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Social Remittances: an alternative approach to development cooperation

                                               Jana Hasalová

  University of Ostrava/Faculty of Science/Department of Human Geography and Regional
           Development/Kranichova 8, 710 00, Ostrava – Slezská Ostrava, Czech
                              Republic;jana.hasalova@osu.cz


Abstract
         The introduction of term “social remittances” does not seek to increase the terminological heterogeneity
but to provide a possibility of researching the phenomenon of remittances in its complexity. The research on
remittances can overcome the prevailing and limiting economic discourse by extending the term by
incorporating migrant-led transfers of non-material character (e. g. knowledge, know-how, expertise, methods,
values) to the wider communities extending the family ties. The research based on this alternative approach has
identified a variety of grassroots, migrant-led development projects based in the local knowledge and aiming on
the areas of absent or ineffective development cooperation networks; thus being examples of the post-
development movement. With the system of Official Development Aid (ODA) coming through both financial
and ideological crisis, the concept of social remittances might provide an alternative worth further recognition
by both scientists and official development actors.

Key words: social remittances; development cooperation; migration; transnationalism

Introduction
        The system of official development cooperation is highly complex one, with many
troubled areas which are aims of severe criticism. The current economic crisis clearly shows
the negatives of the dependency of the development coordination system on the political will
and support in the donor countries. The ambitious projects lack a clear leadership so the
multilateral agreements are usually of general character with no clearly stated means of
pursuing their outcomes or potential sanctions for failing donors. In the time of their
decreasing economic efficiency the donor states fail to provide the pledged financial sources
and aid decreases on the foreign policy agendas of the developed countries. [1] The current
development model remains state-oriented, dependent on the donors and according to many
thus used mainly for confirmation of the dominant world view presented by the developed
countries. [1] Although there is an agreement on the need of reforms in the development
model, there is not such clarity about their actual character. In this time the developmental
alternatives have a chance to get wider attention as state-independent and smaller-scale
variations to official development strategies are sought.
        With the economic crisis hitting majority of the most important ODA donors, there
grows the fear of cutting development funds by both official donors and the transnational
migrant remitters and the scientific research in this field concentrates on providing statistical
data supporting these gloomy predictions. This paper joins the critique of this economics-
based quantitative approach to research of migration-related issues which is seen as overly
simplifying. It therefore introduces an alternative – interdisciplinary qualitative-based
research method incorporating the social aspects into the research of remittances. In this way
the potential for understanding the developmental consequences of remittances is extended;
enabling wider understanding of the complex networks created in the processes of
international migration.

