of them are Hindu (73.7%) and

13920-571: The Internet, online and mobile phone money transfers have grown significantly. Remittances are a major component of the Armenian economy . making up about 13% of Armenia's GDP in 2011. In 2013 around 40% of families of Armenia have received remittances. As a result, Armenia falls in the top 20 countries worldwide for receiving remittances. Total remittances to Armenia have reached their peak in 2013 being equal to $ 2.192 billion but plummeted after

14080-568: The Karabakh conflict had already started. About 45,000 people had died, while 500,000 became homeless. Armenia received support from different countries, for example, the U.S. government immediately sent $ 10 million, which helped to more or less recover the economy. Refugees and other displaced populations also often remit to family members left behind in conflict areas. The recent internationally coordinated effort to stifle possible sources of money laundering and/or terrorist financing has increased

14240-610: The Malaysian population. 85% of these people are Tamil-speaking. They have retained their languages and religion – 88% of ethnic Indians in Malaysia identify as Hindus. A minority number of the population are Sikhs and Muslims. There is also a small community of Indian origin, the Chitty , who are the descendants of only Tamil traders who had emigrated before 1500 CE. Considering themselves Tamil, speaking Malay, and practicing Hinduism,

14400-811: The Mexican central bank, remittances grew just 0.6 during the first six months of 2007, as compared to 23% during the same period in 2006. Experts attribute the slowdown to a contraction in the U.S. construction industry, tighter border controls, and a crackdown in the U.S. on illegal immigration. Remittance culture in the United States has contributed to the formation of "micro-geographies", tightly knit networks that integrate U.S. communities with communities throughout Latin America, such as migrants from Oaxaca , Mexico, who have settled in Venice Beach, California . Oaxacans not only send money back to their communities, but they also travel back and forth extensively. After

14560-590: The Philippine Islands during the ninth and tenth centuries BCE. The influence of Indian culture on Filipino cultures intensified from the 2nd through the late 14th centuries CE, impacting various fields such as language, politics, and religion. During the Seven Years' War , Indians from Chennai , and Tamil Nadu were part of the British expedition against Spanish Manila , taking the city from

14720-592: The Remittance Prices Worldwide Database serves four major purposes: benchmarking improvements, allowing comparisons across countries, supporting consumers' choices, and putting pressure on service providers to improve their services. At the July 2009 summit in L'Aquila , Italy , G8 heads of government and states endorsed the objective of reducing the cost of remittance services by five percentage points in five years. To drive down costs,

14880-665: The Tamil, Punjabi and Odia communities still maintain their cultural traditions. The Indian diaspora also includes several thousand Sindhi families who constitute the second wave of Indian immigrants who made Indonesia their home in the first half of the 20th century. The Sindhi community is mainly engaged in trading and commerce . Among these communities, Tamils and to a lesser extent Sikhs were primarily engaged in agriculture while Sindhis and Punjabis mainly established themselves in textile trade and sports businesses. The inflow of major Indian investments in Indonesia starting in

15040-652: The U.S. (with around 500,000-1,000,000 Armenians), at over $ 160 million, which is 10.25% of the overall figure. According to the IMF , starting from 2010 remittances in U.S. dollars, Armenian drams, and rubles, grew until they hit their peak in 2014 and started declining after that in a volatile fashion as a result of the Russian ruble devaluation. Remittances in drams and dollars declined to almost their 2010 levels. An estimated 10 million Bangladeshis, working abroad have sent $ 15 billion to home in 2018 and $ 18.32 billion in 2019. It

15200-569: The UK and the US having more than 2 million Nigerians each. According to the International Organization for Migration , Nigeria witnessed a dramatic increase in remittances sent home from overseas Nigerians, going from US$ 2.3 billion in 2004 to 17.9 billion in 2007, representing 6.7% of GDP. In 2016, remittances reached a new record of $ 35 billion. The United States accounts for the largest portion of official remittances, followed by

