Migrant remittances and development

Income remittances from migrant workers to countries of origin are central to the links between migration and development. Multiple, complex, and diverse forces, however, affect the flow of remittances. Factors may include the number and characteristics of workers abroad; levels and types of economic activity in sending and host countries; differential wage, exchange, and interest rates; political risk; and the facility for transferring funds. These factors then shape personal decisions made by migrants and their families regarding remittances, after which any longer-range development consequences of remittances may result. Debate rages over the effects of remittances on development. This paper therefore reviews papers on the measurement of remittances and gives recent findings on the volume and direction of flows. It continues by considering evidence on the uses of remittances and their consequences for development, and closes with a discussion of policy options for increasing and channeling remittance flows.     

Overseas workers' remittances in Asian development

In recent years, overseas workers from Asia have been sending remittances of about $8 billion annually to their home countries. These remittances are an important source of precious foreign exchange for the major labor-exporting countries. The overall development impact of remittances, however, has not been well established. Remittances are spent primarily on day-to-day consumption expenditures, housing, land purchase, and debt repayment. Although only a small proportion of remittances are directed into productive investments, this does not warrant the conclusion that the developmental value of remittances is negligible. In fact, remittances spent on domestic goods and services Asia provide an important stimulus to indigenous industries and to the economies of the labor supplying countries. It is these broader macroeconomic benefits of remittances which seem to have been largely ignored in the literature, and this perhaps explains the pessimistic view of the developmental value of remittances. Reservations concerning the effects of remittance on the sending countries include the fears that 1) expenditure patterns of remittance receiving households may create a demonstration effect whereby nonmigrant households may increase consumption, 2) remittance inflow will increase income and wealth inequalities, 3) remittance expenditures may result in inflation, 4) remittances may produce only short-term fluctuations in long-term economic development, and 5) remittances may adversely affect agricultural development.     

Migrant remittances and household wellbeing in urban Zimbabwe

Evidence from household surveying in December 2005 in Harare and Bulawayo, Zimbabwe, indicates that a wide network of international migrant remitters are ameliorating the economic crisis in Zimbabwe by sending monetary and in-kind transfers to over 50 per cent of urban households. The research combines quantitative measurement of scale and scope, with demographic and qualitative narrative to build a holistic picture of the typography of receiving and non-receiving households. A complex set of interrelated variables helps to explain why some households do and others do not receive income and goods from people who are away, and the economic and social extent of their subsequent benefit from them. Moreover, the mixed methods approach is designed to capture inter-household and likely macroeconomic effects of how households receive their goods and money; and of how they subsequently exchange (if applicable), store and spend it. Evidence emerges of a largely informal, international social welfare system, but one which is not without adverse inter-household effects for some. These include suffering exclusion from markets suffering from inflationary pressures, not least as a result of other people’s remittances. This paper explores the role of remittances, within this internationalised informal welfare system which we can map from our household survey, in reframing vulnerability and marginalization differentially among and between our subject households.     

Migration,development and remittances in rural Mexico

The argument is that remittances to Mexico from migrants in the US contribute to household prosperity and lessen the balance of payments problem. The purpose of this article is to provide an overview of the incentives and constraints to development and individual economic well-being in rural Mexico. Examination is made of the financial amount of remittances, the use of remittances, the impact on development of remittances, models of migration, and migration historically. The viewpoint is that migration satisfies labor needs in developed countries to the detriment of underdeveloped countries. $2 billion a year are sent by illegal migrants from the US to Mexico. This sum is 4 times the net earning of Mexico's tourist trade. 21.1% of the Mexican population depend in part on money sent from the US. 79% of illegal migrants remitted money to relatives in Jalisco state. 70% of migrant families receive $170/month. In Guadalupe, 73% of families depended on migrant income. In Villa Guerrero, 50% of households depended on migrant income. Migrant income supported 1 out of 5 households in Mexico. Money is usually spent of household subsistence items. Sometimes money is also spent on community religious festivals, marriage ceremonies, and education of children or improved living conditions. Examples are given of money being used for investment in land and livestock. Migration affects community solidarity, and comparative ethic, and the influence on others to migrate. Employment opportunities are not expanded and cottage and community industries are threatened. Land purchases did not result in land improvements. Migration models are deficient. There is a macro/micro dichotomy. The push-and-pull system is not controllable by individual migrants. The migration remittance model is a product of unequal development and a mechanism feeding migration. Mexican migration has occurred since the 1880's; seasonal migration was encouraged. There was coercion to return to Mexico after the economic recession of World War I; the door was firmly closely during the Great Depression of 1929-35. The 1980 estimates of illegal Mexican migrants totaled 2-9 million, which is the largest flow in the world. US industrial presence and Mexican development have reinforced migration flows. Regional and international capitalist requirements govern migration.     

