5 - Moderating Poverty: The Role of Remittances from Migration in Botswana
Corresponding Author(s) : Eugene K. Campbell
Africa Development,
Vol. 33 No. 2 (2008): Africa Development
Abstract
This study examines internal labour migration of Botswana citizens and their remittance behaviour. Though international remittance is among topical global issues, it does not appear to contribute much currently towards national development in Botswana. About twenty-five years ago remittances from internal migration had no impact on poverty. This study indicates that the situation has not changed. The new economic theory of labour migration is addressed within a theoretical framework. From primary data, the level of poverty is measured and factors influencing remittances are examined. Following this is an examination of the impact of remittances on poverty. The results indicate that migrants maintain links with their home-based households through remittances in cash and goods. This is generally done in order to reduce poverty, especially in rural areas. There is considerable variation in the extent to which remittances are appreciated as a reliable means of subsistence in the household. Regression results reveal that economic and social factors are related with remittances from migrants. However, the remittances do not have a significant moderating effect on poverty in Botswana. While female-headed households dominated among those that were transitorily poor, there is no evidence that this is the case among those that lived in extreme poverty. Policy implications are addressed.
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- Aaberge, R. and Mogstad M., 2007, On the Definition and Measurement of Chronic Poverty, Discussion Paper No. 2659, Institute for the Study of Labor: Bonn.
- Ahmed, I.I., 2000, ‘Remittances and their economic impact in post-war Somaliland’, Disasters 24: 380-–389.
- Akinsola, H.A. and Popovich, J.M., 2002, ‘The quality of life of families of female- headed households in Botswana: A secondary analysis of case studies’, Health Care for Women International 23: 761–772.
- Alber, E., 2003, Denying biological parenthood: fosterage in northern Benin, Ethnos 68: 487–506.
- Anonymous, 2005, ‘Standards and Poor’s Releases Botswana’s 2005 Sovereign Credit Rating. A Bank of Botswana Press Release’. www.bankofbotswana.article.php
- Ben-Porath, Y.,1973, ‘Economic analysis of fertility in Israel: point and counterpoint’, Journal of Political Economy 18: S202–233.
- BIDPA, 1997, Study of Poverty and Poverty Alleviation in Botswana, Vol. 1, Government Printer: Gaborone.
- Botswana, 1982, Migration in Botswana: Patterns Causes and Consequences, A National Migration Study, Government Printer: Gaborone.
- Botswana, 1991, National Development Plan 7, 1991–1997, Government Printer: Gaborone.
- Botswana, 1994, The Revised National Policy on Education, Government Printer: Gaborone.
- Botswana, 2003, Labour Statistics 2001, Government Printer: Gaborone. Botswana, 2007, 2002/03 Household Income and Expenditure Survey: Botswana, Government Printer: Gaborone.
- Buvini, M. and Gupta, G.R., 1997, ‘Female-headed households and female- maintained families: are they worth targeting to reduce poverty in developing countries’? Economic Development and Cultural Change 45: 259–280.
- Caldwell, J.C., 1978, A theory of fertility: from high plateau to destabilization, Population and Development Review 4: 553–577.
- Caldwell, J.C., 1982, Theory of Fertility Decline, Academic Press: London.
- Chant, S., 2007, ‘Poverty begins at home? Questioning some (mis)conceptions about children, poverty and privation in female-headed households’. UNICEF Report on State of the World’s Children 2007, London School of Economics.
- Crush, J. (ed.), 2006, States of Vulnerability: The Brain Drain of Future Talent to South Africa, Migration Policy Series No. 42, Southern African Migration Project: Cape Town.
- Daily News, 2000, ‘12,000 illegal immigrants deported’, Daily News, 3 February, Gaborone.
- Daily News, 2001, ‘Illegal immigrants prompt P49 million detention centre’, Daily News, 31 October, Gaborone.
- Dow, T.E, Archer, L, Khasiani, S. and Kekovole, J., 1994, ‘Wealth flow and fertility decline in rural Kenya’, 1981–92, Population and Development Review 20: 343–364.
- Eloundou-Enyegue, P.M. and Calves, A.E., 2006, ‘Till marriage do us part: education and remittances from married women in Africa’, Comparative Education Review 50: 1–20.
