Abstract
Most developing countries are riddled with socio-economic woes that pose a challenge to livelihoods. These challenges negatively affect income levels of individuals and households, limiting their access to economic opportunities. Households often strategise to sustain their livelihoods, and one of such option is migration of a member, domestically or internationally. Migration can be individual or household strategy for survival therefore remittances have a role to play in adjusting the household income. Making use of ordinary least squares estimation techniques, this article examines how families use migration as a survival technique based on survey data from small mining town of Chegutu located in Mashonaland West Province of Zimbabwe. We found out that remittances go a long way in providing income for basic services like municipal services, food, medical expenses. Furthermore, remittances also tend to influence behavioural change among households- making them consume more status oriented goods and services. The findings have implications to how policy makers view migration and development- migration should not be viewed negatively as in the past since it can help meet developmental needs of the receiving community through sustainability of family livelihoods. Policy should rather necessitate frictionless flow of these funds by reducing costs and unnecessary regulatory requirements.
Highlights
Introduction and BackgroundAcross literature and the policy arena there is a growing consensus that migrants play a key role in resource mobilisation and development of the country of origin
The dwelling size is on average five rooms which is a great improvement to the average double room per household (BHP provided mainly double rooms and some few single and four roomed houses)
2 IOM INFO SHEET, Available online: http://www.iom.int/jahia/webdav/site/myjahiasite/shared/shared/mainsite/published_docs/brochures_and_info_sheets/IOM_Remittance_eng_pdf.pdf; Focusing on the income variables, there is great variation in income per capita excluding remittances (US$232 compared to US$84 of income including remittances) indicating how remittances help stabilise income flow. Those receiving remittances are likely to have a stable and more reliable income which is very crucial in household budgeting and sustainability of livelihood
Summary
Introduction and BackgroundAcross literature and the policy arena there is a growing consensus that migrants play a key role in resource mobilisation and development of the country of origin. The deride of remittances in policy circles emanates from some arguments that, migrants often play an active role in the political debate and civil society in countries of origin, (see for example Nyberg-Sorensen et al, 2002 as well as Van Hear, 2004) The case of this assertion is inconclusive according to Guarnizo et al (2003) who argued that the designs of the case studies were biased towards minority group of transnationally active migrants. This is as a result that empirical literature on the significance of migration as a survival strategy and remittances as key component in sustainability of family livelihoods in many countries is scant. Literature reports three different views on how remittance income are spent, which are: remittances are spent mainly on “status oriented” consumption goods than investment, (Chami, Fullenkamp & Jahjah, 2003); remittance income is fungible it can be spent like any other cent received from labour, sales or transfer payments; and lastly remittances are considered transitory and are spent on investment rather than consumption (Adams Jr and Cuecuecha, 2010)
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