Remittance flows, remitting behavior and utilization patterns: the case of Ethiopia

ABSTRACT

Remittances to developing countries are complex and multi-faceted, warrant closer examination and analysis. This paper examines remittance flows to Ethiopia in more depth, paying particular attention to remitting behavior by migrants from Ethiopia, and to the dynamics of how remittances are used in Ethiopia. The paper draws from an extensive survey (N = 544), interviews and focus groups conducted in Gondar, Northern Ethiopia. It provides new insights into the complex remittance relationship, including dynamics between the layers of hierarchies and family structures, the relationship between senders and recipients, and how remitting behavior changes along with the changing demographics of sending and receiving families across time and space. In particular, it shows that remittances are increasingly sent beyond the immediate family circle, often to neighbors, community or religious organizations, or to extended family members living in Ethiopia or in other countries.

RÉSUMÉ

Complexes et pluriels, les envois de fonds vers les pays en développement méritent d’être examinés et analysés de façon plus approfondie. Cet article étudie en détail les envois de fonds à destination de l’Éthiopie en accordant une attention particulière aux comportements des émigrés originaires d’Éthiopie en matière de transferts de fonds et à la dynamique d’utilisation des envois de fonds en Éthiopie. L’article provient d’une enquête de grande envergure (N=544), d’entretiens et de groupes de discussion menés à Gondar, dans le nord de l’Éthiopie. It apporte de nouvelles connaissances sur les relations complexes liées aux envois de fonds, notamment en ce qui concerne la dynamique entre les niveaux hiérarchiques et les structures familiales, la relation entre expéditeurs et destinataires, et la façon dont les comportements changent dans le temps et l’espace avec l’évolution démographique des familles qui envoient et reçoivent des fonds. En particulier, l’article montre que les envois de fonds sont de plus en plus effectués au-delà du cercle familial immédiat, souvent vers des voisins, des organisations communautaires ou religieuses, ou des membres de la famille élargie vivant en Éthiopie ou dans d’autres pays.

RESUMEN

Las remesas a los países en desarrollo son complejas y multifacéticas, y requieren un examen y análisis más detallado. Este artículo examina los flujos de remesas a Etiopía con mayor profundidad, prestando especial atención al comportamiento de remesas de los migrantes de Etiopía, y a la dinámica de cómo se utilizan las remesas en Etiopía. El documento se basa en una extensa encuesta (N = 544), entrevistas y grupos focales realizados en Gondar, en el norte de Etiopía. Ofrece nuevas perspectivas sobre la compleja relación de remesas, incluida la dinámica entre las capas de las jerarquías y las estructuras familiares, la relación entre los remitentes y los destinatarios, y cómo cambia el comportamiento de remisión junto con la demografía cambiante de enviar y recibir familias a través del tiempo y el espacio. En particular, muestra que las remesas se envían cada vez más allá del círculo familiar inmediato, a menudo a vecinos, organizaciones comunitarias o religiosas, o miembros de la familia extendida que viven en Etiopía o en otros países.

KEYWORDS:

• Migration
• remittances
• family relations
• socio-demographic change
• Ethiopia

MOTS-CLÉS:

• migration
• envois de fonds
• envois de fonds
• relations familiales
• évolution sociodémographique
• Éthiopie

PALABRAS CLAVE:

• migración
• remesas
• relaciones familiares
• cambio socio-demográfico
• Etiopía

Acknowledgments

This work is dedicated to the memory of my late supervisor Professor Graeme Hugo who was an extremely kind and generous mentor and to my sister Selamawit Adugna who has sadly passed away too soon. The author also wishes to thank the University of Adelaide for its support to conduct this research.

Disclosure statement

No potential conflict of interest was reported by the author.

Notes

1. ‘Transnational families’ are defined as familial groups with members living some or most of the time separated from each other, while nonetheless feeling a sense of collective welfare, unity and family hood across national borders (Bryceson, 2018). See also Bryceson and Vuorela, 2002; Bryceson, 2002; Glick Schiller et al., 1992).

2. A kinship by marriage.

3. Diaspora bonds are financial products issued by governments and marketed to their overseas diasporas. The idea is that the purchaser of the bond is partly interested in the capacity for a reasonable financial return and is partly motivated by patriotic or nationalist sentiment to support the government projects of their ‘home’. The promised financial return on these bonds is lower than other products and the perceived political risks are higher. Whilst such bonds are widely discussed in theory few have been issued in practice, with two of the most celebrated diaspora bond issues emerging from Ethiopia. Neither was a great success. See also Kayode-Anglade and Spio-Garbrah (2012); Akkoyunlu and Max Stern (2018).