Remittances and development: the impact of migration to South Africa on rural livelihoods in southern Zimbabwe

The development potential of remittances has not received much policy attention in the migrants' countries of origin. The Homelink facility established by the Reserve Bank of Zimbabwe in May 2004 excludes undocumented migrants, who are unlikely to use formal channels to send their remittances back home, and studies on international migration from Zimbabwe to South Africa have neglected the role of remittances, especially from undocumented migrants. However, some countries have realised this potential and developed strategies to encourage the flow and investment of remittances, which can contribute significantly to poverty reduction and development. Without such regulations and policies, which require the collaboration of government, migrant groups, the local community, non-governmental organisations and other international organisations, migrant remittances will continue to be used mainly for consumption, with a very small proportion being invested in sustainable investment.     

Non-Europe: The magnitude and causes of market fragmentation in the EU

Non-Europe: The Magnitude and Causes of Market Fragmentation in the EU. — In 1985 the European Commission diagnosed its member states as suffering from excessive market fragmentation, later referred to as “Non-Europe.” The authors examine the empirical basis for the Commission’s diagnosis using a trade model derived from monopolistic competition. They then investigate the links between the initial size and subsequent evolution of border effects within the EU. The findings support the view that European consumers act as if imports from other members were subject to high nontariff barriers. However, there appears to be almost no relationship between market fragmentation and the barriers that were identified and removed by Europe’s Single Market Programme.     

Migration from rural areas of poor countries: The impact on rural productivity and income distribution

Evidence is presented elsewhere²⁶ that intra-rural inequality is a major cause of rural-urban migration: that better-off villagers tend to be ‘pulled’, and worse-off villagers ‘pushed’, from the same subset of relatively ‘unequal’ villages. This paper argues that townward emigration, and its after-effects (remittances, return migration), in turn increases interpersonal and inter-household inequality within and between villages. As for rural labour productivity, the neoclassical expectation (that townward migration increases it) rests on special definitions and doubtful assumptions. Fortunately, in most of the poorer developing countries, rural-urban migration is much smaller, less permanent and more likely to set up countervailing economic-demographic pressures restoring the rural population share, than received opinion about ‘the urban crisis’ suggests. Migration does not equilibriate between urban and rural sectors, largely because of externalities and compositional factors; but it does smoothe itself, largely because individuals behave rationally and learn quickly. As so often, the lesson for development studies is not that ‘markets fail’. It is that, under conditions of both poverty and structural inequality, they function — but with generally unacceptable, misery-preserving consequences.     

The causes and impact of the african debt crisis

This article examines the African debt crisis. It focuses on factors leading to the accumulation of the debts and their impact on the debtor nations. The significance of the study lies in the fact that the African debt burden presents a gruesome picture of hopelessness. This is reflected by the continent’s massive debt of $230 billion, equivalent to almost three times the continent’s annual export earnings. This is expected to jump to $550 billion by the year 2000. Africa’s crushing debt burden has become one of the most important factors constraining recovery and development. As the United Nations Children’s Fund estimates, one thousand people die each day in Africa because of the debt crisis. The analysis shows that due to the multifaceted nature of the causes of the debt crisis, both creditors and debtors should agree on the options for dealing with the crisis. It further shows that there is the urgency for Africa to tackle its numerous sociopolitico-economic problems. Africa can make real economic progress only when it begins to get on top of its debt crisis.     

The impact of circular migration on a village economy

The author examines the economy of a rural village in Indonesia in which a high proportion of households rely on remittances from urban informal sector earnings. Household income and per capita income are analyzed according to whether or not households have at least one temporary migrant, and by the sex and age of the household head. Findings indicate that "remittances from short-term circular migration push many households into the middle and upper income ranges. However, the wealthiest households continue to rely on traditional high earning activities and do not depend on remittances. The poorest households are scattered among those who rely on remittances and those still totally dependent upon traditional low earning village activities, regardless of the sex and age of the household head."     

Macroeconomic policies and their impact on health in Zimbabwe in the 1980s and 1990s: An analysis of the prevalence of diarrhoea,malnutrition, maternal mortality and access to health services

The main objective of this article is to examine how the changes in macroeconomic policies have shaped health outcomes, particularly with regard to diarrhoea, malnutrition, maternal mortality and access to health services, and how these health outcomes vary by income, geographical location and gender. Macroeconomic policies in Zimbabwe have tended to shape health outcomes and they have also had an impact on trends in household income levels and access to health facilities. During the 1980s, the government's health policy 'Equity in health' led to increased access to health facilities. The policy of free health for low-income households made it possible for poorer groups to access health facilities more easily. However, the introduction of economic reform programmes popularly known as the Economic Structural Adjustment Programmes in Zimbabwe, has witnessed a massive shift in macropolicies. These policy changes have tended to affect the health sector in a negative manner. The introduction of user fees as a cost recovery measure and the rollback on government expenditure on social sectors, health included, have led to a reduction in the population able to access health facilities. Results of studies have shown a positive relationship between the prevalence of diarrhoea, malnutrition and access to health facilities with income levels, rural/urban location and gender.     

Telecommunication externality on migration: Evidence from Chinese villages

We use a unique data set of Chinese villages to investigate whether access to telecommunications, in particular, landline phones, increases the likelihood of outmigration. By using regional and time variations in the installation of landline phones, our difference-in-difference estimation shows that the access to landline phones increases the ratio of out-migrant workers by 2 percentage points, or about 51% of the sample mean in China. The results remain robust to a battery of validity checks. Furthermore, landline phones affect outmigration through two channels: information access on job opportunities and especially timely contact with left-behind family members. Our findings underscore the positive migration externality of expanding telecommunications access in rural areas, especially in places where migration potential is large.     

