EDIAIS : Conference papers

Development Of A Framework For Assessing The Socio-Economic Impact Of Migrant Workers' Remittances On Poverty Reduction (FAIR: Framework For Assessing The Impact Of Remittances)

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ABSTRACT

Remittances can be seen as a form of private financial aid, which not only flows straight into the pockets of low-income households, including the rural poor, but also come without strings attached and incurring no debt. Further, migrants returning home frequently take with them lump cash sums, which are often used to make a significant capital input into local economies. They also take home with them new ideas that impact on the economic and social fabric and structures of their home communities. The overall objective of this Research Study has been to develop a conceptual framework and methodology for assessing the impact of migrant workers' remittances on poverty reduction, together with research tools and practical guidelines to assist practitioners in the implementation of that framework. The study has included: · Identification of contextual social and economic factors and issues determining and affecting the impact of remittances on poverty at community, household and individual levels · Differences in impact of use of remittances for consumption and productive investment · Review of potential socio-economic indicators of impact and discussion about their relevance and suitability for assessment in the various contexts and at these three levels · An overall strategy and framework for practical implementation of FAIR · Design of checklists and other tools appropriate to measuring impact against the identified indicators Within the broad objective of developing a simple, clear and concise conceptual framework for assessing impact of a complex issue, we have also sought to incorporate a 'snapshot' approach that enables timely and lower-cost feedback, whilst maintaining a reasonable indication of impact. The Report that is to be presented to DFID in Sept 2003 represents the outcome of the first phase of the study, which is to design the framework and tools. It also makes recommendations for design and implementation of the second phase that will be to test the framework in a variety of situations. An underpinning principle of our approach to designing FAIR has been that it should facilitate learning from the findings in order to inform policy made by governments of the remittance-sending and receiving countries as well as donors and other international organisations. The framework examines indicators of impact in the context of three developmental approaches: sustainable livelihoods, rights based approaches, and market accessibility. It also incorporates gender and generational differences in impact.

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