15360-539: The United Kingdom, Italy, Canada, Spain and France. On the African continent, Egypt, Equatorial Guinea, Chad, Libya, and South Africa are important source countries of remittance flows to Nigeria, while China is the biggest remittance-sending country in Asia. An August 2016 Nigerian Central Bank (NCB) decision to suspend the operations of all MTOs in the country, except those of Western Union, MoneyGram and Rio,

15520-484: The United States. Remittances to Africa play an important role in national economies. However, little data exists as many rely on informal channels to send money home. Immigrants from Africa today number approximately 20 to 30 million adults, who send around US$ 40 billion annually to their families and local communities back home. For the region as a whole, this represents 50 percent more than net official development assistance (ODA) from all sources, and, for most countries,

15680-537: The World Bank has begun certifying regional and national databases that use a consistent methodology to compare the cost of sending remittances. At the G20 2011 Summit in Cannes , Bill Gates stated that, "If the transaction costs on remittances worldwide were cut from where they are today at around 10% to an average of 5% it would unlock $ 15bn a year in poor countries." A number of low-cost online services have emerged with

15840-415: The actual risks in the economy and stop giving credit so easily. Refinancing becomes impossible for many, and more firms default. If no new money comes into the economy to allow the refinancing process, a real economic crisis begins. During the recession, firms start to hedge again, and the cycle is closed. The Banking School theory of crises describes a continuous cycle driven by varying interest rates. It

16000-500: The amount also exceeds foreign direct investment (FDI). In several fragile states, remittances are estimated to exceed 50 percent of GDP. Most African countries restrict the payment of remittances to banks, which in turn, typically enter into exclusive arrangements with large money transfer companies, like Western Union or Money Gram, to operate on their behalf. This results in limited competition and limited access for consumers, which allows these Money Transfer Operators (MTOs) to charge

16160-476: The assumptions of unique, well-defined causal chains being present in economic thinking, models and data, could, in part, explain why financial crises are often inherent and unavoidable. When a bank suffers a sudden rush of withdrawals by depositors, this is called a bank run . Since banks lend out most of the cash they receive in deposits (see fractional-reserve banking ), it is difficult for them to quickly pay back all deposits if these are suddenly demanded, so

16320-522: The border. The pattern of migration has changed from a circular flow, in which immigrants work in the United States for a few years before returning to their families in their home countries, to a one-way stream whereby migrants find themselves stuck in the United States. As a result, the new wave of migrants is both less likely to leave and more likely to stay in the United States for longer periods of time. Overall, this trend has contributed to falling levels of remittances sent to Latin American countries from

16480-468: The bursting of other real estate bubbles around the world also led to recession in the U.S. and a number of other countries in late 2008 and 2009. Some economists argue that financial crises are caused by recessions instead of the other way around, and that even where a financial crisis is the initial shock that sets off a recession, other factors may be more important in prolonging the recession. In particular, Milton Friedman and Anna Schwartz argued that

16640-628: The circular relationships often evident in social systems between cause and effect – and relates to the property of self-referencing in financial markets. George Soros has been a proponent of the reflexivity paradigm surrounding financial crises. Similarly, John Maynard Keynes compared financial markets to a beauty contest game in which each participant tries to predict which model other participants will consider most beautiful. Furthermore, in many cases, investors have incentives to coordinate their choices. For example, someone who thinks other investors want to heavily buy Japanese yen may expect

16800-415: The cost of sending remittances, directly increasing costs to the companies facilitating the sending, and indirectly increasing the costs to the person remitting. As in some corridors a sizable amount of remittances is sent through informal channels (family connections, traveling friends, local money lenders, etc.). According to the World Bank, some countries do not report remittances data. Moreover, when data

16960-628: The cost of the remittances received. Since 2000, remittances have increased sharply worldwide, having almost tripled to $ 529 billion in 2012. In 2012, migrants from India and China alone sent more than $ 130 billion to their home countries. In 2004 the G8 met at the Sea Island Summit and decided to take action to lower the costs for migrant workers who send money back to their friends and families in their country of origin. In light of this, various G8 government developmental organizations, such as

