International Migration, Risk Management and Social Policy: The Latin American Case

1. Workshop “Social Policy and Migration in Developing Countries” International Migration, Risk Management and Social Policy: The Latin American Case Andrés SolimanoRegional AdviserECLAC, United Nations Stockholm, November 22-23, 2007

2. Contents • Main facts. • Historical background. • Determinants of international migration. • Migration and growth. • Social policy, risk management and migration. • Research issues and country studies.

3. A. Main Facts.

4. A. Main facts. • Latin America today is a net “exporter” of human capital • 26 millions outside their country • 22.3 millions (86%) in OECD countries, South-North migration. • 3.6 millions (14%) in developing nations (3.4 millions in other Latin American countries), South-South migration.

5. A. Main facts (continued). • Main destinations in the north: USA, Spain, Canada. • Main destinations in the south: Argentina, Chile, Mexico, Costa Rica, Dominican Republic. • Main reasons to emigrate: • Development gaps; • Economic and financial instability; • Poverty and inequality; and others.

6. A. Main facts (continued). • Growing international migration: new challenges to social policy: • Legal status of immigrants • Access to social services (education, health, pensions, housing and others) • Mechanisms of risk management and social protection

7. B. Historical Background and Socio-demographic Profile of Migrants

8. B. Historical background and socio-demographic profile of migrants • From 1870 – 1950 Latin America was a receiving region of European emigrants (Argentina, main recipient country). • From the 1960s the direction of migration reversed (“net exporter of people”). • Increasing emigration to the U.S. and rise of South-South migration.

9. B. Historical background and socio-demographic profile of migrants (cont.) • Only 3 countries are net immigration economies: • Argentina • Costa Rica • Venezuela

10. B. Historical background and socio-demographic profile of migrants (cont.) • Main socio-demographic patterns of Latin American emigrants: • Higher female emigration • Migrants are in their productive working-age • Higher level of education of migrants compared to nationals in country of origin

11. C. Determinants of International Migration.

12. C. Determinants of international migration. Development gaps (differences in real per capita income across countries. Macroeconomic factors (financial and economic crises). Imbalances in labor market and social conditions. Political economy variables. Migration policies in host countries. Proximity and social networks (more relevant for South-South migration).

13. D. Migration and Growth.

14. D. Migration and growth Economic growth Migration affects is affected by • As a consequence of the slowdown of growth in the last 25 years the development gaps between Latin America and developed countries persist/widened

15. Table 3. Growth crises in selected Latin American countries and reference countries, 1961-2005 Source: Solimano (2006).

16. E. Social Policy, Risk Management and Migration.

17. E. Social policy, risk management and migration. • Migration and risk: International migration as a strategy to diversify risks at family level (remittances as an insurance claim) • Migrants face special risks in host countries • Mechanisms for managing • risks: • Self-insurance • Market insurances • c) Social protection schemes • Risks facing international • migrants: • a) Economic risks • Natural disaster risks • Health risks • Legal risks

18. E. Social policy, risk management and migration (cont.) • Rights and Migration • Political and economic rights often tied to citizenship • Political rights less transferable than economic rights • Human rights, on the contrary, recognized to be universal • New trend: to recognize economic rights of emigrants (example: multilateral agreement for the transferability and “export” of pensions, Ibero American Summit of Presidents and Heads of State, Santiago, Chile, November 2007)

19. F. Research Issues and Country Studies.

20. F. Research issues and country studies. • Future studies could consider the following elements: • To estimate the magnitude and composition of stock of immigrants and emigrants. • To assess the legal status of the foreign population • To define a set of social policy variables to be studied in terms of the access by immigrants/emigrants (social protection, health, education, etc.)

21. F. Research issues and country studies (cont.) • To define the “rights at work” for foreigners (unemployment insurance, holidays, maternity leave, etc.) • To identify programs in the country of origin of the migrants that provide legal and social protection. • To assess the fiscal impact of the access to social services by the foreign population.

22. F. Research issues and country studies (cont.) • Portability of pensions and health insurance. • To estimate the effects of immigration and emigration on local labor markets (host and origin countries). • Talent circulation and “brain drain.”

23. Workshop “Social Policy and Migration in Developing Countries” International Migration, Risk Management and Social Policy: The Latin American Case Andrés SolimanoRegional AdviserECLAC, United Nations Stockholm, November 22-23, 2007 The End