Remittances: an informal but indispensable form of income for seafarer families in Kiribati

Abstract

This paper discusses the distribution of remittances to Kiribati by looking at the socio-cultural elements of people and how these are linked to strategic-economic decision-making when remittances are received by families. Being employed on foreign merchant or tuna vessels has great economic advantages for Kiribati. One of the main advantages is that overseas employment is one of few employment alternatives for the working age population in Kiribati. Remittances sent back serve not only as safety nets for seafarer families, but people benefit through informal channels of distribution. It will be shown in this paper that and how remittances have led to better living conditions for families in Kiribati, increased cash flow and some investment. On the outer islands, however, remittances are often the only cash contribution for some families and are mainly used for basic needs and community contributions.