Pardee-CFLP-Remittances-TF-Report

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7. Remittances and Community Resilienceto Conflict and Environmental Hazards inNorthwestern PakistanGiovanna Gioli, Talimand Khan, and Jürgen ScheffranMigration and Remittances in PakistanPakistan has the world’s seventh largest diaspora and ranked seventh for remittancesinflow in 2012 (World Bank 2012) after India, China, Philippines, Mexico,Nigeria, and Egypt. Economic projections suggest that the annual inflow ofremittances could exceed US$ 13 billion by the end of Fiscal Year 2012 (StateBank of Pakistan 2012), featuring a ten-fold increase since 2001 (Amjad et al.2012). According to the estimates of the Bureau of Emigration, about four millionPakistani migrant workers live in different countries around the globe (2.5percent of the total population). Out of this diaspora, about half of labor migrantswork in the six countries of the Gulf Cooperation Council (GCC) 1 (Governmentof Pakistan 2013), primarily in Saudi Arabia and in the United Arab Emirates(UAE). Sources of labor migration are distributed unevenly across the country:since the first oil crises in 1971, rural regions of low agricultural productivity,such as the rain-fed areas of Khyber Pakhtunkhwa (KP), are the main suppliers ofunskilled and semi-skilled migrant workers to the Gulf (Addleton 1984; Gazdar2003; Nichols 2008).KP is the area most dependent on foreign remittances within the country: foreignremittances account for 9.4 percent of the average monthly household income,compared to 5.1 percent for Punjab, 1.5 percent for Baluchistan, and 0.7 percentfor Sindh (World Bank 2011). KP is also the biggest recipient of remittances fromabroad as well as from within the country among all the four provinces of Pakistan,with nearly 31 percent of all households receiving remittances in 2007–08.The proportion of remittance-receiving households was even higher (36 percent)for the rural sector of the province (Khan and Khalid 2011).Migration is not a recent trend in KP. The people of this region have always beenextremely mobile. In pre-partition time, there was common migration to majorcities in India (e.g., to Ahmedabad), seeking employment as watchmen, farmers,workers in dockyards and on ships (Nichols 2008). To a lesser extent, migrantsfrom that location also acted as traders and moneylenders. Yet, it is only since1 Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab Emirates.Remittance Flows to Post-Conflict States: Perspectives on Human Security and Development 117
the 1970s that migration to the Gulf has become one of the most widespreadlivelihood strategies in the area, cushioning against economic shocks that resultfrom the uncertain and risk-prone agro-pastoral economy. KP is still one of themost food-insecure provinces, featuring 26 percent of the food-insecure districtsof the country—second only to Baluchistan (28 percent) (WFP 2004). Recurrentfamines were common until a few decades ago, especially in the monthsbetween Kharib and Rabi (April–May) when food stocks were depleted and itwas still too early to harvest.Migration to the Gulf is a steady and growing phenomenon that has significantlyimproved the food security and overall living standards of migrant-sendinghouseholds in KP. Migration is deeply embedded in the socioeconomic structuresof the local communities and also plays a role in social hierarchy, bringingheightened status to migrant-sending households. Fathers migrate and sonsfollow suit after reaching adulthood. The suffering and the sacrifices of migrationto the Gulf are vividly portrayed in rich Pakhtun oral heritage, conveyed throughmusic and poetry.This section explores the role of remittances among the communities of the Swatand Lower Dir districts of KP. The goals here include:• Building knowledge about the use of remittances by local communities tocope with situations of conflict and deal with the aftermath of environmentalhazards;• Collecting information on the impact of remittances on community resilienceto conflict and climate change;• Linking migration and development in the framework of post-conflict and postdisasterrelief and reconstruction.MethodologyThe present study is based on a combination of qualitative and quantitativeresearch carried out in October 2012 in conflict-affected villages with highnumbers of households involved in labor migration out of the native district, tolocations both within and outside the country. The Union Councils were identifiedthrough consultative meetings with local NGOs and civil society representativeswho had knowledge and experience in the area. We purposely sampledonly remittance-receiving households as they were the only households relevantto this research. For that reason, we did not aim for a balanced representation ofgeographical units.118 A Pardee Center Task Force Report | October 2013
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Pardee Center TASK FORCE Report oct
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This series of papers, Pardee Cente
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AcknowledgementsThis Task Force on
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ITU International Telecommunication
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networks and migrant associations i
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to developing countries than other
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But most importantly, remittances a
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often mix in the countries of desti
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According to the World Bank estimat
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Because of its focus on the multidi
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eceiving remittances provides an en
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associations for post-conflict inst
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are proposed to avoid the associate
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Terry, D. 2005. Remittances as a De
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oader approach to post-conflict rem
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networks can be seen as “homogeno
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That personalized nature of hawala
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Customary law (xeer) and other trad
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the world (Lindley 2009, 531). Much
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ize the informal equal efforts to a
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struction and development. Means sh
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opportunities should focus on exist
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2. Dodd-Frank Act and Remittances t
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leadership. Formal payments systems
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and financial institutions. 26 Reso
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closures should be both in English
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issued a new proposed regulation De
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“closed network,” in which all
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Some guidance may be found in the p
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the use of mobile devices for money
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Foreign TaxesUnder the 2012 regulat
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will be available in all cases. CFP
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Section II: Remittances in Post-Con
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Sri Lanka. The conflict also result
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Figure 2: Current Account, Trade Ba
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flows came from migrant workers in
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Page 80 and 81: Figure 1: Liberia Per Capita Income
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Page 84 and 85: Remittances to LiberiaValue of Remi
Page 86 and 87: credit because of the need to be li
Page 88 and 89: Remittance Transfers in Sierra Leon
Page 90 and 91: Knowledge RemittanceThe Liberian di
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Page 104 and 105: The Salvadoran Diaspora is very sig
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Page 108 and 109: Figure 2: Transnational Vicious Cyc
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Page 116 and 117: areas. This issue can potentially b
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Page 120 and 121: Edwards, Sebastian and I. Igal Mage
Page 122 and 123: y La Distribucion Del Ingreso, 1st
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Page 128 and 129: Remittances are perceived as playin
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Page 132 and 133: ReferencesAddleton, J. 1984. The im
Page 134 and 135: 8. Filling the Gap in Health Staffi
Page 136 and 137: The alternative is for donors to se
Page 138 and 139: cians in the U.S. in 2000 (Clemens
Page 141 and 142: 1. Remittances, Financial Inclusion
Page 143 and 144: networks, and communities. The role
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Page 153 and 154: Pardee Center Conference ReportsDev
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