LABOR MIGRATION AND ECONOMIC DEVELOPMENT IN CENTRAL ASIA: THE ROLE OF REMITTANCES

Abstract

Labor migration is an important economic and social phenomenon in Central Asia, where limited employment opportunities and differences in wages encourage workers to seek jobs abroad. Remittances provide income for families and contribute substantially to national economies, particularly in Tajikistan, the Kyrgyz Republic, and Uzbekistan. However, their contribution to long-term development depends on how households, businesses, and governments use the financial resources and skills associated with migration. This paper examines the relationship between labor migration, remittances, and economic development in Central Asia using reports and statistical resources from international organizations and official institutions. It discusses the effects of remittances on household welfare, poverty, consumption, domestic employment, and economic vulnerability. It also examines the challenges faced by migrants, including low-skilled employment, limited recognition of qualifications, and dependence on a small number of destination countries. The analysis finds that remittances provide significant economic support, but their contribution to sustainable development is limited when they are not accompanied by productive investment, domestic job creation, and effective reintegration policies.