Theory and Methodology of Research on Social Remittances
       Research undertaken so far in the field of migration and development concentrates
predominantly on the phenomenon of remittances; more precisely on their economic value e.
g. volumes, routes, spatial distribution and use. This approach is connected to the neo-liberal
perspective of migration as a predominantly economic phenomenon interconnected with the
spread of unified global economic system and its increasing influence upon the state. This
mono-causal explanation unevenly emphasizes the economical background of global
processes – including migration. In this sense the migrants are seen purely as a labour force
motivated by desire to increase income and lower economical risks. [2] This way of rational
analysis of migrant behaviour is also applied upon their remitting activities; which are
predominantly researched in the quantitative categories of volume or share on GDP.
       The research on remittances therefore aims predominantly on the financial and
material outcomes of migrants’ economic activity transferred to country of origin. [3] In this
way remittances are recognized as potential additional source for development and as stated
above the economic crisis pressures researchers, development professionals and remitters
themselves to investigate on the most effective use of remittances in development. The matter
is further unbalanced as there are serious drawbacks in the institutional and societal structures
which prevent the effective use of provided aid. The economical assessment of remittances as
developmental tool therefore puts a disproportional amount of responsibility on
proportionally small group of migrants without providing them with adequate recognition and
assistance. Blaming the migrants themselves for the lack of development can be thus analysed
as tactical approach of drawing the attention from the actual drawbacks in political,
economical and aid structures. [3, 4] The criticism of remittances also aims on lack of control,
creation of dependency, unequal distribution and consumption use. This attitude omits the
fact that remittances are just one part of a complex socio-economic system; their income can
therefore release other resources which would be otherwise linked to primary consumption.
The analysis of their influences should therefore look further than just on the direct outcomes
as there are often secondary ones which are still socially desirable. [3, 4, 5]
       To reflect these problematic areas there emerges new concept of remittances. Its aim is
to include the social aspects of remitting activities and the transnational reality of migrants’
lives and activities. The main difference lies in going beyond the simplistic optics viewing
migrants as market driven economic actors. The actual reality of migration is a complex and
dynamic process driven by mix of social, political and economic motivations. Therefore
explaining migration in the context of free market is at least biased as there are present both
individual and collective motivations, influences and outcomes. [3] Concentration on
financial remittances also omits all other forms in which migrants may contribute to
development of their home countries. The perspective of social remitting enables to pay
attention to activities going further than to material and financial transfers. Therefore the
concept of social remittances also gives space to alternatives to the prevailing development
discourse by research of post-developmental strategies of development which concentrate on
grassroots, community-based projects using the local knowledge and traditions. [6]
       The inclusive definition of social remittances was created, recognizing them as
material and nonmaterial transfers such as skills, know-how, knowledge, techniques, methods
and values used for and by wider community exceeding the family relationships; submitted by
individuals or groups of international migrants or refugees and used in various forms of
collective projects with the motivation of giving back to the community and improving its
welfare. [7, 8] This unofficial definition became a base of research on remitting activities of
Irish immigrants undertaken by the author in years 2009 – 2010. The research aimed on
identification of concrete forms of social remitting projects, their motivation and available
networks of cooperation. As remittances are considered to be one of the main alternatives to
the failing structures of development cooperation, the main focus was paid to the post-
development characteristics of social remitting projects. It was proved that migrant organizers
create mainly community-based, self-sustainable and small scale projects which originate
from the needs and skills of the target community. The great advantage of this approach is the
possibility to create alternative power structures and channels and enable emancipation of
local communities which are often marginalized in the global system of development
cooperation.
       The new concept of research on remittances is therefore innovative thanks to the
extension of the understanding of the processes beyond the financial, family, kin and ethnic
bonds of migrants. The research has shown that remittances have many forms and therefore
there is needed of further research on the social aspects of this phenomenon; including the
attitudes to the official structures of development cooperation. Social remittances therefore
extend the theoretical understanding of “transnationalism from below” – the specific local
grassroots reactions to the processes of globalization enabling the use of personal potential to
individuals and communities in otherwise marginalised regions and positions. [9]

Outcomes and Discussion
       The pilot research helped to identify the migrants as active, though officially
unrecognized actors in the field of development whose activities aim mainly on the grassroots
projects. These projects form an important alternative to the areas of non-existent or
ineffective official development cooperation networks. The migrants themselves localize their
projects according to the needs and requirements of the local communities which are
insufficiently involved in the official development networks. As the amount of these localities
might increase with the withdrawal of main donors from the development projects, the
activities of migrants grow on importance as they have tendency to grow nevertheless the
economic crisis. This characteristic is given by the non-financial character of the projects
which are oriented on giving back to the community. The motivation of the social remitters
originates from religious beliefs, family upbringing or philosophy, which are the
characteristics that are not influenced by the economic downturn in the developed world.
Although many of the social remitters struggle with financing in the current environment,
they seek to sustain their activities by other means. [10]
       The declared disregard of social remitting activities by majority of official
development bodies leads to a set of further research questions. The marginalization of
migrants in the social, political and economic structures of the host countries seems to be
connected to the prevailing negative public image of migrants. In the area of development
migrants become representatives of the passive and drawback imagery of developed countries
and their inhabitants; that makes their incorporation into the official structures seemingly
impossible. The low levels of cooperation among the migrant and official development actors
can be according to A. Escobar interpreted as the outcome of the differences in both
theoretical and practical understanding of the concept of development given by the existence
of different development discourses. The transnational position of the migrant social remitters
creates their specific position in between the local and official development discourses which
exist in hybrid coexistence. [11] The research has thus identified interesting inconsonance
between the form and content of the development projects. Although the social remitting has
the above described post-developmental form of grassroots activities, the actual content
defined by the receiving society is in accord with the official development discourse
concentrating mainly on the infrastructure, education and healthcare.

