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

This article explores the agency of Yugoslav migrant workers ( Gastarbeiter ) and their visions of development, focusing on the establishment of a so-called remittance factory (a manufacturing facility founded primarily using the earnings of citizens working abroad, known as remittances) in the town of Pirot in today’s Serbia. The factory, ‘Tigar’, a major producer of radial Tyres since 1972, became the ‘wheel of development’ in Pirot during the socialist era. The social effects of Gastarbeiter remittances, including changes in gender roles and community cohesion, will also be explored. While Yugoslav migration theorists have primarily critiqued the irrational expenditure of Gastarbeiter savings, my research reveals that, when examined at the micro-level, Gastarbeiter demonstrated prudent investment behaviour, utilising their savings purposefully to contribute to local development upon their return. Through the use of different historical sources (documentary evidence, newspapers and oral history), this article will contribute to a deeper understanding of the complex dynamics of migration, remittance behaviour and development in socialist Yugoslavia. It will underscore the importance of recognising the agency of Gastarbeiter as one of the key contributors to the development of ‘Tigar’ factory, which still operates today, now as part of the French-owned Michelin group. Despite the article’s focus on a single case study, the same research approach can be applied to similar cases, not only in Southeast Europe but also in other emigration regions.