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Comments on “Mainstreaming Migration, Development and Remittances in the LDC Post-Brussels Plan of Action”. Michael Clemens UNITAR June 17, 2010. A migrant-centered approach. Enhance data collection Maximize benefits of mobility Facilitate remittances
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Comments on“Mainstreaming Migration,Development and Remittancesin the LDC Post-Brussels Plan of Action” Michael Clemens UNITAR June 17, 2010
A migrant-centered approach • Enhance data collection • Maximize benefits of mobility • Facilitate remittances • Leverage diasporas’ contributions • Institutional reforms
Living standard In Haiti Same person in US
100 Haitians who aren’t poor Poverty line $10/day
Poverty headcount reduction Kagera, 1991-2004
Poverty headcount reduction Kagera, 1991-2004
Gallup World Poll 2009: Ideally, if you had the opportunity, would you like to move permanently to another country, or would you prefer to continue living in this country?
What causes loss of professionals? • “Graduates are not in Malawi because they are emigrating.” • “Prices are high because merchants are raising them.”
USA Brazil
USA Philippines Brazil
Kenya USA Philippines Brazil
IOM Bangladesh Household Remittance Survey 2009 • Cost: $3,150 • Annual earnings: $3,690 (117%) • Remitted: $2,287(73%)
10,000 university students in 6 African countries • Professional advancement • Remuneration • Personal safety • The future of my children • Quality upkeep of public amenities • A level of fair taxation • 429 top high school graduates from Tonga and PNG • Health care • Children’s education • Salary • Safety and security • Quality of colleagues
Language • “Family abandonment rate” • “Great farm drain” • “Patriotic commerce rate” • “Female labor force participation” • “Industrial revolution” • “Tariff rate” • “Brain drain” • “Skill flow”
Map the following into the report’s areas of action: Magnitude of gains – how to leverage Remittances Great that there’s no so much emphasis Terrible economics, cost reduction etc. Remittances return on investment, insurance Best way to increase remittances: more movement Skilled workers Has great portions, but at the end of the day gets causation wrong Providing information to migrants How about getting information from migrants, about the fundamental causes of their departure? Too sanguine on political effects? GMU study What does migrant-centered approach really mean? Hosts letting more people move. What gov’t policy clearly lets people reach aspirations? Opening is the clearest. Poll data. If you want better opportunities for the poor, facilitate more movement.
South Africa 1994 40,000 30,000 Income per capita, US$/year 20,000 10,000 0
South Africa, Comprehensive Welfare Index Blacks 1993 Blacks 2005 Bhorat, Westhuizen, and Goga (2007), University of Cape Town
South Africa, Comprehensive Welfare Index Whites 1993 Whites2005 Bhorat, Westhuizen, and Goga (2007), University of Cape Town
South Africa 1994 World 2009 40,000 30,000 Income per capita, US$/year 20,000 10,000 0
Insurance claim • Remittances help replace lost HH income When HH income falls… Remittances rise… 0.6% 1% Filipinos overseas