Resilience pathways: Understanding remittance trends in post-coup Myanmar

Download or read book Resilience pathways: Understanding remittance trends in post-coup Myanmar written by Myanmar Agriculture Policy Support Activity and published by Intl Food Policy Res Inst. This book was released on 2024-03-04 with total page 39 pages. Available in PDF, EPUB and Kindle. Book excerpt: Remittances have emerged as an important source of income for households in post-coup Myanmar. This paper utilizes data from the second and fifth rounds of the Myanmar Household Welfare Survey (MHWS) to analyze remittance trends between January and June 2022 and the same period in 2023. This is supplemented with data from the Myanmar Migration Assessment (MMA) which was conducted with a sub-sample of MHWS households in June and July 2023. According to MHWS, between January and June 2023, 16 percent of households received remittances from at least one member who was residing overseas or in a different state or region. This comprises eight percent of households receiving remittances from migrants outside of Myanmar and ten percent of households receiving remittances from migrants within Myanmar. Around 12 percent of households received remittances from a single migrant and four percent of households received remittances from two or more members. Among households that received remittances from within Myanmar, they received on average 127,559 per month (about 61 USD). Households that received remittances from outside of Myanmar received around 395,835 per month (about 188 USD), significantly higher than the amount from migrants within Myanmar. Among remittance receiving households, remittances made up 39 percent of household income. Based on MMA data, most foreign migrants reside in Thailand and Malaysia while most domestic migrants reside in Yangon, Mandalay, or Shan. During the twelve-month period between June 2022 and July 2023, over 57 percent of migrants in the MMA sent money back to their households in Myanmar. A greater percentage of overseas migrants sent remittances, compared to migrants within Myanmar. Mobile money was the most common method for migrants within Myanmar to send money, with 70 percent sending money in this way. Instead, most migrants abroad relied on Myanmar banks, 47 percent of migrants. More than half of the households surveyed received the same level of remittances in 2022/2023 as in the previous year. Households received more remittances when migrants earned higher salaries and obtained new jobs, or when the household witnessed shifts in exchange rates or faced an increased need for remittances. Conversely, households received fewer remittances when migrants grappled with elevated living expenses, received lower salaries, or remained unemployed. The MMA data also highlights the remittance spending patterns of households over a five-year period from 2019 to 2023. About 75 percent of households allocated remittances to everyday food expenses. Remittances were also heavily used to cover non-food and health expenses, 41 and 36 percent, respectively. Asset-poor households, income poor households, and hungry households were more likely to spend remittances on everyday food and non-food expenses, education, and loan repayment. Compared to 2020, in 2023 households increased their remittance spending on home improvement, construction of new residences, and debt repayment. Combining MMA and MHWS data we investigate the characteristics associated with receiving remittances. Daughters of household heads are more likely to send remittances. Migrants with children are less likely to send remittances. Migrants aged younger than 18 are less likely to send remittances while migrants older than 40 are more likely to send remittances. Migrants with lower education are less likely to send remittances. Those migrating for employment and with work agreements are more likely to send remittances. Finally, remittances play a crucial role in improving household welfare. A final set of regressions reveal that receiving remittances is positively associated with key welfare indicators, including food security, dietary diversity, and poverty reduction.