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Gender Dimensions of Remittances: A Study of Indonesian Domestic Workers in East and Southeast Asia
UNIFEM - 2009. "This study examines the gender-differentiated patterns in the earning, saving and remitting practices of Indonesian domestic migrant workers, as well as in receiving and using remittances in the country of origin, the role of remittances in the household’s internal dynamics, and solutions for maximising the development potential of remittances for the women migrants, their families and communities of origin. It further explores the impact of women earning income and remitting it home on the households themselves. The research draws on 60 interviews conducted with Indonesian domestic workers in Singapore, Malaysia and Hong Kong SAR, and 40 interviews with households in Indonesia who have a member working as a migrant domestic worker in one of these countries. As a micro-level approach, it shows the impacts of remittances on the family and local communities and can ultimately help policy makers to formulate and implement policies and programmes to harness the development potential of remittances. The increase in international migration has resulted in massive cash flows to countries of origin. According to ILO, the US$100 billion remitted annually by migrant workers is a larger sum than all overseas development aid, and is second only to the value of global petroleum exports in international commodity trade. Migrant remittances constitute about 10% of the GDP in countries like Sri Lanka and the Philippines, clearly establishing migrants’ contribution to development. While sex-disaggregated data on remittances is not widely available, studies in some countries show that women contribute heftily by way of remittances to countries of origin. A study by Seddon, Adhikari and Gurung in 2002 suggests that in Nepal 25% of the GDP comes from overseas remittances. Nepalese women working abroad sent home 7.6 million rupees in 1997, 11% of the total 69 million rupees remitted. This is substantial, considering women’s concentration in the informal sector in lower paid jobs than men. These figures would also be higher if undocumented flows were considered. Remittances have significant macro economic effects in several countries of origin, helping to cope with trade deficits, reducing pressure on local currency, reducing external debt. Remittances are also invested in the education and health of children and other family members and raise the average levels of income in countries of origin through multiplier effects. This publication explores gender differentiated practice in earnings, savings and remittances of Indonesian women domestic workers in Malaysia, Singapore and Hong Kong SAR. It examines the role of remittances in the internal power dynamic of households and its potential for women’s empowerment within the household and community. Finally the publication makes very concrete policy recommendations to promote women migrants’ savings, gender sensitive safe, secure, convenient remittance modes, and possibilities for productive investment of women migrant workers’ remittances.
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