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Migration and Development

Migration and Development. Luca Barbone World Bank. Content. Facts Opportunities and Challenges Migration Policies Conclusion. 1.Facts Immigrant Population Stocks by Host Country (226 Labor Importers, 2003). 1.Facts Migrant Population Stocks by Home Country (226 Labor Exporters, 2003).

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Migration and Development

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  1. Migration and Development Luca Barbone World Bank

  2. Content • Facts • Opportunities and Challenges • Migration Policies • Conclusion

  3. 1.Facts Immigrant Population Stocks by Host Country(226 Labor Importers, 2003)

  4. 1.Facts Migrant Population Stocks by Home Country(226 Labor Exporters, 2003)

  5. 1.Facts Migration, Remittances and Poverty • Number of migrants is estimated to be 191 mill. or 1.5% of the world population in 2005. • 78 mill. out of 191 mill. migrants were residing in developing countries. • Remittances account for 30% of total financial flows to the developing world reaching $170 bill. in 2005. • 10% increase in the share of migrants in a country's population will lead to a 1.9 % decline in poverty ($1.00 a person a day). • a 10% increase in the share of remittances in a country's GDP will lead to a 1.6% decline in poverty (Adams, 2003).

  6. 1.Facts Migration-Development Link: “The Three R’s” Migration-Development link is often understood to revolve around “the three R’s”: • Recruitment is generally understood as related to the conditions producing emigration. • Remittances affect by: • Spending on family maintenance and improvement housing, • Spending tends to be on “conspicuous” consumption, often resulting in inflation and worsening the position of the poorest, • Investing in productive activities. • Return is seen as “end product” of the migration cycle: • Incentives to return have primarily been initiated by receiving not by home countries.

  7. 1.Facts RecruitmentEmigration and Immigration Stocks, 2005

  8. 1.Facts RecruitmentShare of Migrants to Five Countries in Total Number of Migrants, 2005(%)

  9. 1.Facts Recruitment Migrant Stock Relative to the Labor Force, 2005(%)

  10. 1.Facts Recruitment Bilateral Estimates of Migrant Stocks: % in Total Number of Emigrants, 2005

  11. 1.Facts RecruitmentBilateral Estimates of Migrant Stocks: % in Total Number of Immigrants, 2005

  12. 1.Facts RemittancesBilateral Remittance, 2005 (mill. of $US)

  13. 1.Facts Remittances as aShare of GDP, 2007 (%)

  14. 1.Facts RemittancesConstruction Growth in Russia and Remittance Inflows

  15. 1.Facts Evidence Based on Household SurveysArmenia, 2006 • 26% of households received remittances from abroad. • Major transfer channels of remittances were banks and money transfer operators: • 69% of remittance-receiving households used these channels. • 18% of households had migrated household member. • 85% of migrated household members sending remittances were based in Russia, 4.5% in the US, etc. • Remittance-receiving households had relatively younger members with better education degrees.

  16. 1.Facts Evidence Based on Household SurveysKazakhstan, 2008 • Official remittances to Central Asia countries and South Caucasus were at 1.1%, and 91% of transfers were sent to Russia. • Existing legislation significantly restricted the ability of migrants to make transfers from Kazakhstan to their home countries.

  17. 1.Facts Evidence Based on Household SurveysKyrgyz Republic, 2006 • 15.8% of households received remittances from abroad. • 12.6% of households received remittances from migrated household member. • 14.9% of the households had at least one member working abroad. • 82.7% of migrants moved to Russia, 11.9% preferred Kazakhstan. • Migrant was a young man from a village or from a town other than the capital city, under age 34, having secondary education.

  18. 1.Facts Evidence Based on Household SurveysMoldova, 2007 • Over 60% of migrants were short-term workers: • Most of these traveled to Russia for the summer construction season. • Migrants were somewhat younger than non-migrants, a majority was male, and 71% came from small villages, which benefited most from remittances receiving 62 % of the total.

  19. 1.Facts Evidence Based on Household SurveysTajikistan, 2006 • 82.78% of incoming remittances were sent from Russia, 12.05% from US. • Existing regulatory and legal framework established no limits regarding inbound and outbound money transfers in Tajikistan for residents. • Share of households with at least one migrant household member was 37.3%: • the biggest share of households with migrant members was in rural areas – 42.3%. • Migrants were predominantly young married males with secondary education.

  20. Countries of Origin Migration helped to alleviate local unemployment: most of ECA countries were labor exporting. Most of the migrants were based in Russia, which is also a main source of remittances. Migration infused local economies with remittances accounting for significant share of GDP. Remittances were prone to economic performance of migrant-receiving countries. Countries of Destination Immigrants accounted for the significant share of the labor force reducing gap between labor supply and demand as populations in migrant-receiving countries declined. Migration improved economic efficiency and growth. Migration slowed down overall wage growth and inflation. 1.Facts Summarizing Evidence Migration generates substantial welfare gains for migrants and for the countries including countries of origin and destination:

  21. 2.Opportunities and ChallengesLessons Learned from GDLN • Implementing Migration Regulation • Promoting Labor Migration • Improving Financial Services and Financial Literacy • Supporting Diaspora Networks • Encouraging Coherence between Countries: • Initiating bilateral and multilateral agreements and increasing their effectiveness

  22. 2.Opportunities and ChallengesHow do Global Crises Affect Migration? • How is the situation different than in previous economic downturns? • Given global nature of the problem present crises limits potential for alternatives • Migrants are already returning to home countries where job opportunities have shrunk further • Remittances are expected to decline • Possible policy responses • Short-term: focus on social protection • Medium term: agree on innovative measures to better target workers flows and skills enhancement as host countries demand • Linkages between stimulus packages and migration • Stimulation of consumer spending • Job creation • Infrastructure rebuilding • Unfreezing access to credit

  23. 3.Migration PoliciesWhy do We Need Migration Policies? • Efforts to manage emigration by sending countries can have positive development effects: • Regulation of migration to better protect migrant workers abroad: • Better-paid and more secure employment, • Enable a greater flow of remittances back home. • Promotion of migration and seeking labor markets abroad: • Relieving domestic unemployment, • Demand for new services and businesses, sometimes making a significant contribution to the economy.

