17 August 2009 — Remittances are a significant key to the development of lower income countries. The Pacific Island nations are geographically isolated from important economic markets, and face challenges in reducing poverty. The flow of remittances contributes to the economic growth of these remote countries. Remittances by short-term migrants from the Pacific Islands to the more developed nations of Australia and New Zealand stimulate business investment and contribute to the welfare and social stability of the region. Also, labor migration schemes include both skilled and unskilled workers, helping to minimize unemployment rates in the Pacific. In New Zealand, each migrant worker from the Pacific takes home an average of NZ$5,000 at the end of four to six months. The result of this is demonstrated in Fiji, where the number of children attending school has increased significantly due to the support from a family member working abroad. Countries in the Pacific region have a high youth population, but extreme unemployment continues to be one of the main problems. For this reason, young people are victims of poverty and often this situation can lead to unrest in a country. Remittances ensure the young can take part in economic activity and help to build democracy in their home. As this policy booklet will explain, economic geography matters for development, and “reshaping” it to overcome the disadvantages of location is critical for long-term growth and poverty-reduction. New development thinking in the twentyfirst century outlines potential solutions for small and remote countries seeking to improve their development results and break out of the bottom billion. | 
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