Abstract
This paper describes the economic potential of remittances, especially in comparison with the Official Development Assistance (ODA) in selected South Asian countries. It appears that remittance transfers contribute to the increase of GDP per capita in South Asian countries and beat the ODA both in absolute values and in the effectiveness.
The results of the empirical model that employs seemingly unrelated regressions demonstrate the importance of remittances over ODA, and support the implementation of targeted development policies devised by the West in order to support efficient remittance transfers which represent one of the best ways how to promote development and growth in less-developed economies.