- Fuwa, N., 2000, ‘The poverty and heterogeneity among female-headed households revisited: the case of Panama’, World Development 28: 1515–1542.
- Gaolathe, B., 2007, Budget Speech 2007, Government Printer, Gaborone.
- Gardner, K. and Grillo, R., 2002, ‘Transnational households and rituals: an overview’, Global Network 2: 179–190.
- Gubert, F., 2002, ‘Do migrants insure those who stay behind? Evidence from the Kayse area (western Mali)’, Oxford Development Studies 30(3): 267–287.
- Gwebu, T.D., 2006, ‘Towards a theoretical exploration of the differential urbanisation model in sub-Saharan Africa: the Botswana case’, Tijdschrift voor Economische en Sociale Geografie 97: 418–433.
- Harris, J.R. and Todaro, M.P., 1970, ‘Migration, unemployment and development: two-sector analysis’, American Economic Review 60: 126–142.
- Hosmer, D.W. and Lemeshow, S., 2000, Applied Logistic Regression, New York: Wiley.
- Izzard, W., 1985, ‘Migrants and mothers: case studies from Botswana’, Journal of Southern African Studies 11: 258–280.
- Lucas, R.E., 1982, ‘Outmigration, remittances and investment in rural areas’, in Migration in Botswana: Patterns, Causes and Consequences, National Migration Study, Vol. 3, Government Printers: Gaborone, pp. 627–653.
- Lucas, R.E. and Stark, O., 1985, ‘Motivations to remit: evidence from Botswana’, Journal of Political Economy 93: 901–918.
- Maslow, A., 1943, ‘A theory of human motivation’, Psychology Review 50: 370– 396.
- Massey, D.S, Arango, J., Hugo, G., Kouaouci, A., Pellegrino, A. and Taylor, J.E., 1993, ‘Theories of international migration: a review and appraisal’, Population and Development Review 19: 431–466.
- Matiage, M., 2002, ‘Poverty alleviation through civil society’, DPMN Bulletin 9.
- Mattes, R, Bratton, M. and Davids, Y.B., 2003, ‘Poverty, survival and democracy in southern Africa’, Afrobarometer 23, Idasa: Cape Town.
- Medeiros, M. and Costa, J.S., 2006, Poverty among Women in Latin America: Feminization or over-representation? Working Paper No. 0020. International Poverty Center: Brasilia.
- Mooney, M., 2003, ‘Migrants’ social ties in the U.S. and investment in Mexico’, Social Forces 81: 1147–1170.
- Nwoye, A., 2000, ‘A framework for intervention in marital conflicts over family finances: a view from Africa’, The American Journal of Family Therapy 28: 75–87.
- Portes, A., 1995, ‘Economic sociology and the sociology of immigration: a conceptual overview’, in The Economic Sociology of Immigration: Essays on Networks, and Entrepreneurship, ed. A. Portes, Russell Sage Foundation: New York, pp. 1–41.
- Pregibon, D., 1981, ‘Logistic regression diagnostics’, The Annals of Statistics 9: 705–724.
- Quisumbing, A.R., Haddad, L. and Pena, C., 2001, Are Women Overrepresented among the Poor? An analysis of poverty in ten developing countries, Discussion Paper No. 115, ‘Food Consumption and Nutrition Division’, International Food Policy Research Institute: Washington, D.C.
- Rempel, H. and Lobdell, R.A.,1978, ‘The role of urban-to-rural remittances in rural development’, Journal of Development Studies 14: 324–341.
- SAMP, 2005, ‘Issues in African Migration: South African experiences and attitudes towards migration’, Paper presented at the Global Coalition for Africa Policy Forum, Addis Ababa.
- Sanni, L., 2006, ‘Comparative study of female-headed households in the city of Ibadan’, JENDA: A Journal of Culture and African Women Studies 8: 1–14.
- Schrieder, G. and Knerr, B., 2000, ‘Labour migration as a social security mechanism for smallholder households in Sub-Saharan Africa: the case of Cameroon’, Oxford Development Studies 28: 223–237.
- Sen, A., 1999, Development as Freedom, Anchor Books: New York.
- Shain, Y., 2000, ‘The Mexican-American diaspora’s impact on Mexico’, Political Science Quarterly 114: 661–691.
