7. Framework for Harnessing Value from International Remittances to Improve Household Welfare

This chapter delves into the significant role of international remittances in improving household welfare and economic development, particularly in developing countries like Zimbabwe. It highlights how remittances form a major part of foreign currency inflows, supplementing household incomes and enhancing financial stability. The study examines the connection between remittance inflows, savings, and household welfare, revealing that remittances boost aggregate demand and investment, especially during economic downturns. Additionally, it explores the various purposes for which remittances are sent, such as education, healthcare, and business investments, and how these contribute to household welfare. The chapter also discusses the economic benefits of remittances, including gains in foreign currency reserves and improvements in financial development. Furthermore, it provides practical recommendations for policymakers and managers to harness the full potential of remittances for economic growth and development. The study concludes with a framework for enhancing remittance inflows, emphasizing the need for strategic negotiations with destination countries, training students in skills needed abroad, and subsidizing the cost of remitting funds.