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.     

Insularity and Governance: The Case of French Polynesia

Insularity, smallness and remoteness help explain specific tendencies noted in the governance of French Polynesia, a partially self-governing French overseas territory in the South Pacific, with a population of 220,000. Professional relations tend to become personalized, and impersonal and impartial procedures are hard to apply. The market for experts is small: some people are able to claim a monopoly on some type of expertise and then defend it by every means. Solidarity is vertical, not horizontal, which makes for a fragile democracy.