17120-424: The country's citizens and permanent residents, making them Singapore 's third largest ethnic group. Among cities, Singapore has one of the largest overseas Indian populations. Although contact with ancient India left a deep cultural impact on Singapore's indigenous Malay society, the mass migration of ethnic Indians to the island only began with the founding of modern Singapore by the British in 1819. Initially,

17280-416: The crash of the dot com bubble in 2001 arguably began with "irrational exuberance" about Internet technology. Unfamiliarity with recent technical and financial innovations may help explain how investors sometimes grossly overestimate asset values. Also, if the first investors in a new class of assets (for example, stock in "dot com" companies) profit from rising asset values as other investors learn about

17440-448: The cycle restarts from the beginning. Mathematical approaches to modeling financial crises have emphasized that there is often positive feedback between market participants' decisions (see strategic complementarity ). Positive feedback implies that there may be dramatic changes in asset values in response to small changes in economic fundamentals. For example, some models of currency crises (including that of Paul Krugman ) imply that

17600-413: The dangers and perils, which leading industrial nations will be facing and are now facing at the end of the long economic cycle which began after the oil crisis of 1973. Hyman Minsky has proposed a post-Keynesian explanation that is most applicable to a closed economy. He theorized that financial fragility is a typical feature of any capitalist economy . High fragility leads to a higher risk of

17760-506: The development of these countries. Indians in Japan consist of migrants from India to Japan and their descendants. As of December 2008 , There are currently around 40,000 Indians living in Japan. Roughly 60% consist of expatriate IT professionals and their families. In 2006, the newly formed Nepal parliament passed the controversial citizenship act Nepali nationality law that allowed nearly two million Indians especially those living in

17920-552: The economy. These theoretical ideas include the ' financial accelerator ', ' flight to quality ' and ' flight to liquidity ', and the Kiyotaki-Moore model . Some 'third generation' models of currency crises explore how currency crises and banking crises together can cause recessions. Austrian School economists Ludwig von Mises and Friedrich Hayek discussed the business cycle starting with Mises' Theory of Money and Credit , published in 1912. Recurrent major depressions in

18080-709: The establishment of the Indianised kingdoms in Southeast Asia. The Chola rulers , who were known for their naval power, conquered Sumatra and the Malay Peninsula . Another early diaspora, of which little is known, was a reported Indian "Shendu" community that was recorded when Yunnan was annexed by the Han dynasty in the 1st century by the Chinese authorities. During the mid-19th century right after

18240-408: The form of wages) than the value of the goods produced by those workers (i.e. the amount of money the products are sold for). This profit first goes towards covering the initial investment in the business. In the long-run, however, when one considers the combined economic activity of all successfully-operating business, it is clear that less money (in the form of wages) is being returned to the mass of

18400-511: The funds cannot be liquidated quickly (a similar mechanism was implicated in the March 2023 failure of SVB Bank ). Internationally, arbitrage and the need to stop capital flows, which caused bullion drains in the gold standard of the nineteenth century and drains of foreign capital later, bring interest rates in the low-rate country up to equal those in the country which is the subject of investment. The capital flows reverse or cease suddenly causing

18560-478: The generations, although some do enjoy watching Indian movies and listening to Indian music , and they maintain (and have had imposed upon them) a strong Indian racial identity as a consequence of the legacy of Apartheid . Before the larger wave of migration during the British colonial era, a significant group of South Asians, especially from the west coast ( Sindh , Surat , Konkan and Malabar ) travelled regularly to South East Africa, especially Zanzibar. It

18720-510: The highest fees for remittances in the world. However, there are a number of new players aiming to disrupt this established MTO model, such as Xoom and Willstream, which leverage increasing mobile phone penetration in the region and provide different rate structures to diaspora customers. Additionally, global initiative like the United Nations Sustainable Development Goal 10 has a target of reducing

18880-442: The idea that financial crises may spread from one institution to another, as when a bank run spreads from a few banks to many others, or from one country to another, as when currency crises, sovereign defaults, or stock market crashes spread across countries. When the failure of one particular financial institution threatens the stability of many other institutions, this is called systemic risk . One widely cited example of contagion