- Stark, O., 1980, ‘On the role of urban-to-rural remittances in rural development’, Journal of Development Studies 16: 369–374.
- Stark, O. and Bloom, D.E., 1985, ‘The new economics of labor migration’, American Economic Review 75: 173–178.
- Stark, O. and Levhari, D., 1982, ‘On migration and risk in LDC’, Economic Development and Cultural Change 31: 191–196.
- Taylor, J.E., 1999, ‘The new economics of labour migration and the role of remittances in the migration process’, International Migration 37: 63–86.
- Todaro, M.P., 1969, ‘A model of migration and urban unemployment in less developed countries’, American Economic Review 59: 138–148.
References
Aaberge, R. and Mogstad M., 2007, On the Definition and Measurement of Chronic Poverty, Discussion Paper No. 2659, Institute for the Study of Labor: Bonn.
Ahmed, I.I., 2000, ‘Remittances and their economic impact in post-war Somaliland’, Disasters 24: 380-–389.
Akinsola, H.A. and Popovich, J.M., 2002, ‘The quality of life of families of female- headed households in Botswana: A secondary analysis of case studies’, Health Care for Women International 23: 761–772.
Alber, E., 2003, Denying biological parenthood: fosterage in northern Benin, Ethnos 68: 487–506.
Anonymous, 2005, ‘Standards and Poor’s Releases Botswana’s 2005 Sovereign Credit Rating. A Bank of Botswana Press Release’. www.bankofbotswana.article.php
Ben-Porath, Y.,1973, ‘Economic analysis of fertility in Israel: point and counterpoint’, Journal of Political Economy 18: S202–233.
BIDPA, 1997, Study of Poverty and Poverty Alleviation in Botswana, Vol. 1, Government Printer: Gaborone.
Botswana, 1982, Migration in Botswana: Patterns Causes and Consequences, A National Migration Study, Government Printer: Gaborone.
Botswana, 1991, National Development Plan 7, 1991–1997, Government Printer: Gaborone.
Botswana, 1994, The Revised National Policy on Education, Government Printer: Gaborone.
Botswana, 2003, Labour Statistics 2001, Government Printer: Gaborone. Botswana, 2007, 2002/03 Household Income and Expenditure Survey: Botswana, Government Printer: Gaborone.
Buvini, M. and Gupta, G.R., 1997, ‘Female-headed households and female- maintained families: are they worth targeting to reduce poverty in developing countries’? Economic Development and Cultural Change 45: 259–280.
Caldwell, J.C., 1978, A theory of fertility: from high plateau to destabilization, Population and Development Review 4: 553–577.
Caldwell, J.C., 1982, Theory of Fertility Decline, Academic Press: London.
Chant, S., 2007, ‘Poverty begins at home? Questioning some (mis)conceptions about children, poverty and privation in female-headed households’. UNICEF Report on State of the World’s Children 2007, London School of Economics.
Crush, J. (ed.), 2006, States of Vulnerability: The Brain Drain of Future Talent to South Africa, Migration Policy Series No. 42, Southern African Migration Project: Cape Town.
Daily News, 2000, ‘12,000 illegal immigrants deported’, Daily News, 3 February, Gaborone.
Daily News, 2001, ‘Illegal immigrants prompt P49 million detention centre’, Daily News, 31 October, Gaborone.
Dow, T.E, Archer, L, Khasiani, S. and Kekovole, J., 1994, ‘Wealth flow and fertility decline in rural Kenya’, 1981–92, Population and Development Review 20: 343–364.
Eloundou-Enyegue, P.M. and Calves, A.E., 2006, ‘Till marriage do us part: education and remittances from married women in Africa’, Comparative Education Review 50: 1–20.
Fuwa, N., 2000, ‘The poverty and heterogeneity among female-headed households revisited: the case of Panama’, World Development 28: 1515–1542.
Gaolathe, B., 2007, Budget Speech 2007, Government Printer, Gaborone.
Gardner, K. and Grillo, R., 2002, ‘Transnational households and rituals: an overview’, Global Network 2: 179–190.
Gubert, F., 2002, ‘Do migrants insure those who stay behind? Evidence from the Kayse area (western Mali)’, Oxford Development Studies 30(3): 267–287.
