MIGRANTS REMITTANCES, SAVINGS AND INVESTMENT IN THE SOUTH-PACIFIC

The author presents the results of ILO surveys into the motivation and use of remittances by migrants from Tonga and Western Samoa. His analysis shows that, contrary to the generally accepted view, remittances are not only used for immediate consumption but also for savings and investment. More funds are remitted when they are intended for savings and investment than when they are primarily for family consumption. Since remittances are often transferred through informal channels, however, the important contribution migrants make to savings and investment in their home country is easily overlooked. Yet both level and use are sensitive to real interest at home.