CHAPTER ONE

GENERAL INTRODUCTION

1.0 Introduction

Remittances represent an enormous cash flow worldwide. In many countries with substantial internal mobility, remittances are also abundant at the national levels. The work of remittances have been noticed especially the rural landscape  in development activities like,  Development associations in villages,  educational level, household well-being  and have equally play an important role  within this domain. This chapter contains, Background of the study, problem statement, research question, Main research question, Specific research question,  Research objectives, main research  objectives, specific research  objectives  , research hypothesis,  Specific research hypothesis,  Significance of the study,  scope of the study,  study areas  ,location,  Appendix, population  growth  and socio economic  activity  of Santa.

1.1 Background of the Study:

In developed countries like united stated , Mexico, Latin American,  work on the urban-rural remittances have been well elaborate with development indicators at the rural areas .In Mexico,    Woodruff and Zanteno (2001 )   investigated remittances’ effect on the level of invested capital in Mexico. Using a sample of 6000 small firms they focused on one important source of investment capital for Mexican entrepreneurs: earnings from migration by the owner or family member working in the United States. They found that remittances have significant impact on capital constraints alleviation. Their  Results indicated that remittances are responsible for almost 20% of capital invested in microenterprises and that this share reaches 40% in the areas with high emigration rates in the United States. The finding from this survey is that access to remittances may affect the decision for starting new business.

Similarly, on the institutional front, Perry et al.(2006) note that a majority of Latin America countries (the exceptions being Brazil, Chile, costa Rica, Mexico, Nicaragua Panama, Trinidad and Tobago, and Uruguay) score below what would be expected in a combined index of the six institutional measures of the Kaufmann,kraay, and Mastruzzi (2005) database.

Funkhouser,( 2001) examined the relationship between migration, remittances, labor force and self-employment participation in republic  of Nicaragua (central America) .Which he found out  that remittances have a negative effect on labor force participation and a positive, although modest impact on self-employment.

According to the United Nations (2009), more than 215 million people (3% of the world population) live and work outside the country of their birth. The international remittances sent back home by these migrant workers have a profound impact on the developing countries of Eastern Europe, Asia, Africa, Latin America and the Middle East. Remittances are an important source of income for households, in particular in developing countries.  The flow of remittances is the least influenced by economic downturn and remains a stable source of income. Remittances have been identified as the third pillar of development as their volume is second to foreign direct investment and higher than overseas development assistance. Analytical studies have shown that remittances contribute to poverty reduction in home countries. These are some of the reasons why remittances have been receiving increasingly the attention of politicians and analysts. The G7 recently called for improved information of remittances, which still remain weak ascompared to other balance of payments components.

In less developed countries for example . Bangladesh, China,   and Ethiopia  . In Bangladesh, Munzele-Maimbo and Rathta (2005) investigated  the possibility of linking and diverting migrant remittances toward microenterprise development in Bangladesh, found that Bangladeshi migrants are mostly semi- or unskilled workers whose earnings are low.    He also brought  in the    importance of foreign remittance in the economy of Bangladesh which is widely recognized and requires little reiteration. Along with the readymade garment (RMG) sector and non-farm activities in the agriculture sector, remittance have been identified as one of the three key factors that have been responsible for reducing the overall incidence of poverty as well as maintain a healthy balance of payments in Bangladesh. Bangladesh joined in the 10 billion USD of remittance inflow in fiscal year (2010).

In Ethiopia, Wogari Negari and Manoj Kumar Mishra(2019), wrote on Impact of rural-urban migration on economic growth of rural Ethiopia The study attempts to examine the role of rural-urban migration on rural economic growth in rural Ethiopia by using secondary data from World Bank from 1991 to 2016.  The paper has used the descriptive as well as inferential statistics to study the impact and hypothesis testing. In Ethiopia, rural urban migration has a significant impact on rural development. In this study two main events or indicators that happened because of rural-urban migration are identified that are urbanization and productivity of rural labour. In the model, urbanization and productivity of rural labour are assigned by the growth of urban population and rural unemployment that migrate to urban area respectively. 

In china, Corrado Giulietti (2012) in investigated the remittances and well-Being among rural-to-urban migrants in China  he estimates for China show that nearly US$30 billion were transferred from urban to rural areas in 2005 for development. (Gong et al., 2008). No work has explored whetherand how sending money back home affects the well-being of migrants. Given that remittances often constitute a large share of the earned income of migrants, it isexpected that migrants’ utility is substantially affected. For instance, migrants’welfare may be positively affected by transferring money to the family left behind,as this contributes to improving the welfare of individuals for whom they care.At the same time, however, migrants may experience a loss in welfare because ofthe reduction in their own disposable income. The principal aim of this paper is to propose a systematic approach to empirically analyse .

