The Role of Remittances in Risk Management and Resilience in Tuvalu: Evidence and Potential Policy Responses
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Remittances are often perceived as having multiple roles in strengthening resilience to environmental shock. They may be a form of social protection in the wake of a natural disaster, when the funds received can be used to provide basic necessities, rebuild shelter and livelihoods. Remittances are also thought to be used to strengthen ex-ante preparedness in disaster-prone regions, or invested into other resilience strategies to support the well-being of the household or community in question. This chapter analyses the empirical evidence of this conceptual relationship, concluding that while the link between remittances and coping strategies after a disaster has empirical backing, the evidence of remittances improving ex-ante risk management is sparse, and likely to be much more nuanced. Tuvalu, a country firmly dependent on remittances and at the same time, extremely environmentally vulnerable, provides a case study on the relationship between risk management and remittances and the chapter concludes with policy recommendations that can assist to strengthen resilience through remittances.
KeywordsLabor migration Remittances Pacific
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