19040-506: The initial economic decline associated with the crash of 1929 and the bank panics of the 1930s would not have turned into a prolonged depression if it had not been reinforced by monetary policy mistakes on the part of the Federal Reserve, a position supported by Ben Bernanke . It is often observed that successful investment requires each investor in a financial market to guess what other investors will do. Reflexivity refers to

19200-504: The innovation (in our example, as others learn about the potential of the Internet), then still more others may follow their example, driving the price even higher as they rush to buy in hopes of similar profits. If such " herd behaviour " causes prices to spiral up far above the true value of the assets, a crash may become inevitable. If for any reason the price briefly falls, so that investors realize that further gains are not assured, then

19360-622: The international electronic funds transfer for interbank payments between two bank accounts . These are the Clearing House Interbank Payments System (CHIPS) and the Society for Worldwide Interbank Financial Telecommunication (SWIFT). Businesses as well as banks can subscribe to the international communications network Telex and initiate international financial transfers. Although the remittance market share has diversified when fintech startups entered

19520-624: The late 1970s drew a fresh wave of Indian investors and managers to this country. This group of entrepreneurs and business professionals has further expanded over the past two decades and now includes engineers, consultants, chartered accountants, bankers and other professionals. The Indian community is very well regarded in Indonesia, is generally prosperous, and includes individuals holding senior positions in local and multinational companies. Due to economic factors, most traders and businessmen among PIOs have over past decades moved to Jakarta from outlying areas such as Medan and Surabaya . Almost half

19680-751: The laws on Anti-Money Laundering (AML) and Counter Financing of Terrorism (CFT). In accordance with the Financial Action Task Force (FATF)'s recommendations, the STFR is in turn slated to oversee the Somali federal government's campaign to ratify various international treaties. The Task Forces' membership is scheduled to be announced shortly, and will be drawn from government institutions, the remittance industry, banks, and other key private sector stakeholders. Several European countries, for example Spain , Italy , and Ireland were heavily dependent on remittances received from their emigrants during

19840-724: The leading agency on regional remittance research. Mexico received remittance inflows of almost US$ 24 billion in 2007, 95% of which originated in the US. A 2004 study found that over 60% of the 16.5 million Latin American-born adults who resided in the United States at the time of the survey regularly sent money home. The remittances sent by these 10 million immigrants were transmitted via more than 100 million individual transactions per year and amounted to an estimated $ 30 billion during 2004. Each transaction averaged about $ 150–$ 250, and, because these migrants tended to send smaller amounts more frequently than others, their remittances had

20000-439: The leading source of remittances globally every year since the early 1980s. United Arab Emirates , Saudi Arabia , and Switzerland have been the next largest senders of remittances since 2015. Between 9 million and 11 million workers send remittances from Russia each year. A majority of the remittances have been directed to Asian countries like India (approx. US$ 87.0 billion in 2021), China (approx. US$ 60.0 billion in 2021),

20160-430: The majority of these came from South India, a significant number also came from the north of India. The Medan Indians included Hindus, Muslims and Sikhs. They have now been in Indonesia for over four generations and hold Indonesian passports . While local statistics continue to suggest that there are some 40,000 PIOs in Sumatra, the vast majority are now completely assimilated into Indonesian society, though some elements of

20320-555: The market in the 2010s, Western Union continues to dominate the majority of the remittance market share. Since the advent of fintech, many digital remittances have emerged on the scene, leading to the rise of comparison platforms or aggregators such as FXcompared and Monito in Europe and in Southeast Asia. Blockchain -based remittances companies are also starting to be used and offer such advantages as fast transfer time and relatively low transaction costs. The 2007–2008 financial crisis

20480-840: The mid-16th century and remained active for over four centuries. Astrakhan at the mouth of the Volga was the first place in the Tsardom of Russia where an Indian merchant colony was established as early as the 1610s. Russian chroniclers reported the presence of Hindu traders in Moscow and St Petersburg in the 18th century. Multani people from Multan , Shikarpur and Mawar of both Hindu and Muslim background acted as bankers and merchants in Safavid Persia. Hindu merchants in Hamadan were massacred by Ottomans as stated by an Armenian, with

