Remittance Sub Team Proposal

The project and the “rural and urban Remittance ” aim

The project will intend to develop urban master plan for Hossana town by including 20 kilometer radios in each direction. The project is lead and administered by Wachemo University. In dealing with the economic impact of such master plan, various teams were organized. One of the team is ‘Remittance and policy impact” with its primary task of identifying the existing trend of remittance utilization activities, how flow of remittance in urban and rural area, since remittances have proven to be a more sustainable source of foreign currency for developing countries than other capital inflows such as foreign direct investment, public debt orofficial development assistance,etcand also it is important for boosting aggregate fixed capital accumulation and private investment which increase capital accumulation, reduction in current account deficit, external debt burden and improve education/skills of the households by improving human capital and poverty alleviation by improving income inequality, smoothing consumption. Hence the project focuses on how to utilization of remittance in the study area for different economic activities and thereby develop a comprehensive Remittance flow of channels model and how it could finance migrant–diaspora entrepreneurship for the sustainable livelihood of the society.