Protection of Migrants' Human Rights: Principles and Practice

In principle, migrants enjoy the protection of international law. Key human rights instruments oblige the States Parties to extend their protection to all human beings. Such important treaties as the International Covenant on Civil and Political Rights, and the International Covenant on Economic, Social and Cultural Rights have been ratified by more than 140 states, but many political, social or economic obstacles seem to stand in the way of offering those rights to migrants. In an attempt to bridge this protection gap, the more specifically targeted International Convention on the Protection of All Migrant Workers and Members of their Families was created and adopted by the United Nations in 1990. This treaty is not yet in force, but the number of States Parties is increasing towards the required 20. In the past few years the human rights machinery of the United Nations has increased its attention towards migrants' human rights, appointing in 1999 the Special Rapporteur on the Human Rights of Migrants. Governments, as the acceding parties to international human rights instruments, remain the principal actors as guardians of the human rights of all individuals residing in their territories. Receiving countries are in a key position in the protection of the migrants that they host. However, active defence of migrants' rights is politically difficult in many countries where anti‐immigrant factions are influential. Trafficking in migrants is one example of the complexity faced by states in formulating their migration policies. On the one hand, trafficking has made governments increasingly act together and combine both enforcement and protection. On the other, trafficking, with its easily acceptable human rights concerns, is often separated from the more migration‐related human smuggling. The latter is a more contentious issue, related also to unofficial interests in utilizing cheap undocumented immigrant labour.     

The Politics of Migrants' Transnational Political Practices

This article critically examines transnational political engagement of migrants and refugees in local, national and global political processes. Based on inductive reading of existing scholarship and in particular the author's own research on Turks and Kurds in Europe, the article discusses key concepts and trends in our understanding of why, how and with what consequences migrants engage in transnational political practices. These practices, this article suggests, are influenced by the particular multilevel institutional environment, which migrant political actors negotiate their way through. This environment includes not only political institutions in the sending and receiving country, but also global norms and institutions and networks of other nonstate actors. Finally, the article argues for critical examination of the democratic transparency and accountability of migrants' transnational networks in any analysis of their long and short‐term impact on domestic and global politics.     

Chinese Migrants' Class Mobility in Hong Kong

Resources such as education and social networks are likely to contribute to migrants' upward mobility in the class hierarchy. Moreover, according to structural fit theory, the contribution tends to be contingent on age and social network size. The contingency is the major concern of the present study of mainland Chinese migrants in Hong Kong, which is somewhat different from the Chinese mainland economically, politically and even culturally. In this study, we show that the conditions for upward mobility are some human and social resources and their various combinations. Notably, schooling after arrival in Hong Kong contributed more to the upward mobility of the migrant who was younger or had a larger social network at the time of arrival in Hong Kong. Purportedly, promoting the migrant's integration with the school and local social network would prepare the migrant for upward mobility.     

Patterns of remittances and labor migration in the Arab world

This is a review of the history of labor migration as it has affected the Arab world from the oil boom of the early 1970s to the present, with particular attention to the changing flow of remittances from migrants to their country of origin. (SUMMARY IN FRE AND SPA)     

Refugee remittances: conceptual issues and the Cuban and Nicaraguan experiences

"This article assesses the notion that the determinants of remittances generated by refugee flows, particularly from Communist-inspired systems, are different from those associated with labor migrations....These differences have a major bearing on how labor migrants and refugees perceive their relationship with countries of origin. The propensity of labor migrants to dissociate themselves from the home country is considerably less than among refugees whose perceptions are mediated by opposition to the ruling regime and other factors, such as political relations between refugee-sending and refugee-receiving countries and whether or not there has been a regime change or one is expected to occur. The conceptual issues elaborated here are based on the Cuban-American experience, but also reflect an assessment of Nicaraguan emigration during the 1980s."     

The impact of migrants' remittances on the Egyptian economy

"The main objective of this paper is to evaluate the impact of the large remittances made by Egyptian migrants to their home country on the Egyptian economy. In order to study this impact, we use the implications of the standard Keynesian model. We estimated the structural equations of the model using annual data for the Egyptian economy over the period from 1970 to 1984.... The results suggest that remittances have had a strong positive impact on GNP in Egypt." The authors note that remittances especially affect private consumption spending. Policy implications concerning labor migration are discussed. (SUMMARY IN FRE AND SPA)     

Factors determining migrant remittances: the case of Greece

"In this study we review the literature regarding the theory and the empirical evidence regarding migrants' remittance behavior, and we examine the flow and determinants of remittances from Greek migrants for the period 1961 to 1991. The main body of data is for remittances to Greece from Germany, but for some years data are available for remittances from Belgium and Sweden as well. The objective of this study is to test the significance of certain factors in terms of their effects on remittances to Greece. These factors are the migrant's income, the migrant's family income, the rate of unemployment, the rate of interest, the exchange rate, and the rate of inflation. The study attempts to see if these factors have had any effect on the volume of remittances. It also attempts to see if there are any structural changes during this period that affect migrants' propensity to remit."     