  24. 3.Migration PoliciesPolicies Regulating Migration • Passing legislation permitting emigration only to host countries which have labor and social laws protecting migrant workers • Licensing private recruitment agents • Using standard foreign employment contracts: Philippines • Having labor attachés in major consular offices: Guatemala • Providing welfare insurance • Carrying out pre-departure training, information, dissemination and counseling sessions: Sri Lanka, the Philippines and Bangladesh

  25. 3.Migration PoliciesPromoting Labor Migration • Marketing missions abroad to identify and meet potential clients • Publishing information for job seekers and recruiters on existing demand abroad: the Philippines • State recruitment: Sri Lanka • Corporate labor export measures: Turkey, India, the Philippines and Indonesia

  26. 3.Migration PoliciesPolicies on Temporary Migration • Linking with efforts to combat irregular migration: Spain, Portugal, Italy and UK • Facilitating seasonal labor migration: Europe, Canada, etc. • Ensuring the protection of migrant workers: • Egyptians working in the US and Europe are more likely to remit than Egyptians in Saudi Arabia, Libya and Jordan • Developing skills: • Migrants who received vocational training in Germany were 11% more likely to return to their home country than those who had received no vocational training, and also had a 74 per cent higher probability of repeat migration

  27. 3.Migration PoliciesPolicies on Skilled Migration • Adopt ethical recruitment codes: • A code of conduct in the education sector: UK in September 2004 at the request of Caribbean countries • Compensation to developing countries from which skilled migrants are recruited • Replenishing skills lost by the country of origin: • In Egypt, the UK Department of Health established a program to improve medical services and established a fellowship program for Egyptian doctors to come to the UK for additional experience • Utilization of the talent of highly skilled migrants whilst abroad, which will ultimately offer more to their countries of origin upon return • Internationalization of tertiary education with the possibility of exporting education programs that can build human capital and advance economic development in developing countries

  28. 3.Migration PoliciesPolicies on Remittances: Improving financial services • Countries of destination: • Information: Unfamiliar and cumbersome banking procedures may deter migrants from using banks to remit funds: UK • Access to banking services by issuing ID documents, etc.: a consular card in the US-Mexican remittance corridor • Specialized financial productsand tools: a Dutch-Philippines organization has channelled remittances to develop school infrastructure • Tax and fiscal regimes may hinder remittance transfer • Countries of origin • Financial services for the urban poor and rural populations: • one of the largest banks in Guatemala, has led the way, opening offices in rural areas, offering microloans to small clients at low rates, enabling migrant families to invest in housing, business and agriculture, and to use remittance income as collateral. • Easier and cheaper remittance transfers: • Canada-Guatemala seasonal worker program

  29. 3.Migration PoliciesPolicies on Remittances, cont’d… • Developing country partnerships: • In the UK, DFID has established Country Partnerships with Nigeria, Bangladesh and Ghana. • Involving the private sector: • In Canada, the major remitting banks, such as Bank of Nova Scotia (BNS) and Caisses Populaires Desjardins (CPD), have program tailored to seasonal agricultural workers from Mexico and the Caribbean. • Mandatory remittances: • Bangladesh, China, Eritrea, India, Israel, Lebanon, Pakistan, the Philippines and Thailand require their nationals abroad to remit a portion of their earning through formal channels back home. • Taking account of a wider range of factors: efforts to regulate migrant remittances need to be linked with broader political and financial sector reform to enhance their effectiveness: Guatemala

  30. 3.Migration PoliciesPolicies Related to Diaspora • Engaging with Diaspora communities: • Carrying out research and data collection: • French government database for skilled members of the Senegalese Diaspora, • Setting up consultative bodies for migrant associations: • The Netherlands has a National Ethnic Minorities Consultative Committee. • Supporting hometown associations: Mexico • Facilitating business investment • Allowing dual citizenship: many European countries • Promoting knowledge transfer: Guatemala

  31. 3.Migration PoliciesPolicies on Return and Reintegration • Creating obligations for return: • Return can be rendered mandatory if the admission to the country of destination is made conditional on return: the Canadian-Mexican Scheme • Financial return penalties: Singapore • Making social security portable: • Most developed countries of destination allow the payment of pensions abroad even in absence of a special agreement to this effect: • Cape Verdians in the Netherlands and Pakistanis in Norway • However, countries of origin may subject pensions earned abroad to certain deductions • Enabling productive reintegration: • Lack of employment and earning opportunities are among the major reasons inhibiting return: UK’s Voluntary Assisted Return and Reintegration Program has provided return assistance to several hundred Sri Lankans.

  32. 3.Migration PoliciesCoherence between Countries • Bilateral and multilateral agreements on migration. • Bilateral agreements may enable countries of origin to secure jobs and negotiate appropriate wages, living conditions and job security: • There were 173 involving OECD countries by 2000 • Multilateral arrangements may offer greater benefits for home countries than piecemeal bilateral arrangements: • From relatively extensive labor mobility schemes covering general freedom of movement for the highly skilled to agreements which provide access for certain groups to a system

  33. 4.Conclusion • Close information gaps and increase understanding of the effects of migration • Refine agreements between hosting and sending countries to ensure the fair treatment of migrants • Institute innovative policies that better target the needs of migrants and host countries

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