20640-518: The modern equivalent of this process involves the Carry Trade, see Carry (investment) . Some financial crises have little effect outside of the financial sector, like the Wall Street crash of 1987 , but other crises are believed to have played a role in decreasing growth in the rest of the economy. There are many theories why a financial crisis could have a recessionary effect on the rest of

20800-428: The money they lend. Therefore, they are ready to lend to firms without full guarantees of success. Lenders know that such firms will have problems repaying. Still, they believe these firms will refinance from elsewhere as their expected profits rise. This is Ponzi financing. In this way, the economy has taken on much risky credit. Now it is only a question of time before some big firm actually defaults. Lenders understand

20960-514: The motivation for remittance, suggesting that the key drivers for remittance are altruism , self-interest in exchange, and repayment of past expense . A mix of motivations may coexist, in scientific literature this state of mind is summarized as "tempered altruism and enlightened selfishness". Remittances make up a significant portion of economies of developing countries . Many receive over 10% of their gross domestic product (GDP) in remittances each year, with some exceptional cases as high as

21120-468: The nation with the highest annual number of emigrants in the world. Strictly, the term Non-resident Indian refers only to the tax status of an Indian citizen who, as per section 6 of The Income-tax Act, 1961 , has not resided in India for a specified period for the purposes of the Income Tax Act. The rates of income tax are different for persons who are "resident in India" and for NRIs. For

21280-410: The national average at major examinations. Singapore Indians are linguistically and religiously diverse, with South Indians and Hindus forming majorities. Indian culture has endured and evolved over almost 200 years. By the mid to late 20th century, it had become somewhat distinct from contemporary South Asian cultures, even as Indian elements became diffused within a broader Singaporean culture . Since

21440-407: The objective of lowering the cost of money transfers to developing and emerging economies. There are also a number of comparison sites when it comes to remittance which breaks down the costs of sending money overseas. According to the World Bank remittance to low- and middle-income countries reached $ 529 billion in 2018, which was a record high. During disasters or emergencies, remittances can be

21600-569: The objective of promoting bilateral economic relations, but it has been largely inactive. Finally, there is the Indonesian Chapter of the Institute of Chartered Accountants of India (ICAI). Malaysia has one of the world's largest overseas Indian and overseas Chinese populations. Most Indians migrated to Malaysia as plantation labourers under British rule. They are a significant minority ethnic group, making up 8% or 2,410,000 as 2017 of

21760-793: The old PIO cards as valid travel documents until 31 December 2023. Notes: Narimsimhan et al. (2019) have found that there was an "Indus periphery" population living in Central Asia during the Bronze Age . They had migrated from the Indus Valley Civilisation and had settled down in BMAC settlements to trade, this is corroborated by the discovery of Indus Valley seals in Central Asia. The modern Indian merchant diaspora in Central Asia and Arabia emerged in

21920-410: The population (the workers) than is available to them to buy all of these goods being produced. Furthermore, the expansion of businesses in the process of competing for markets leads to an abundance of goods and a general fall in their prices, further exacerbating the tendency for the rate of profit to fall . The viability of this theory depends upon two main factors: firstly, the degree to which profit

22080-549: The price up further. Likewise, observing a few price decreases may give rise to a downward price spiral, so in models of this type, large fluctuations in asset prices may occur. Agent-based models of financial markets often assume investors act on the basis of adaptive learning or adaptive expectations. As the most recent and most damaging financial crisis event, the Global financial crisis, deserves special attention, as its causes, effects, response, and lessons are most applicable to

22240-402: The proceeds to make long-term loans to businesses and homeowners. The mismatch between the banks' short-term liabilities (its deposits) and its long-term assets (its loans) is seen as one of the reasons bank runs occur (when depositors panic and decide to withdraw their funds more quickly than the bank can get back the proceeds of its loans). Likewise, Bear Stearns failed in 2007–08 because it