A Model of Migrants' Remittances with Human Capital Investment and Intrafimilial Transfers1

This study analyzes data on migrants' remittances using a two‐period theory of intergenerational transfers based on an informal, intrafamilial loan arrangement using “weak altruism,” a behavior between “strong altruism” and pure self‐interest. The model provides an integrated theory of migrants' remittances, human capital investment decisions, and intrafamilial transfers applicable to low‐income countries with no official pension schemes and imperfect capital markets. Propositions, derived from the theory, are tested, re‐analyzing original survey data on remittances of Pacific island migrants in Sydney. When weak altruism and strong altruism yield opposite predictions, the econometric results tend to confirm the former hypothesis and invalidate the latter.     

Determinants of savings and remittances: empirical evidence from immigrants to Germany

This paper investigates the determinants of migrants’ financial transfers to their home country using German data. A double-hurdle model is applied to analyze the determinants of the propensity to send transfers to the country of origin and the amount of transfers. The findings reveal that return intentions positively affect financial transfers of immigrants to their home country. The results of a decomposition analysis suggest that only a small part of the gap in financial transfers between temporary and permanent migrants can be attributed to differences in observable characteristics.     

Contextualizing Migrants' Strategies of Seeking Medical Care in Russia*

Russia is an important destination for labour migrants from the former Soviet Union republics especially Central Asian low‐income countries: Kyrgyzstan, Tajikistan, and Uzbekistan. The life of migrants from Central Asia is characterized in Russia by scarce resources and social exclusion. Limited access to healthcare is aggravated by the negative attitudes and discrimination that migrants face when visiting state hospitals and clinics. In our study, we aim to describe the medical infrastructure available to migrants in Moscow. We investigate how migrants use formal and informal strategies to overcome the barriers to their receiving medical care in the urban environment. The study is based on the analysis of qualitative interviews with 60 labour migrants from Central Asian countries and 23 caregivers working in Moscow‐based medical facilities such as state hospitals, outpatient clinics, ambulance stations, and private medical centres including the so‐called Kyrgyz clinics.     

Migrants' entrepreneurship in transnational social fields: research in the Italian context

The aim of the article is to analyse the development of transnational economic activities run by migrants in Northern Italy. It is based on qualitative empirical research conducted in the three most important cities in northern Italy: Milan, Genoa, and Turin.

The article describes different kinds of transnational economic activity, identifying the subject of transnational transactions; the main clients (immigrant population or native population); the goods or services exchanged and their transnational impact; the expected social effects; and their positioning on a scale of transnational involvement.

The empirical cases considered are overland courier services on routes from Milan to Eastern Europe, shops owned by immigrants who offer ‘ethnic’ products in Milan and Genoa, and phone centres run by immigrants in Turin.

In the conclusion, the reactions of the receiving society and the question of public regulation are examined.     

Social remittances: migration driven local-level forms of cultural diffusion

"Many studies highlight the macro-level dissemination of global culture and institutions. This article focuses on social remittances--a local-level, migration-driven form of cultural diffusion. Social remittances are the ideas, behaviors, identities, and social capital that flow from receiving- to sending-country communities. The role that these resources play in promoting immigrant entrepreneurship, community and family formation, and political integration is widely acknowledged. This article specifies how these same ideas and practices are remolded in receiving countries, the mechanisms by which they are sent back to sending communities, and the role they play in transforming sending-country social and political life." The data concern migrants from the Dominican Republic to the Boston area of the United States.     

International Labour Migrants' Return to Meiji-era Yamaguchi and Hiroshima: Economic and Social Effects

International labour migration from Meiji era (1868–1912) Japan was intensely concentrated: over 60 per cent of the 29,000 participants in the government-managed Hawai'i emigration programme ( kan'yaku imin , 1885–1894) came from seven coastal counties around the Hiroshima-Yamaguchi prefectural border in southwest Japan. Almost half of the emigrants became long-term settlers instead of returning to their hometowns, but this paper examines what happened to returning emigrants and to their home communities. Since the migration was primarily economic in nature, the effect of migrant earnings was carefully monitored and is frequently cited by scholars. Surveys showed high rates of debt repayment and savings, and improved living conditions, but investment and entrepreneurship were limited. High-emigration regions rarely became economic centers of any importance. Less carefully studied are non-economic effects, partially because the labour programme was structured to minimize contact with Hawaiian or Caucasian culture, and thus returnees had little cultural experience to transfer to their hometowns. Local officials in Yamaguchi seemed proud of the lack of social change. Even long-term sojourners, who returned due to family needs after a decade or more overseas, exhibited no readjustment difficulties. Returnees, particularly in Yamaguchi, sometimes moved on to Japanese colonial territories, creating multilateral and complex relationships with overseas communities. This sojourning migration, like contemporary analogs, was a powerful form of poverty relief in the midst of dislocating globalization, but did not produce a rise in entrepreneurship or a Westernization of local culture. Because this sojourning migration was structurally similar to our modern-day patterns, it provides evidence of the longevity of those patterns and the possible long-term effects, and raises questions about our expectations for migration policy.     

Macroeconomic impacts of worker remittances on Arab world labor exporting countries

The author discusses the effect of remittances from workers in oil-producing states in the Arab world on macroeconomic development patterns in non-oil-producing regions. Consideration is given to the impact of remittances on consumption and domestic growth and their interrelationships with foreign exchange. (SUMMARY IN FRE AND SPA)