Enhancing Workers' Remittances for Development in the Mediterranean Partner Countries

Abstract

The rationale of this paper lies in the fact that the areas of emigration are either generally deprived in terms of basic infrastructures, roads, markets, credit and technologies, or the infrastructure can be present but there is a lack of entrepreneurial spirit, weak institutions, and a lack of knowledge about the investments opportunities which divert the savings into non-productive consumptions or, at best, in the construction sector. Therefore, often the areas of emigration face a situation of capital-rich underdevelopment, i.e. three-floor houses equipped with all kind of electronic appliances along nonpaved roads. However, there are examples of practices at the local level, stimulated by the families left behind, the diaspora or by external agencies that successfully attempt to mobilize these savings for productive purposes. The paper will outline some of these practices and highlight the “success” factors that lie at their foundation with the aim to provide the elements for replicability in other areas and provide a tool for policy makers, donors and civil society organizations interested in engaging in this field.