Gwebu, T.D., 2006, ‘Towards a theoretical exploration of the differential urbanisation model in sub-Saharan Africa: the Botswana case’, Tijdschrift voor Economische en Sociale Geografie 97: 418–433.
Harris, J.R. and Todaro, M.P., 1970, ‘Migration, unemployment and development: two-sector analysis’, American Economic Review 60: 126–142.
Hosmer, D.W. and Lemeshow, S., 2000, Applied Logistic Regression, New York: Wiley.
Izzard, W., 1985, ‘Migrants and mothers: case studies from Botswana’, Journal of Southern African Studies 11: 258–280.
Lucas, R.E., 1982, ‘Outmigration, remittances and investment in rural areas’, in Migration in Botswana: Patterns, Causes and Consequences, National Migration Study, Vol. 3, Government Printers: Gaborone, pp. 627–653.
Lucas, R.E. and Stark, O., 1985, ‘Motivations to remit: evidence from Botswana’, Journal of Political Economy 93: 901–918.
Maslow, A., 1943, ‘A theory of human motivation’, Psychology Review 50: 370– 396.
Massey, D.S, Arango, J., Hugo, G., Kouaouci, A., Pellegrino, A. and Taylor, J.E., 1993, ‘Theories of international migration: a review and appraisal’, Population and Development Review 19: 431–466.
Matiage, M., 2002, ‘Poverty alleviation through civil society’, DPMN Bulletin 9.
Mattes, R, Bratton, M. and Davids, Y.B., 2003, ‘Poverty, survival and democracy in southern Africa’, Afrobarometer 23, Idasa: Cape Town.
Medeiros, M. and Costa, J.S., 2006, Poverty among Women in Latin America: Feminization or over-representation? Working Paper No. 0020. International Poverty Center: Brasilia.
Mooney, M., 2003, ‘Migrants’ social ties in the U.S. and investment in Mexico’, Social Forces 81: 1147–1170.
Nwoye, A., 2000, ‘A framework for intervention in marital conflicts over family finances: a view from Africa’, The American Journal of Family Therapy 28: 75–87.
Portes, A., 1995, ‘Economic sociology and the sociology of immigration: a conceptual overview’, in The Economic Sociology of Immigration: Essays on Networks, and Entrepreneurship, ed. A. Portes, Russell Sage Foundation: New York, pp. 1–41.
Pregibon, D., 1981, ‘Logistic regression diagnostics’, The Annals of Statistics 9: 705–724.
Quisumbing, A.R., Haddad, L. and Pena, C., 2001, Are Women Overrepresented among the Poor? An analysis of poverty in ten developing countries, Discussion Paper No. 115, ‘Food Consumption and Nutrition Division’, International Food Policy Research Institute: Washington, D.C.
Rempel, H. and Lobdell, R.A.,1978, ‘The role of urban-to-rural remittances in rural development’, Journal of Development Studies 14: 324–341.
SAMP, 2005, ‘Issues in African Migration: South African experiences and attitudes towards migration’, Paper presented at the Global Coalition for Africa Policy Forum, Addis Ababa.
Sanni, L., 2006, ‘Comparative study of female-headed households in the city of Ibadan’, JENDA: A Journal of Culture and African Women Studies 8: 1–14.
Schrieder, G. and Knerr, B., 2000, ‘Labour migration as a social security mechanism for smallholder households in Sub-Saharan Africa: the case of Cameroon’, Oxford Development Studies 28: 223–237.
Sen, A., 1999, Development as Freedom, Anchor Books: New York.
Shain, Y., 2000, ‘The Mexican-American diaspora’s impact on Mexico’, Political Science Quarterly 114: 661–691.
Stark, O., 1980, ‘On the role of urban-to-rural remittances in rural development’, Journal of Development Studies 16: 369–374.
Stark, O. and Bloom, D.E., 1985, ‘The new economics of labor migration’, American Economic Review 75: 173–178.
Stark, O. and Levhari, D., 1982, ‘On migration and risk in LDC’, Economic Development and Cultural Change 31: 191–196.
Taylor, J.E., 1999, ‘The new economics of labour migration and the role of remittances in the migration process’, International Migration 37: 63–86.
Todaro, M.P., 1969, ‘A model of migration and urban unemployment in less developed countries’, American Economic Review 59: 138–148.