Foreign Aid, Remittances, and Wellbeing in Small Island Developing States

forthcoming

This proposal investigates the interrelation between foreign aid and remittances in supporting livelihoods in Small Island Developing States (SIDS). Employing an innovative, interdisciplinary mixed-methods approach, the study integrates ethnographic fieldwork, household surveys, and econometric modelling, all underpinned by the new Sustainable Livelihood Framework (SLF) proposed by Natarajan et al. (2022). The objective is to explore how foreign aid and remittances interact with six interdependent livelihood capitals (human, social, cultural, physical, financial, and natural) - interactions often overlooked in traditional development economics. The aim is to inform policies and guide the development of integrated interventions that effectively leverage both financial flows to promote resilient and diversified livelihood strategies, ultimately enhancing the long-term wellbeing of SIDS. To achieve these objectives, the project will employ a multi-sited comparative approach, focusing on Jamaica, Tonga, and Comoros. Qualitative data collection will utilise an adaptation of the CRiSTAL tool, while quantitative analysis will bridge ethnographic insights with household surveys and econometric modelling. This research directly contributes to SDGs 1, 10, 13, and 14 and aligns with the EU's commitment to the SAMOA Pathway for SIDS by examining how remittances and aid can jointly address specific social, ecological, and economic challenges faced by SIDS. Additionally, the project aims to inform EU’s Global Gateway investments in SIDS by suggesting ways to combine large-scale aid projects with grass-root remittance-driven initiatives for more comprehensive sustainable development. By uncovering the intricate dynamics between foreign aid, remittances, and livelihood capitals, this research seeks to provide policymakers with valuable insights to design targeted, efficient interventions that harness the full potential of these financial flows in small island nations and beyond.