Migration Remittances And Development In Lesotho

The relationship between migration, development and remittances in Lesotho has been exhaustively studied for the period up to 1990. This was an era when the vast majority of migrants from Lesotho were young men working on the South African gold mines and over 50 percent of households had a migrant mineworker. Since 1990, patterns of migration to South Africa have changed dramatically. The reconfiguration of migration between the two countries has had a marked impact on remittance flows to Lesotho. The central question addressed in this report is how the change in patterns of migration from and within Lesotho since 1990 has impacted on remittance flows and usage.

Migrant remittances are a focus of attention worldwide, with debates raging on their impact on poverty alleviation. Less well known is that over a third of remittances to underdeveloped countries originate in other developing countries. Remittances as goods and commodities, and remittances from urban to rural areas are important. This is the case in the southern African region where cross-border migration is commonplace. Remittances to Africa easily exceed development aid, yet the comparative research and publication interest is paltry. The southern African context suffers particularly from a paucity of data. This survey provides information on the profile of the migrant population, remittance flows and usage at household level in five SADC countries, Botswana, Lesotho, Mozambique, Swaziland and Zimbabwe. It considers remittances both within the region and from Africans in the diaspora. Further factors under consideration are gender, age, education level and tradition.

The relationship between migration, development and remittances in Lesotho has been exhaustively studied for the period up to 1990. This was an era when the vast majority of migrants from Lesotho were young men working on the South African gold mines and over 50 percent of households had a migrant mineworker. Since 1990, patterns of migration to South Africa have changed dramatically. The reconfiguration of migration between the two countries has had a marked impact on remittance flows to Lesotho. The central question addressed in this report is how the change in patterns of migration from and within Lesotho since 1990 has impacted on remittance flows and usage.

Highlights the ways in which the development potential of remittances could be most effiectively used, while avoiding the possible risks. In doing so, it seeks to help promote a more balanced approach to the issue of remittances and development, which, as indicated above, is now high on the global economic agenda.

Migrant remittances are now recognised as an important source of global development finance and there is increasing evidence that international remittances have considerable developmental impacts. The contribution of remittances to GDP in many developing countries is significant and has shown a steady increase over the past decade. However, while there is a consensus that remittance flows to Africa are increasing, little attention has been paid to the impact of these transfers on poverty alleviation, primarily because of data deficiencies at the household level. Despite their obvious magnitude, accurate data on remittance flows to Zimbabwe is unavailable or inaccessible. In an attempt to address such data deficiencies, SAMP devised the household-level Migration and Remittances Survey (MARS) which was administered in several SADC countries, including Zimbabwe. The MARS study was implemented in Zimbabwe in 2005 and surveyed 723 urban and rural households.

A joint effort led by the African Development Bank and the World Bank, 'Leveraging Migration for Africa' is the first comprehensive publication on harnessing migration, remittances, and other diaspora resources for the development of Africa. It comes at a time when countries in Africa and elsewhere are grappling with difficult choices on how to manage migration. Policy makers can help leverage the contributions of migrants to the development of Africa, reduce remittance costs, improve the efficiency of remittance markets in both origin and destination countries, and address the needs of the origin countries without restricting the emigration of high-skilled professionals. Innovative financing mechanisms such as issuance of diaspora bonds and securitization of future remittance flows can help finance big-ticket projects, such as railways, roads, power plants, and institutions of higher learning that will, step by step, help to transform Africa. This volume contributes to a greater understanding of migration and its potential role in Africa’s development.

Remittances remain a key source of funds for developing countries, far exceeding official development assistance and even foreign direct investment. Remittances have proved to be more stable than private debt and portfolio equity flows, and less volatile than official aid flows, and their annual flow can match or surpass foreign exchange reserves in many small countries. Even in large emerging markets, such as India, remittances are equivalent to at least a quarter of total foreign exchange reserves. India, China, Philippines and Mexico are the top recipients of migrant remittances. The Migration and Remittances Factbook 2016 attempts to present numbers and facts behind the stories of international migration and remittances, drawing on authoritative, publicly available data. It provides a snapshot of statistics on immigration, emigration, skilled emigration, and remittance flows for 210 countries and 15 regional and income groups. The Migration and Remittances Factbook 2016 updates the 2011 edition of the Factbook with additional data on bilateral migration and remittances and second generation diasporas, collected from various sources, including national censuses, labor force surveys, population registers, and other national sources.