The Impact of Regional Migration and Remittances on Development: The Case of Zimbabwe
This paper highlights issues related to international labor mobility. It studies global patterns in the impact of migration and remittances on development, and draws out lessons relevant to Zimbabwe.
The paper gives an overview of linkages between remittances and development in developing countries. It discusses the experiences of the Philippines, Mexico, China and India with regard to migration. It traces the five phases in migration from Zimbabwe and studies remittance flows and utilization in the country. Findings and observations include:
- Remittances that are invested or saved have a multiplier effect on the economy and aid development;
- Remittances contribute to macroeconomic stability;
- Philippines and Mexico employ remittance maximizing strategies whereas China and India employ business oriented strategies to leverage development potential of diaspora;
- Remittances significantly support livelihoods in Zimbabwe;
- Remittance flows in Zimbabwe often occur through unofficial channels;
- Formal banking channels should be made accessible, cost-effective, timely and safe for senders and receivers.
The paper concludes by suggesting policy measures such as introducing bonds for diaspora and allowing dual citizenship to boost the contribution of the Zimbabwe diaspora to development.