In Cameroon,  Mudoh Mbah and Anna Franz(2008) wrote on  Rural Revitalization and Branding of Rural Communities in Cameroon Using a Circular Approach for Sustainable Development—A Proposal for the Batibo Municipality . Their Results  show that, communities in Cameroon have high levels of poverty, poor living conditions and lagging sustainable development. Lack of  economic, social and physical infrastructure opportunities make these communities  unsustainable and impact the quality of life for residents. Existing conditions render these areas unattractive for visitors and external and local investors. Initiatives to reduce poverty and improve living standards have had limited impact to reducing poverty or improving quality of life. The recent signing of Cameroon’s decentralization law, giving authority for planning and investments to local council governments now provides an opportunity to rethink existing strategies. Using Batibo, a representative community in the north western region of Cameroon, this paper examines the status of development initiatives and identifies new priorities for planning and steps to improve economic status. Guided by the Theory of Ecological Design and Five Pillars of Economic Development, and using a circular city approach, this paper outlines a concept for town planning and architectural flagship projects that can project the image, culture and heritage of the community and strategies for improving markets. With decentralized governance and re-envisioned priorities, Batibo has an opportunity to become a prototype for sustainable development and model of a quality future in rural Cameroon.

To conclude, in Cameroon interior villages, rural development has been carried out but not necessarily from the aspect of remittances. Maybe other indicators have led to rural development. Since no work has been done in remittances, I want to bring out how an urban-rural remittance has help in the rural development. This is because little work has been documented in that domain especially in Santa sub-division where these work will be carried out. That why this research work is design to investigate the impact of urban-rural remittances to rural development in Santa sub-division.

1.2. Problem Statement

In Santa sub-division, within the past few years, urban-rural remittances have actually work for the development of these communities. It is been notices in the  field that any migrants  leaving  Santa going to different areas for instance,   Bamenda, Yaounde, Douala, Bafoussam  and even  abroad  due sent money in the form of cash and kinds for the development of this community.    For example,  They support for the well-being of the households , they support for food difficiency,  they support with  clothes  , Construction, like building in the villages, family’s,  the also support for projects in the villages to be carried out like collective projects in the village, and development associations ,the support to during  Christmas festivals like the give money to family members in preparation of December 25th in that domain and some due sent money in the village for political reasons like campaign during election period and the also support  traditional festival like during the celebration of new chiefdoms.

Likewise the negative urban-rural remittances such mis-management of this funds which can lead to improper construction of roads and infrastructures, discrimination, political interference such can embezzlement of funds which can be of help to the people

Also the level of education of the Santa sub-division is low thereby making the development of this area quite slow, the increase of educational could bring about development of this area thereby leading to increase in the standard of living.

There is little or no foreign aid with this, development in Santa sub-division has been has been hinder foreign investor find it difficult to carryout development because of the nature of the relief and also the climatic conditions

Poor soil which is over leach and eroded with this it has led to poor yielding of crops and also overgrazing by the Fulani who carryout pastoral nomadism exposing the soil to erosion which makes it make it difficult to be cultivated, with this it has led to reduction in the standard of living of the inhabitant of Santa.

 It is because of this that have motivated the researcher  to carry out this work in Santa sub-division  to investigate  the nature of remittances sent to the rural households by the rural-urban migrants, the uses of these remittances by the rural receiving households and the nature of Development  projects executed by the rural-urban in their rural communities of origin  .

1.3 Research Question

1.3.1 Main Research Question

What are impacts of urban-rural remittances to rural development to Santa Sub-division?

1.3.2 Specific Research Questions

1. What are the types of urban-rural remittances sent by migrants to rural development of Santa?
2. What is the impact of urban rural remittances to rural development in Santa.

• What are the challenges of urban-rural remittances to rural development in Santa.

1.4 Research Objectives

1.4.1 Main Research Objectives

To examine the impacts of urban-rural remittances to rural development to Santa sub-division

1.4.2 Specific Research Objectives

1. To identify the types of urban-rural remittances been sent by migrants for rural development to Santa sub-division
2. To examine the impacts urban-rural remittances to rural development in Santa sub-division