22400-491: The purposes of the Income Tax Act, "residence in India" requires stay in India of at least 182 days in a financial year or 365 days spread out over four consecutive years and at least 60 days in that year. According to the act, any Indian citizen who does not meet the criteria as a "resident of India" is a non-resident of India and is treated as NRI for paying income tax. Seafarers are not considered NRIs. However as they work out of India, often for more than 182 days, their income

22560-787: The remittances. To address the concerns, the United States Congress passed the Money Remittances Improvement Act of 2014 . In April 2015, the Federal Cabinet of Somalia also officially launched the Special Task Force on Remittances (STFR). The multi-agency initiative is mandated with facilitating the Federal Government of Somalia 's new national policy pertaining to the money transfer industry. Its main priority

22720-625: The resulting income. Examples include Charles Ponzi 's scam in early 20th century Boston, the collapse of the MMM investment fund in Russia in 1994, the scams that led to the Albanian Lottery Uprising of 1997, and the collapse of Madoff Investment Securities in 2008. Many rogue traders that have caused large losses at financial institutions have been accused of acting fraudulently in order to hide their trades. Fraud in mortgage financing has also been cited as one possible cause of

22880-471: The safest. As the economy grows and expected profits rise, firms tend to believe that they can allow themselves to take on speculative financing. In this case, they know that profits will not cover all the interest all the time. Firms, however, believe that profits will rise and the loans will eventually be repaid without much trouble. More loans lead to more investment, and the economy grows further. Then lenders also start believing that they will get back all

23040-425: The same thing they expect others to do, then self-fulfilling prophecies may occur. For example, if investors expect the value of the yen to rise, this may cause its value to rise; if depositors expect a bank to fail this may cause it to fail. Therefore, financial crises are sometimes viewed as a vicious circle in which investors shun some institution or asset because they expect others to do so. Reflexivity poses

23200-503: The same time, many from Gujarat. The city of Durban has the highest number of Asians in sub-Saharan Africa, and the Indian independence leader Mahatma Gandhi worked as a lawyer in the country in the early 1900s. South Africa has one of the highest number of people of Indian descent outside of India in the world, i.e. born in South Africa and not migrant. Most of them are fourth or fifth-generation descendants. Most Indian South Africans do not speak any Indian languages, as they were 'lost' over

23360-425: The spiral may go into reverse, with price decreases causing a rush of sales, reinforcing the decrease in prices. Governments have attempted to eliminate or mitigate financial crises by regulating the financial sector. One major goal of regulation is transparency : making institutions' financial situations publicly known by requiring regular reporting under standardized accounting procedures. Another goal of regulation

23520-456: The subject of investment to be starved of funds and the remaining investors (often those who are least knowledgeable) to be left with devalued assets. Bankruptcies, defaults and bank failures follow as rates are pushed high. After the crisis governments push short-term interest rates low again to diminish the cost of servicing government borrowing which has been used to overcome the crisis. Funds build up again looking for investment opportunities and

23680-475: The sum of Foreign direct investment and official development aid combined. In seven Latin American and Caribbean countries, remittances even account for more than 10% of GDP and exceed the dollar flows of the largest export product in almost every country in the region. Percentages ranged from 2% in Mexico , to 18% in El Salvador , 21% in Honduras , and up to 30% in Haiti . The Inter American Development Bank's Multilateral Investment Fund (IDB-MIF) has been

23840-400: The tendency for the rate of profit to fall borrowed many features of the presentation of John Stuart Mill 's discussion Of the Tendency of Profits to a Minimum (Principles of Political Economy Book IV Chapter IV). The theory is a corollary of the Tendency towards the Centralization of Profits . In a capitalist system, successfully-operating businesses return less money to their workers (in

24000-527: The transaction costs of migrant remittances to less than 3 percent by 2030. According to a World Bank study, Nigeria is by far the top remittance recipient in Africa , accounting for $ 10 billion in 2010, a slight increase over the previous year ($ 9.6 billion). Other top recipients include Sudan ($ 3.2 billion), Kenya ($ 1.8 billion), Senegal ($ 1.2 billion), South Africa ($ 1.0 billion), Uganda ($ 0.8 billion), Lesotho ($ 0.5 billion), Ethiopia ($ 387 million), Mali ($ 385 million), and Togo ($ 302 million). As

