Tales From Madagascar

I first came across the term remittance economy when playing chess in Armenia.  Back in the 90’s post the collapse of the Soviet Union, Armenia was significantly dependent on remittances. Madagascar can be considered to some extent a remittance economy.   Remittances total around $ 500 million.  Remittances from Malagasy citizens working abroad significantly impact Madagascar's economy in several ways: 1. Income Support: Remittances provide essential financial support to families, improving their living standards. This additional income helps cover basic needs, such as food, healthcare, and education. 2. Poverty Reduction: By supplementing household incomes, remittances play a crucial role in reducing poverty levels. They can help families escape poverty traps and improve their overall economic well-being. 3. Consumption Boost: Increased disposable income from remittances often leads to higher consumer spending. This boost in demand for goods and services can stimulate lo...