Remittances from labor migration: evaluations,performance and implications

2 evaluative views of worker remittances draw opposite conclusions. The negative one posits that remittances increase dependency, contribute to economic and political stability and development distortion, and lead to economic decline that overshadows a temporary advantage for a fortunate few. The positive view sees remittances as an effective response to market forces, providing a transition to an otherwise unsustainable development. They improve income distribution and quality of life beyond what other available development resources could deliver. The implications are tested for labor supply countries to Europe and the Middle East. The implications of the negative are not supported. Although the dire predictions of the pessimistic view have not materialized, the converse - contributions of remittances to economic performance - should not be overstated due to a lack of data.     

Migration and development: myths and reality

Recent research on the impact of labor migration on the socioeconomic development of developing countries has provided opportunity to try and resolve some of the long-standing polemics that have pervaded the literature on migration and development. This article focuses on findings concerning the labor, remittance, and social impacts of emigration on countries that have participated in labor emigration. While a great deal more research needs to be done, recent findings confirm that in some situations the sort-term impacts of labor migration on sending countries have been considerable.     

The right to life

In this issue is a lengthy, thought-provoking essay on the issues raised by unwanted pregnancy. Written by Robert Wennberg in 1984 for the Christian Scholar's Review (13:4), the article has been edited and condensed for our purposes and is quite relevant, I believe, for the student health population. Any practitioner who cares for students wrestling with these issues should at least acknowledge the moral and philosophical dilemmas presented. As one who has walked both sides of the argument, I find Wennberg's fair-mindedness compelling. In closing his article, the author raises the question of what will happen when it becomes possible to accomplish an "abortion"--or removal of the fetus from the mother--without killing the fetus. Will this procedure be acceptable to the average single college student? The New York Times, in an article on "High Tech Babies" (February 21, 1986), raised ethical questions posed by the technology of frozen embryos. Who decides what is to be done with frozen embryos? To whom do they belong? Do they have rights? The theoretical issues raised by Wennberg are already forcing themselves upon us. Whether we like it or not, the future is now. Regardless of your beliefs on this controversial topic, I urge you to read this article. Dr. Wennberg has also just completed a book on this subject, Life In The Balance.     

Some quantitative concepts of value and utility from a utilitarian point of view

This paper clarifies and interprets some basic quantitative concepts of value, utility and utility function from a utilitarian point of view. First, I discuss the question as to whether value is objective or subjective. I hold that value is subjective and statistical in nature (although from the various subjective values of a certain object a norm can usually be obtained). Second, I emphasize the distinction between use value and exchange value in relation to utility. Third, I propose a law of diminishing incremental interest, which refers to the incremental (marginal) utility of money. Fourth, I identify the utility of money with the von Neumann-Morgenstern utility. Fifth, I question the necessity of the usual normalization of utility functions and the restricted linear transformation (and the consequent concept of strategic equivalence). Sixth, I discuss in detail the terminal values and utilities of a utility function from a philosophical rather than mathematical point of view, particularly the boundedness of a utility function and the magnitudes of V ₀ and U ₀. Finally, I conclude that, in order to be able to have interpersonal comparisons of utility, utility should have the same dimension as value rather than no dimension, and the normalization problem should be reconsidered in the light of terminal values and utilities.     

Retrospective on the utility theory of von Neumann and Morgenstern

This article offers an exegesis of the passages in von Neumann and Morgenstern (1944, 1947, 1953) that discuss their conception of utility. It is occasioned by two factors. First, as we approach the semicentennial of the publication of Theory of Games and Economic Behavior, its immense impact on economic thought in the intervening years encourages serious reflection on its authors' ideas. Second, misleading statements about the theory continue to appear. The article will have accomplished its purpose if it helps others appreciate the genius and spirit of the theory of utility fashioned by John von Neumann and Oskar Morgenstern.     