Conclusions
       This paper aims on the insufficient research of migration and development issues
originating from the economics-based discourses of these two fields of research. Both
migration and development are influenced by complex system of social, political, economic
and cultural factors which need to be reflected in the theoretical research on the related
phenomena. Interdisciplinary, holistic and complex approaches that reflex the specific time-
space context are getting wider support, however they are still handicapped by their relative
novelty, unstable terminology and missing specific methodology. However the described
research has proven the necessity of new approaches for grasping the complexity of
transnational networks and the importance of personal agency of many individuals. Their
personal skills, knowledge and intellect are used for development of otherwise neglected
communities abandoned by the main networks of distribution of power and resources.
       The outcomes of the research social remittances proved that further research on the
issue can help to replace the economic view on migrants by the one recognizing their personal
agency, intellectual, manual and organizational skills, experience and expertise. Further
research may therefore achieve the full recognition of migrants as agents of development and
gain access to their abilities and experiences to various development bodies. Such approaches
should be supported by the need of grasping the complexity of migrant agency which in many
ways possesses the currently proposed characteristics of post-development tactics of self-
empowerment led by the developing communities themselves. Therefore social remittances
provide a chance of creating an alternative to development structures struck by inefficiency,
administrative costs and bureaucracy.
       Overall it is clear that the processes linking migration and development are complex
and highly influenced by all the included actors; this fact should be reflected by any further
research. In this way it is possible to reflect that although the transnational networks seem to
be influenced by various policies and structures, they still can be created and changed by the
individuals.
References
[1]    Thérien J., Lloyd C. (2000) Third World Quarterly 21(1), p. 21
[2]    Massey D. (1993) Population and Development Review 19(3), p. 431
[3]    Skeldon R. (2008) Population and Development Review 34(1), p. 1
[4]    Migration Policy Institute [2010-03-25]
       <http://www.migrationinformation.net/Feature/print.cfm?ID=580>
[5]    Ozden C., Schiff M. (2006) International Migration, Remittances and the Brain Drain.
       World Bank, Washington, p. 201
[6]    Johnston R. (2000) The Dictionary of Human Geography. Blackwell Publishing,
       Oxford, p. 615
[7]    The Hague Process, UNESCO [2010-25-4]
       <http://www.thehagueprocess.org/upload/pdf/PDFHandbookWEBSITE.pdf>
[8]    Immigrant Council of Ireland [2010-26-5] <http://www.immigrantcouncil.ie>
[9]    Nyberg-Sorensen N., Van Hear N., Engberg-Pedersen P. (2002) International
       Migration 40(2), p. 3
[10]   Hasalová J. (2010) Beyond Globalization: Exploring the Limits of Globalization in the
       Regional Context, Ostrava, ČR, p. 147
[11]   Escobar A. (1995) Encountering Development: the making and unmaking of the third
       world. Princeton University Press, Princeton, p. 52

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Social Remittances: an alternative approach to development cooperation