24160-515: The very worst case, lose its own money. But when it borrows in order to invest more, it can potentially earn more from its investment, but it can also lose more than all it has. Therefore, leverage magnifies the potential returns from investment, but also creates a risk of bankruptcy . Since bankruptcy means that a firm fails to honor all its promised payments to other firms, it may spread financial troubles from one firm to another (see 'Contagion' below). For example, borrowing to finance investment in

24320-399: The world economy at the pace of 20 and 50 years have been the subject of studies since Jean Charles Léonard de Sismondi (1773–1842) provided the first theory of crisis in a critique of classical political economy's assumption of equilibrium between supply and demand. Developing an economic crisis theory became the central recurring concept throughout Karl Marx 's mature work. Marx's law of

24480-425: The yen to rise in value, and therefore has an incentive to buy yen, too. Likewise, a depositor in IndyMac Bank who expects other depositors to withdraw their funds may expect the bank to fail, and therefore has an incentive to withdraw, too. Economists call an incentive to mimic the strategies of others strategic complementarity . It has been argued that if people or firms have a sufficiently strong incentive to do

24640-420: Was met with a strong backlash. It was argued that the decision was not appropriately justified, while also standing in contrast to the NCB's previous move to ban all exclusivity agreements with Western Union. The decision was considered to disproportionally strengthen the dominant position of Western Union, MoneyGram and Rio. Under pressure, however, the Central Bank reversed the decision and granted new licenses to

24800-470: Was the legal currency in many countries of Arabian peninsula. Punjabi, Rajasthani, Sindhi, Baloch and Kashmiri Camel drivers were brought to Australia. After gaining independence from the British Raj , unlike internal migration, senior government leaders have historically not vocalized opinions on international emigration. As a result, it remains a political issue only in states with major emigrant populations, such as Kerala , Punjab , Tamil Nadu and to

24960-562: Was the main occupation of Hindus in Kabul. Armenians and Hindus lived in Kabul according to an 1876 survey. Jews and Hindus lived in Herat in the 1800s. Sindhi Shikarpur Hindus, Jews, and Arabs lived in Balkh in 1886. Sindhi and Punjabi were the languages used by Indians in Afghanistan. Some Afghan cities including Kabul have places of worship for Hindus and Sikhs. Local citizenship has been obtained in Afghanistan by Hindu and Sikh traders. Peshawari and Shikarpuri Indian traders were involved in Central Asia. The Shikarpuri invested in grain in

25120-684: Was the spread of the Thai crisis in 1997 to other countries like South Korea . However, economists often debate whether observing crises in many countries around the same time is truly caused by contagion from one market to another, or whether it is instead caused by similar underlying problems that would have affected each country individually even in the absence of international linkages. The nineteenth century Banking School theory of crises suggested that crises were caused by flows of investment capital between areas with different rates of interest. Capital could be borrowed in areas with low interest rates and invested in areas of high interest. Using this method

25280-415: Was to Southeast Asia . There is a possibility that the first wave of Indian migration towards Southeast Asia occurred when Emperor Ashoka invaded Kalinga and following Samudragupta 's expedition towards the South. This was followed by early interaction of Indian traders with South Asians and, after the mid-first millennium CE, by the emigration of members of the Brahmin social caste . This resulted in

25440-410: Was triggered in the United States and rippled through the financial system in developed countries . Nevertheless, throughout the 2007–2008 financial crisis remittance was among the less volatile sources of foreign exchange for developing countries . In financial literature, remittance sent by migrant workers to households in the country of origin, is regarded as countercyclical when the economy

25600-449: Was unable to renew the short-term debt it used to finance long-term investments in mortgage securities. In an international context, many emerging market governments are unable to sell bonds denominated in their own currencies, and therefore sell bonds denominated in US dollars instead. This generates a mismatch between the currency denomination of their liabilities (their bonds) and their assets (their local tax revenues), so that they run

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