Migrant transnationalism and the choice of transfer channels for remittances: the case of Moldova

Migrant remittances, particularly when transferred through the banking system, may contribute to financial development in migrants' home countries. We analyse the determinants of the choice of transfer channel (formal services versus informal operators or personal transfers) by Moldovan migrants in 2006. We estimate a multinomial logit model from household survey data. Our explanatory variables include socio‐economic characteristics of the migrant and other household members, the pattern of migration (destination country, legal status, duration), and financial information (average amount and frequency of payments). Key reasons not to use a formal transfer channel are a migrant's emphasis on low transfer cost (rather than speed, convenience or security), irregular legal status in the host country, and short migration spells. Our findings demonstrate that migrants' transnational capacities and activities in their entirety bear upon the choice of transfer channel; any policy interventions to promote the use of formal channels should reflect this.     

Beyond control? The mechanics and dynamics of ‘informal’ remittances between Europe and Africa

Abstract Policy making usually assumes that the best way to harness migrant remittances for development is by shifting them into the regulated money transfer sector. However, much research evidence concludes that alternative methods are often cheaper and more reliable, accessible and convenient. In this article, we explore this tension between policy objectives and evidence. Based on a review of remittance mechanisms in seven sub‐Saharan African countries, we question the validity of the distinction between ‘formal’ and ‘informal’ remittances. We conclude that the formalization of remittance systems should not be approached as a regulatory task carried out from the top down, but as a bottom‐up evolutionary and organic process that should be encouraged. We suggest that the current regulatory thrust in this area is likely to be counterproductive, since it risks undermining the many vibrant institutions emerging through the movement of migrants and their money, together with their potential to enhance much needed economic and social development.     

‘Cukup for me to be successful in this country’: ‘staying’ among left‐behind young women in Indonesia's migrant‐sending villages

By examining the aspirations of young, rural Indonesian women who, unlike their parents, want to stay behind rather than migrate for work, we look at how these women's experiences of feeling left‐behind affect their quests for alternative futures. Using a household relational lens, we employ the mediating concept of enough (cukup) to analyse the aspirations of young women wishing to remain at home. By focusing on their commitment to inter‐generational continuity and care rather than a lack of choice, we are able to offset the discourses associated with the culture of migration and its accompanying remittance euphoria. Our findings showed three main reasons for their choice. First, these young women pursue remittance‐funded higher education as a counter to parental sacrifice. Second, staying allows them both to provide the hands‐on care they themselves were denied as children and to pursue meaningful local careers. Third, the idea that migration has been ‘enough’ is a rational response to the social risks with which migration confronts a family.