The technique of participatory research in community development

The technique of participatory research in community development is based on the involvement of the beneficiaries of the research in the entire research process, including the formulation of the research design, the collection of data, interpretation of information collected, and the analysis of findings. Thus, research teams utilizing this approach are composed of villagers, farmers, unemployed people, local leaders, and educators. The research process thus offers an educational experience that helps to identify community needs and motivate community members to become committed to the solution of their own problems. Moreover, this approach challenges the prevalent notion that only professional researchers can generate knowledge for meaningful social reform. A participatory research technique, based on the concept of citizen enlightenment for community development, was adopted by the Department of Adult Education at the University of Ibadan in a study of rural poverty in Oyo State's Apasan villages. The research team, comprised of local leaders, peasant farmers, teachers, local students, and university students, identified the villages' isolation and food scarcity as major causes of poverty. 2 actions were taken in response to these findings: 1) the construction of a road linking the Apasan communities with the State capital, enabling villagers to travel to the town, sell their goods, and purchase needed items; and 2) formation of a primary cooperative society for multipurpose farming. These actions have solved the food problem, improved the villagers' earning capacity, and resulted in the return of numerous villagers who had migrated to towns to find wage employment. Because the villagers were directly involved in the study of their problems, they were able to become more aware of their social reality and make the changes needed to lift them out of poverty.     

Problems and possibilities of development work among tribals: a participatory evaluation of a voluntary agency in India

Mandal, a church-related non-governmental voluntary agency operating in north-west India's Nasik district since 1966 was evaluated for performance in promoting self-sustaining economic growth and socio- political awareness in its beneficiaries. The research design incorporated 2 questions, the extent to which Mandal had used the integrated approach, and the extent to which it promoted structural change in the village. 2 levels of analysis were used: random samples of 315 individuals (163 beneficiaries and 152 non-beneficiaries) and data from the takatu's office for 20 involved villages and 8 control villages. Quantitative data were sought by examining files and doing closed interviews, and qualitative data were collected by observation and open-ended interviews. The variables used in the analysis were educational level, class category, caste, agricultural investment, family net income, individual consciousness and social participation. It was concluded that on the individual level some positive impact was discernible in terms of family income and agricultural investment. At the village level no quantitative improvement was measurable, but the effect of Mandal was symbolic in that it sets an example for social change. The Mandal has acquired a health, non-partisan secular image for social action.     

Modern family planning,sexual behavior and marriage status among women in Tanzania

"This article looks into sexual behavior and marriage status among women attending Mother and Child Health Care clinics in Tanzania. It looks into the effects of such behavior on the marriage and suggests some policy implications, especially in relation to modern family planning methods. The data which form the basis of this article were collected [in 1987] among 244 women in two urban centers in Tanzania."     

Manpower export and economic development: evidence from the Philippines

The Philippines has actively pursued a policy of labor export with the expectation that it would relieve unemployment, augment the supply of skills, and relieve pressure on the balance of payments. It was also anticipated that the inflow of overseas workers' remittances would translate into increased investment, the sine qua non for economic development. However, recent evidence casts some doubt on the extent to which these goals have been achieved. Particularly in the areas of skill formation, there appears to be a significant discrepancy between anticipated and actual outcomes. Indeed, it appears that the labor export may reduce the supply of skills available since 1) many skilled and educated workers are taking jobs requiring skill levels lower than they possess, and 2) a large majority of returning workers do not want to take up employment in those occupations reliant on the skills they used abroad. There is conflicting evidence regarding the impact of labor export on Philippine industries. There is some anecdotal evidence that a few industries have suffered because of a loss of key workers. In general, however, it appears that unemployment is still quite significant in those occupations most heavily represented in labor export. Despite this observation, it may still be true that labor emigration is selective of only the best workers, implying a decline in quality of the work force and possibly productivity in certain industries. The export of professional, technical, and managerial workers is another issue. Unless it can be shown that these workers are in excess supply, it is not advisable to expand the number going abroad. Although their salaries may be higher, and hence their remittances greater, their loss can impose costs on indigenous industries well in excess of a any marginal gains. Remittances from overseas workers do constitute a relatively significant source of foreign exchange. However, the translation of remittances into investment has been restrained by the very low propensity of remittance recipients and returnees to undertake productive investment and by the diversion of remittances from formal banking channels into informal channels. Remittances which are being channeled through the formal banking sector constitute a potentially important source of loan funds, as well as providing a potential stimulus to indigenous industry.