The Tyres of Change: Remittances as a Wheel of Development in Pirot, Serbia.

This article examines the role of Yugoslav Gastarbeiter (guest workers) in the development of the town of Pirot, Serbia, focusing on the establishment of the 'Tigar' remittance factory, a radial tire manufacturing plant funded significantly through migrants’ savings. It highlights how Gastarbeiter remittances contributed not only to economic development but also to social changes, including shifts in gender roles and community cohesion, challenging prevailing Yugoslav theories that characterized migrant savings as irrationally spent. Using a micro-level historical anthropological approach based on oral histories and factory newspapers, the study reveals that remittance investments enabled the expansion of local industry and facilitated employment opportunities for both men and women upon migrants’ return. The article situates Pirot’s experience within broader Yugoslav migration policies and debates on migration and development, suggesting that while migration alone cannot drive structural change, remittances played a crucial role in local socio-economic transformation.