  • 1. Social Remittances: an alternative approach to development cooperation Jana Hasalová University of Ostrava/Faculty of Science/Department of Human Geography and Regional Development/Kranichova 8, 710 00, Ostrava – Slezská Ostrava, Czech Republic;jana.hasalova@osu.cz Abstract The introduction of term “social remittances” does not seek to increase the terminological heterogeneity but to provide a possibility of researching the phenomenon of remittances in its complexity. The research on remittances can overcome the prevailing and limiting economic discourse by extending the term by incorporating migrant-led transfers of non-material character (e. g. knowledge, know-how, expertise, methods, values) to the wider communities extending the family ties. The research based on this alternative approach has identified a variety of grassroots, migrant-led development projects based in the local knowledge and aiming on the areas of absent or ineffective development cooperation networks; thus being examples of the post- development movement. With the system of Official Development Aid (ODA) coming through both financial and ideological crisis, the concept of social remittances might provide an alternative worth further recognition by both scientists and official development actors. Key words: social remittances; development cooperation; migration; transnationalism Introduction The system of official development cooperation is highly complex one, with many troubled areas which are aims of severe criticism. The current economic crisis clearly shows the negatives of the dependency of the development coordination system on the political will and support in the donor countries. The ambitious projects lack a clear leadership so the multilateral agreements are usually of general character with no clearly stated means of pursuing their outcomes or potential sanctions for failing donors. In the time of their decreasing economic efficiency the donor states fail to provide the pledged financial sources and aid decreases on the foreign policy agendas of the developed countries. [1] The current development model remains state-oriented, dependent on the donors and according to many thus used mainly for confirmation of the dominant world view presented by the developed countries. [1] Although there is an agreement on the need of reforms in the development model, there is not such clarity about their actual character. In this time the developmental alternatives have a chance to get wider attention as state-independent and smaller-scale variations to official development strategies are sought. With the economic crisis hitting majority of the most important ODA donors, there grows the fear of cutting development funds by both official donors and the transnational migrant remitters and the scientific research in this field concentrates on providing statistical data supporting these gloomy predictions. This paper joins the critique of this economics-
  • 2. based quantitative approach to research of migration-related issues which is seen as overly simplifying. It therefore introduces an alternative – interdisciplinary qualitative-based research method incorporating the social aspects into the research of remittances. In this way the potential for understanding the developmental consequences of remittances is extended; enabling wider understanding of the complex networks created in the processes of international migration. Theory and Methodology of Research on Social Remittances Research undertaken so far in the field of migration and development concentrates predominantly on the phenomenon of remittances; more precisely on their economic value e. g. volumes, routes, spatial distribution and use. This approach is connected to the neo-liberal perspective of migration as a predominantly economic phenomenon interconnected with the spread of unified global economic system and its increasing influence upon the state. This mono-causal explanation unevenly emphasizes the economical background of global processes – including migration. In this sense the migrants are seen purely as a labour force motivated by desire to increase income and lower economical risks. [2] This way of rational analysis of migrant behaviour is also applied upon their remitting activities; which are predominantly researched in the quantitative categories of volume or share on GDP. The research on remittances therefore aims predominantly on the financial and material outcomes of migrants’ economic activity transferred to country of origin. [3] In this way remittances are recognized as potential additional source for development and as stated above the economic crisis pressures researchers, development professionals and remitters themselves to investigate on the most effective use of remittances in development. The matter is further unbalanced as there are serious drawbacks in the institutional and societal structures which prevent the effective use of provided aid. The economical assessment of remittances as developmental tool therefore puts a disproportional amount of responsibility on proportionally small group of migrants without providing them with adequate recognition and assistance. Blaming the migrants themselves for the lack of development can be thus analysed as tactical approach of drawing the attention from the actual drawbacks in political, economical and aid structures. [3, 4] The criticism of remittances also aims on lack of control, creation of dependency, unequal distribution and consumption use. This attitude omits the fact that remittances are just one part of a complex socio-economic system; their income can therefore release other resources which would be otherwise linked to primary consumption. The analysis of their influences should therefore look further than just on the direct outcomes
  • 3. as there are often secondary ones which are still socially desirable. [3, 4, 5] To reflect these problematic areas there emerges new concept of remittances. Its aim is to include the social aspects of remitting activities and the transnational reality of migrants’ lives and activities. The main difference lies in going beyond the simplistic optics viewing migrants as market driven economic actors. The actual reality of migration is a complex and dynamic process driven by mix of social, political and economic motivations. Therefore explaining migration in the context of free market is at least biased as there are present both individual and collective motivations, influences and outcomes. [3] Concentration on financial remittances also omits all other forms in which migrants may contribute to development of their home countries. The perspective of social remitting enables to pay attention to activities going further than to material and financial transfers. Therefore the concept of social remittances also gives space to alternatives to the prevailing development discourse by research of post-developmental strategies of development which concentrate on grassroots, community-based projects using the local knowledge and traditions. [6] The inclusive definition of social remittances was created, recognizing them as material and nonmaterial transfers such as skills, know-how, knowledge, techniques, methods and values used for and by wider community exceeding the family relationships; submitted by individuals or groups of international migrants or refugees and used in various forms of collective projects with the motivation of giving back to the community and improving its welfare. [7, 8] This unofficial