Request for Tanzanian Perspectives on Remittances, Investment and Circular Migration

For years the international community has recognized the potential for migration to contribute to development and economic growth in Africa, Asia and Latin America. Remittances from diaspora communities living outside their countries of origin as well as professional skills and links to private investors are important resources that migrants could contribute to their countries of origin. In 2006 remittances to developing countries reached nearly $300 billion, virtually doubling ODA [1].

Despite the volume of resources flowing to developing countries, many people believe that they have yet to realize their full development potential. Because remittances tend to flow directly to family members and households in developing countries, and because they are generally used for consumption rather than investment or savings, many believe that their impact on communities is limited.

The International Organization for Migration (IOM) in Tanzania [2] is interested in understanding more about patterns of remittance among the Tanzania diaspora as well as the perspectives of senders and recipients regarding their motivation, interests, incentives, constraints, challenges and concerns with the remittance process. Ultimately IOM is hoping to use this information to influence policies and develop progrmas that will make the transfer of remittances faster, cheaper, and easier for both migrants and their family members in Tanzania. Some considerations include channeling remittances through microfinance organizations that will increase transparency, promote savings and investment in local communities, and increase financial services to the poor. Other options include utilizing virtual transfer mechanisms that would make remittance less expensive and deliver finances more quickly than current practices.

I hope to use the Kabissa network to initiate dialogue and generate feedback from other members interested in migration for development. I am especially interested in hearing from Tanzanians in the US and in Africa about their experiences and ideas for remittance programs.