Remittances

 

Remittances

Although remittances are not the focus of this study, the last part of the study includes two chapters looking at remittances in the case of the Republic of Yemen. There is evidence in the literature that migration and remittances tend to increase in response to climate shocks, so that both may function as coping

mechanisms. It is not clear however whether remittances are likely to be higher in areas that suffer from poor climate in the absence of weather shocks. The first chapter in the last part of the study by Joseph et al. (2014a) use a national household survey for the Republic of Yemen combined with weather data to measure remittance flows, both domestic and international, and assess the likelihood of households receiving remittances as well as the amounts received. The questions whether households living in less favorable areas in terms of climate (as measured through higher temperatures, lower rainfalls, more variability or seasonality in both, and larger differences in a given year between extreme temperatures)are more likely to benefit from remittances. The results suggest that this is not the case in the Republic of Yemen.In the last chapter of the study, Joseph and Codon (2014b) use matching techniques and the same household survey for the Republic of Yemen combined with weather data to measure the impact of remittances, both domestic andinternational, on poverty and human development outcomes (school immunisation, and malnutrition). The estimations are carried both nationally and in areas with favorable and unfavorable climate. Four main results are obtained. First, remittances—which are substantial in the Republic of Yemen—tend to have positive impacts on poverty measures, school enrollment, and measures of malnutrition. Second, the impact of international remittances tends tobe larger than that of domestic remittances, probably because among beneficiaries,the amount of remittances received tends to be higher for international than for domestic remittances. Third, the impact of remittances—and especially international remittances—on measures of poverty and malnutrition tends to be larger in areas affected by high temperatures, and also to some extent in areas with lower levels of rainfall, which in both cases tend to be more vulnerable.Fourth, and by contrast, in areas with higher levels of rainfall or lower levels of temperatures, where issues of poverty and malnutrition may be less severe,remittances—and again especially international remittances—tend to have larger impact on school enrollment. Thus, in areas with unfavorable climate,remittances help first for meeting basic needs in order to escape poverty and

malnutrition, while in areas with more favorable climate, remittances may bemused more for investments, including in the education of children.The qualitative work (Grant et al. 2014) also suggests that remittances are important to rural households, especially in rural the Republic of Yemen where there is a long-standing tradition of migration to Saudi Arabia. They allow households to enjoy a reasonably high standard of living, but conversely consequence scan be severed in their absence: “My brother is in Saudi Arabia. He used to send me money all of the time and we were well off, even when I wasn’t working.[But] we lost the house and everything we [owned] because of the discontinuity of these aids. We live at God’s mercy” (Male, 30–45 years old, Thursday, the Republic of Yemen). By contrast, participants in focus groups from Morocco and

Algeria did not depend on remittances as much, with only a few saying that they receive remittances from relatives. Similarly some Algerian rural residents received remittances from relatives who have migrated to France. In Egypt, items such as ghee, oil, bread, flour, and sugar are purchased for families in addition to funds being sent directly to homes. The amounts of the transfers sent by migrants back home vary. In Morocco remittances ranged from 500 to 1,000 Moroccan per month, depending on the migrant’s income. Male respondents tended to remit more than females. For most, providing remittances for their family wasa moral obligation. “They [our families] are in a terrible situation. Sometimes they call us to send money each month. Sometimes, I go without dinner or not spend much needed money on myself so I can send money to my family. Without money, they cannot eat. They would have no money for the souk to get food to eat” (Female, 20–25 years old, Casablanca, Morocco