The author presents the results of ILO surveys into the motivation and
use of remittances by migrants from Tonga and Western Samoa. His anal
ysis shows that, contrary to the generally accepted view, remittances
are not only used for immediate consumption but also for savings and i
nvestment. More funds are remitted when they are intended for savings
and investment than when they are primarily for family consumption. Si
nce remittances are often transferred through informal channels, howev
er, the important contribution migrants make to savings and investment
in their home country is easily overlooked. Yet both level and use ar
e sensitive to real interest at home.