definition became a base of research on remitting activities of Irish immigrants undertaken by the author in years 2009 – 2010. The research aimed on identification of concrete forms of social remitting projects, their motivation and available networks of cooperation. As remittances are considered to be one of the main alternatives to the failing structures of development cooperation, the main focus was paid to the post- development characteristics of social remitting projects. It was proved that migrant organizers create mainly community-based, self-sustainable and small scale projects which originate from the needs and skills of the target community. The great advantage of this approach is the possibility to create alternative power structures and channels and enable emancipation of local communities which are often marginalized in the global system of development cooperation. The new concept of research on remittances is therefore innovative thanks to the extension of the understanding of the processes beyond the financial, family, kin and ethnic bonds of migrants. The research has shown that remittances have many forms and therefore
  • 4. there is needed of further research on the social aspects of this phenomenon; including the attitudes to the official structures of development cooperation. Social remittances therefore extend the theoretical understanding of “transnationalism from below” – the specific local grassroots reactions to the processes of globalization enabling the use of personal potential to individuals and communities in otherwise marginalised regions and positions. [9] Outcomes and Discussion The pilot research helped to identify the migrants as active, though officially unrecognized actors in the field of development whose activities aim mainly on the grassroots projects. These projects form an important alternative to the areas of non-existent or ineffective official development cooperation networks. The migrants themselves localize their projects according to the needs and requirements of the local communities which are insufficiently involved in the official development networks. As the amount of these localities might increase with the withdrawal of main donors from the development projects, the activities of migrants grow on importance as they have tendency to grow nevertheless the economic crisis. This characteristic is given by the non-financial character of the projects which are oriented on giving back to the community. The motivation of the social remitters originates from religious beliefs, family upbringing or philosophy, which are the characteristics that are not influenced by the economic downturn in the developed world. Although many of the social remitters struggle with financing in the current environment, they seek to sustain their activities by other means. [10] The declared disregard of social remitting activities by majority of official development bodies leads to a set of further research questions. The marginalization of migrants in the social, political and economic structures of the host countries seems to be connected to the prevailing negative public image of migrants. In the area of development migrants become representatives of the passive and drawback imagery of developed countries and their inhabitants; that makes their incorporation into the official structures seemingly impossible. The low levels of cooperation among the migrant and official development actors can be according to A. Escobar interpreted as the outcome of the differences in both theoretical and practical understanding of the concept of development given by the existence of different development discourses. The transnational position of the migrant social remitters creates their specific position in between the local and official development discourses which exist in hybrid coexistence. [11] The research has thus identified interesting inconsonance between the form and content of the development projects. Although the social remitting has
  • 5. the above described post-developmental form of grassroots activities, the actual content defined by the receiving society is in accord with the official development discourse concentrating mainly on the infrastructure, education and healthcare. Conclusions This paper aims on the insufficient research of migration and development issues originating from the economics-based discourses of these two fields of research. Both migration and development are influenced by complex system of social, political, economic and cultural factors which need to be reflected in the theoretical research on the related phenomena. Interdisciplinary, holistic and complex approaches that reflex the specific time- space context are getting wider support, however they are still handicapped by their relative novelty, unstable terminology and missing specific methodology. However the described research has proven the necessity of new approaches for grasping the complexity of transnational networks and the importance of personal agency of many individuals. Their personal skills, knowledge and intellect are used for development of otherwise neglected communities abandoned by the main networks of distribution of power and resources. The outcomes of the research social remittances proved that further research on the issue can help to replace the economic view on migrants by the one recognizing their personal agency, intellectual, manual and organizational skills, experience and expertise. Further research may therefore achieve the full recognition of migrants as agents of development and gain access to their abilities and experiences to various development bodies. Such approaches should be supported by the need of grasping the complexity of migrant agency which in many ways possesses the currently proposed characteristics of post-development tactics of self- empowerment led by the developing communities themselves. Therefore social remittances provide a chance of creating an alternative to development structures struck by inefficiency, administrative costs and bureaucracy. Overall it is clear that the processes linking migration and development are complex and highly influenced by all the included actors; this fact should be reflected by any further research. In this way it is possible to reflect that although the transnational networks seem to be influenced by various policies and structures, they still can be created and changed by the individuals. References [1] Thérien J., Lloyd C. (2000) Third World Quarterly 21(1), p. 21 [2] Massey D. (1993) Population and Development Review 19(3), p. 431
  • 6. [3] Skeldon R. (2008) Population and Development Review 34(1), p. 1 [4] Migration Policy Institute [2010-03-25] <http://www.migrationinformation.net/Feature/print.cfm?ID=580> [5] Ozden C., Schiff M. (2006) International Migration, Remittances and the Brain Drain. World Bank, Washington, p. 201 [6] Johnston R. (2000) The Dictionary of Human Geography. Blackwell Publishing, Oxford, p. 615 [7] The Hague Process, UNESCO [2010-25-4] <http://www.thehagueprocess.org/upload/pdf/PDFHandbookWEBSITE.pdf> [8] Immigrant Council of Ireland [2010-26-5] <http://www.immigrantcouncil.ie> [9] Nyberg-Sorensen N., Van Hear N., Engberg-Pedersen P. (2002) International Migration 40(2), p. 3 [10] Hasalová J. (2010) Beyond Globalization: Exploring the Limits of Globalization in the Regional Context, Ostrava, ČR, p. 147 [11] Escobar A. (1995) Encountering Development: the making and unmaking of the third world. Princeton University Press, Princeton, p. 52