Solomon IslandsPacific Remittances
Household data reveal how Pacific remittances and state assistance reach the poor differently, informing the migration debate. Remittances reach more poor households than their share of the money would suggest.
Global Newsflix 2 min read
Naren Prasad and Stephen Howes have differing views on Pacific migration. Prasad worries that reliance on migration and remittances will weaken domestic capacity, while Howes says a Pacific with more migration opportunities is better off.
The Marshall Islands 2019, 20 Household Income and Expenditure Survey shows that remittances reached 43% of people in the poorest 20%, while state social assistance reached 25%. However, the poorest group received only 10% of total remittances, against 40% of total state assistance.
Household data from Solomon Islands, Micronesia, and Fiji show a similar pattern. The World Bank’s Atlas of Social Protection Indicators of Resilience and Equity (ASPIRE) assembles social protection and transfer indicators from household surveys, allowing comparison across Pacific countries.
ASPIRE reports that remittances reach unusually far down the distribution in these Pacific countries. Across 93 other countries with remittance data, only 4% of the poorest group receives remittances in the median country.
The six Pacific surveys are all between the 85th and 99th percentiles. Remittances also reach more people in the poorest group than state assistance does in four of the six surveys.
The data from ASPIRE shows that five of the ten Pacific island countries report data on both remittances and state assistance: Fiji, Solomon Islands, Micronesia, the Marshall Islands, and Kiribati.
Fiji has two surveys, in 2008 and 2013. The ASPIRE data lets us compare the reach and amounts of these transfers across Pacific countries.
Key facts
- Remittances reached 43% of people in the poorest 20% in the Marshall Islands.
- The poorest group received only 10% of total remittances, against 40% of total state assistance.
- Household data from Solomon Islands, Micronesia, and Fiji show a similar pattern.
- Remittances reach unusually far down the distribution in Pacific countries.
Three perspectives
Neutral
The data provides insight into how remittances and state assistance are distributed across Pacific countries. The findings will inform the ongoing debate about migration. The World Bank’s ASPIRE data will be useful for policymakers.
Positive
The fact that remittances reach more poor households than their share of the money would suggest is a positive outcome. This shows that migration can have a direct benefit for the poorest people in Pacific countries.
Negative
The data also shows that the poorest group receives only a small percentage of total remittances. This raises concerns about the distribution of remittances and whether they are reaching those who need them most.
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