Reduction of Poverty via Remittance: An Analysis of Fiji’s Rural Households

Abstract

Remittance has been a global phenomenon and has built practical consensus. Remittances have supported financially to many individuals. An early migrant who has left the host nation and is living in a foreign country returns to their society or family members. In Fiji, almost 30 percent live below the national poverty line, which has worsened after the impact of COVID-19. Most of them reside in informal settlements with a lack of housing amenities. The article will explore the impact of remittance on poor people who receive money from families abroad and how these households manage the funds received. Generally, it is understood that remittance has a positive impact on alleviating poverty. Therefore, the paper will explore whether remittance has significantly enabled households to reduce poverty. The paper will investigate ways to analyse the significance, such as if requesting remittance plays a crucial role. To determine the remittance sent, the paper tries to find if it is based on the request made or sent by their own will. To assess the impact of remittance, the paper will analyse primary (survey) data and determine the real purpose of remittance usage by households living in poverty. The paper evaluates 159 households living in informal settlements and rural areas.