Impact of International Migrants’ Remittances on Socio-economic Development: The Case of Hadiya Zone, Hossana Town

Abstract

Migration and remittances are always going side by side. This is because; most of the migrants are aimed to cross the border of their country by need of better life for themselves and their family, especially in non-developed countries. This study was therefore, aimed to investigate the impact of international migrants’ remittances on socio-economic development at Hossana town. The study was administered by using both qualitative and quantitative approaches to data collection and analysis. Qualitative method was employed with 35 discussants by using purposive sampling technique and quantitative approach employed with 75 informants by using purposive sampling technique. Throughout this study the researchers was used both primary and secondary sources of data through survey, FGDs, in-depth interviews, key informant interviews and non-participant observation. The major findings indicated that international migrants’ remittances have a positive impact for the socio-economic development in the study area unless some limitations. With regards to social base; because of the people indigenous social relationship was less occurred and instead formal ruled based relationship has been dominantly seen. More importantly it has a very clear positive impact on Hossana’s town economic development, but it should need some corrective actions that have to be taken from the concerned individuals. Therefore, the study recommended that governmental bodies and concerned individuals have to: provide awareness creating trainings for local leaders to keep their indigenous social capital, incorporate indigenous culture and cultural values in education curriculum, anticipate remittances senders rate and prepare plan accordingly, providing investment land for returned and remitted groups according to their capital credibility, providing trainings on basic business making principles and entrepreneurship and negotiate with remittance senders seat countries to have legal money transaction channels. And discuss with the remitted and returned migrants to: establish and invest on value added activities, have a confidence to investing on complex business