Remittances and Interactions with the State

Abstract

Abstract This chapter demonstrates that changes in remittances alter the way recipients interact with, and rely upon, their state, particularly with regard to government welfare transfers and material assistance. The first part of the chapter explores how recipients interact with, and perceive the role of the state in the economy. The second part of the chapter explores what happens when remittances decline. Findings suggest that recipients are less reliant on state welfare goods than non-recipients and also believe that their state should play a reduced role in key sectors of the national economy. Nonetheless, they are also more likely to interact with their state. When remittances decline, recipients become more dependent on state transfers and they are also more likely to seek material assistance from the state. The analysis relies on cross-national survey data from Central-Eastern Europe, the Caucasus, and Central Asia and on focus group data from Kyrgyzstan.