Remittances and disaster: a review

Over the last few decades remittances sent to the least wealthy countries have been considerably augmented. In most Small Island Developing States (SIDS), remittances are important in sustaining people's daily livelihood. Moreover, there is growing evidence that remittances intensify significantly during crisis events, thus representing a powerful and reactive mechanism in time of hardship. However, the short-term and economistic approach to remittances of most research has produced limited knowledge regarding the role of this practice in time of disaster. This paper identifies the need for further understanding of this mechanism to better inform policies geared toward disaster risk reduction. The focus is on Pacific Island Countries (PICs), where remittances and risks of disasters are elevated. This paper suggests that remittances can be both a weakness created within the vulnerability context and a strength that enables people to cope with and recover from shocks. Understanding both aspects implies appraising the function of remittances in people's day-to-day livelihood and comprehending the tangible and more intangible reasons for this mechanism to perform in the face of natural hazards. Hence, it is argued that a sustainable livelihood approach is essential, one that is more cognizant of people's perception, values and priorities. This paper concludes that building on this coping mechanism would help in achieving goals of vulnerability reduction to disasters.