Remittances: A Practical Tool In The Battle To End Poverty In Ethiopia

Abstract

This research paper makes the case to the Ethiopian government to take action to maximize the impact remittances can have on reducing poverty in developing countries. Part I of this paper will demonstrate that while the Ethiopian government has made important strides in developing Ethiopia; the country remains deep in poverty. This section will also lay the groundwork for the migration of Ethiopians that has led a large Diaspora that has made large volumes of remittances flowing into Ethiopia possible. Part II will argue that remittances do in fact directly reduce poverty. This claim is supported by current statistics on remittances, remittances impact on various Sub-Saharan countries, and empirical data conducted by international institutions like the World Bank. Part III will conclude with action points that the Ethiopian government and the international community can take to maximize the impact remittances have on reducing poverty.