Income diversification before and after economic shocks: evidence from urban and rural Zimbabwe

The article examines changes in income and activity diversification in Zimbabwe before and after macroeconomic policy changes and the droughts of the early 1990s. Data from two comparable national surveys straddling a period of economic volatility show that the percentage of households earning income from private and informal sources grew considerably, while income from government and formal sources declined. In general, rural households tend to have a more diversified portfolio of income than urban households, and the degree of income diversification decreases with the level of urbanisation. Following the shocks, there was a marked reduction in income diversification, notably among the poor. The findings thus strengthen the need for public provision of well-designed safety nets.     

Sources of Industrial Growth in Kenya,Tanzania, Zambia and Zimbabwe: Some Estimates

Résumé: Resume: Pour etudier les sources de croissance industrielle au Kenya, en Tanzanie, en Zambie et au Zimbabwe, nous avons utilise dans cet ouvrage la methode de la formation de production appliquee a la croissance, le taux de croissance du facteur de la productivite globale (T.F.P.G.) sont calculees sur une periode allant de 1964 a 1983 pour ces pays. Pour le Zimbabwe le taux de croissance du T.F.P.G. est positif mais n'a aucune signification. Donc, pour tous ces pays une croissance de facteur des moyens de production influe en grande partie sur la croissance industrielle. En comparant des etudes faites sur les pays developpes avec celles faites sur les pays en developpement nous constatons que la contribution de l'augmentation des facteurs de production est relativement negligeable, mais celle du T.F.P.G. est significative. Puis, dans ce document nous considererons les causes approximatives de la performance nulle du T.F.P.G. dans ces pays etudies. Puis nous analyserons les variations de la capa-cite d'exploitation, des tailles du marche, des politiques macro-economiques, des structures du marche, du niveau de developpement des capacites techno-logiques. Abstract: This paper utilizes a growth accounting production function approach to analyze the sources of industrial growth in Kenya, Tanzania, Zambia and Zimbabwe. Rates of Total Factor Productivity Growth (TFPG) are calculated for these countries during periods in between 1964 and 1983. The estimates indicate negative growth rates of TFP in Kenya, Tanzania and Zambia. For Zimbabwe the growth rate of TFP is found to be positive but insignificant. Hence, for all of these countries increase in factor inputs mostly accounts for manufacturing growth. By comparison studies for developed countries and some developing countries showed a relatively unimportant contribution from increased inputs and a significant contribution from TFPG. The paper, then considers some of the proximate causes of the poor performance in TFPG in the countries—studied. The roles of changes of capacity utilization, market size, macro-economic policies, market structures, level of development of technological capability are analyzed.     

Modelling the influence of caring for the elderly on migration: estimates and evidence from Indonesia

In a society where children are expected to support the elderly, the ill health of an elderly parent is likely to influence an individual's propensity to migrate. Using data from the Indonesian Family Life Survey, we examine the manner in which the responsibility to care for an elderly parent who is in poor health affects the migration decisions of working-age adults. Our analysis suggests that individuals will be less likely to migrate if they have elderly parents who are in poor health. These findings are robust to specifications using alternative measures of poor health.     

Repositioning the urban environment question in Zimbabwe: a review of the context,conditions and processes

This analysis is a reappraisal of two perspectives in urban development in Zimbabwe: environmental sustainability and human sustenance. The discussion seeks to reposition the conservation–survival debate by broadening it to the wider urban and national macroeconomic and sociopolitical context. It re‐examines Zimbabwe's environmental problems by examining the challenges posed by urbanisation, industrialisation and informalisation. To these ‘permanent’ strands are added the ‘transient’ phenomena of structural adjustment and indigenisation. The analysis is done within the overall national macroeconomic and sociopolitical environment. The article examines environmental sustainability and human sustenance as the two policy challenges that have to be reconciled in the quest for sustainable urban settlements in Zimbabwe. The analysis stresses that the exercise of striking a balance between the needs of humankind and those of nature has to take cognisance of the complexity of issues and the processes going on elsewhere in the urban and national context.     

Trade,FDI, migration,and the place premium: Mexico and the United States

Large wage differences between countries (“place premiums”) are well documented. Theory suggests that factor price convergence should follow increased migration, capital flows, and commercial integration. All three have increased between the United States and Mexico over the last 25 years. This paper evaluates the degree of wage convergence between these countries during the period 1988 and 2011. We match survey and census data from Mexico and the United States to estimate the change in wage differentials for observationally identical workers over time. We find very little evidence of convergence. What evidence we do find is most likely due to factors unrelated to US–Mexico integration. While migration, trade, and FDI may reduce the US–Mexico wage differential, these effects are small when compared to the overall wage gap.     

Foreign capital and the prospects for Zimbabwe

Very little is known about the development or the structure of foreign ownership of the Rhodesian economy, because of the general inadequacy of statistics resulting from participation in federation in the 1950s and UDI. This paper is an attempt to put the story together, by a series of estimates, a rather heavy reliance on statistics published in 1964/1965, and an assessment of scattered information appearing more recently. It is concluded that although Rhodesian private capital is relatively much weaker than its South African equivalent, it is dominant in some important sectors. Some possible consequences of this for Zimbabwean prospects are considered.