Author: Victoria Halburd
Halburd, Victoria, 2018 The role of remittances in improving family wellbeing and supporting the transition to sustainable livelihoods., Flinders University, College of Humanities, Arts and Social Sciences
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In 2017 remittances totalled US$ 613 billion, three quarters of which ended up in low and middle income countries. The rapid growth and relative stability of remittances positions them as a critical driver of future development. This thesis uses quantitative and qualitative measures of macro- and micro-economic data to investigate the role of remittances in improving family wellbeing and supporting the transition to sustainable livelihoods. For comparison, two country case studies were examined; Tonga a country with high levels of human development and a demonstrated history of remittance motivated migration and Timor-Leste, a relatively new country with medium levels of human development and an emerging emigrant community.
The new economics of labour migration theory or NELM is used to understand migration and remittances as products of a household strategy to diversify their resources in order to minimise risks while maximising income. The findings of the research suggest that remittances perform a central role in improving well-being in recipient households. The findings also indicate that the utilisation of remittances shifts over time, maturing from expenditure on daily consumption to investment in small and medium businesses. This affirms the assumption that remittances support families in transitioning to more sustainable livelihoods through the diversification of household income, making them less susceptible to stresses and shocks.
The research also established that both positive and negative effects of remittances extend beyond the household to the wider community ranging from employment opportunities and stimulation of the local economy to increased household inequality. The research findings suggest that the potential of remittances as a tool for development is tremendous and advises governments to engage their respective diasporas and those involved in the migration and remittance process to ensure the greatest benefits.
Keywords: remittances, wellbeing, sustainable livelihoods, Timor-Leste, Tonga, new economics of labour migration, NELM, seasonal worker programme
Subject: Development Studies thesis
Thesis type: Masters
Completed: 2018
School: College of Humanities, Arts and Social Sciences
Supervisor: Udoy Saikia