28 January 2014

Profitable Migration ~ Studying Remittance Capital

Michael Clemens at the Center for Global Development says It’s Time to Learn More about How Poor Families Use Migration...
"Remittances are huge -- about triple the size of foreign aid flows. That’s a big opportunity for development. But much of the research on remittances focuses on why they are primarily spent on consumption, and how governments and NGOs can get people to invest remittances. [...] Remittances are not a windfall like lottery winnings. For many low-income families, they are a return on investment. Migration is one of many financial tools they juggle to smooth income and consumption. Migration often involves a family member moving to access a different labor market, and that household is investing in an asset, bearing up-front costs for uncertain future benefits. Remittances therefore are part of the family’s [ROI]"
Fantastically important to study more! See further research.

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