Are Remittances an Effective Mechanism for Development? Evidence from Tajikistan, 1999-2007

In many remittance-receiving countries, evidence linking remittances to household economic stability and investment is limited. Using three cross-sectional national surveys (1999, 2003, 2007) we compare remittance-receiving to non-remittance households in Tajikistan, a country highly dependent on remittances. Exploring household perceptions of financial security, wealth and entrepreneurial activity, across a period of rising remittance reliance, we find that households receiving remittances are not more economically stabile, wealthier, or entrepreneurial than non-remittance households. Findings highlight the importance of conceptualising remittances as a process influenced by the developmental contexts within receiving countries, and question previous assumptions concerning development pathways.