The extent and use of remittances in four quite different Tongan villages is examined. In three of the villages, they constituted more than 50 percent of all income; in the other, wage employment was important. Remittances play a crucial role in raising consumption and welfare levels. Remittances are primarily sent for religious donations, food purchases and housing amenities, including investment in housing, but a proportion is also invested in the small business sector. Church expenditure also supports village development and remittances directly support village projects.
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