Undoubtedly, migration leads to a loss of productivity and decrease in the labour force in the source economy. But remittances offset these losses in the long run. Households receive adequate sums of money, which leads to an increase in both consumption expenditure and investments, which in turn fuels the economy. Above this, emigrants are more keen on investing in new real estate, institutions, technology and better infrastructure— education and healthcare facilities— in their home countries. Remittances also substantially increase the inflow of foreign exchange and help tide over periods of income shocks for families. When the financial troubles are greater, remittances increase, and tend to decrease by a lesser degree during times of financial stability. In this way, it acts as a form of insurance and encourages activities that are imperative for long term economic growth (Collier 211). These activities include entrepreneurial ventures and better human capital development, factors that are key to increase the GDP of a country in the long run (Ratha). Trends over several years indicate that these foreign remittances actually exceed the sums received as portfolio investments and official development assistance, and are only second to foreign direct investments in low and middle income countries (Figure 2) (“Migration and Development Brief 30”). Remittances help maintain foreign exchange reserves in the country, which become vital for trade. Despite its advantages, a highly pressing issue that accompanies these remittances is the pressure it puts on economic inequalities within the source country. Migration in itself is a large investment, that only those who are relatively better off can make. This in turn means that remittances only reach the already well to do households, which increases the gap between the rich and the poor. Development activities fueled by remittances do provide greater employment, but this is rarely sufficient to narrow an already widening gap (Ratha). From the above discourse, stems certain socio-political consequences of migration. When oppressive political regimes and poor economic conditions overlap, emigration means the loss of those people who are affluent and have the influential positions in society. On the other hand, when these migrants return after receiving foreign education or understanding the economic and social systems of their host countries, they have the power of knowledge and new ideas. They can put this to use in their own countries by taking on new ventures and roles in top pos>