DEVELOPING HOMELANDS: the role of migration and diaspora community in the great lakes region

1. DEVELOPING HOMELANDS: the role of migration and diaspora community in the great lakes region A paper Presented at the 1st Mbarara University Seminar Series on Peace, Security and Development By Mugisha Abbas MA, MBA, PGD-HRM Lecturer Kabale University

2. INTRODUCTION • This paper examines the role of Migration and Diaspora communities in the Great Lakes Region. • During the post colonial era many countries in the GRL had to face war and conflicts, genocide, political instability and economic disasters.

3. Introduction Contn. • Migration is the movement of a person from one country to another (International Migration) or movement with in a country, or movement transnational if migrants forge & sustain relations that link together their societies of origin and settlement (Scheller, 1992) • Diaspora is the movement of people from any nation or group away from their own country. • Migrant in the Diaspora has been instrumental for income redistribution, poverty reduction and economic growth. • Remittances sent back home by migrants in the Diaspora rose from US$ 31 billion in 1990 to US$76.8billion in 2000 and to 167.0 billion in 2005 (Kapul,2003)

4. THEORIES OF MIGRATION • Neo-classical equilibrium theory • For this particular paper I adopted, Neo-classical equilibrium theory of migration, • Formulated by the 19th century geographer Revenstein (1885) • He saw migration as an inseparable part of development and asserted that the major causes of migration were economic. • At the Macro level, Neo classical theory explains migration by geographical differences in the supply and demand for labour. • At micro level, neo classical migration theory views migrants as individuals, rational actors who decide to move on the basis of a cost benefit calculation. • Neoclassical migration theory sees rural-urban migration as an constituent part of the whole development process by which surplus labour sector supplies work force for the urban industrial economy (lewis,1954)

5. Migration patterns in the great lakes region (1960-2000) • As a result of 1959 revolution in Rwanda, Burundi hosted refugees from Rwanda, mainly Tutsis, escaping the violent power transfer to the Hutu majority in their country (Ngaruku & Nkuruziza). • In 1975, almost 350,000 refugees were hosted by Rwanda, Burundi, Ethiopia, Kenya, Uganda and Tanzania) • At the end of the 1980, Burundi and Rwanda collectively received more than 50,000 refugees from the DRC (former Zaire). • Due to the conflict situation in Rwanda, Burundi hosted almost 250,000 Rwandans at the end of 1993 (Span & Van Moppes, 2006).

6. Cont. • When the Rwandan genocide broke out in 1994, almost 300,000 Rwandans fled to the neighboring Burundi and Uganda. • At the beginning of the 1990, all countries in the region were home of a substantial amount of refugees. In the late 1900, however, more than 50,000 former refugees from Zaire were again hosted by Rwanda and Burundi.

7. MIGRATIONAND REMITTANCE FLOW IN THE GREAT LAKES REGION • The great lakes region economies including Uganda, Tanzania, Burundi and Rwanda have had a significant number of their citizens migrate in search of employment • According to migration and remittances fact book of the world bank (2011), Uganda’s stock of emigrants in 2010 stood at 757,000 contributing US$ 3,387 million in remittances from 2004-2010. • Rwanda’s stock of emigrants stood at 263,000, and contributing US$ 315 million from 2004 to 2010. • In Burundi, the stock of emigrants was 360,000 contributing US$ 10 million in remittance.

8. Cont…. • Tanzania’s emigrant stock from 2004 to 2010 stood at 316,000, contributing US$99 million . (Fact book of the World Bank, 2011). • The leading migrant host countries for the Great Lakes countries include the United States, United Kingdom, Sweden, Australia, Canada, Netherlands, and Germany. (Fact book of the World Bank, 2011).

9. a table showing migrants’ remittances flow in the great lakes region. (2004 to 2010) in US$ million Source: Fact book 2011, of the World Bank [available at www.worldbank.org/prospects/migrationandremittances]

10. THE ROLE OF MIGRATION AND DIASPORA COMMUNITIES IN THE GREAT LAKES REGION • ‘In the contemporary global context in which African governments are dependent on western financial institutions for the running of their economies, at micro level, the economic survival and prosperity of families have become equally dependent on having family members in the Diaspora’ Emmanuel Akyeampong. (Akyeampong , 2000) • The role of migration and Diaspora is still subject to debate among scholars. Most theories and conclusions are based on either empirical micro state studies or analysis of macro economic data. • Strengthens the balance of payment by providing foreign exchange

11. Cont…. • Open up opportunities for investing in children’s education, health care, etc • Loosen constraints in family budgets to invest in businesses or savings. • The Diaspora help in Poverty alleviation at household level through remittances sent to their relatives. • According to Kery smith (2012) remittances represent an important and growing, private capital flow in Uganda, more than tripling from us$ 238 million in 2000 to us$ 773 million in 2010. In 2010 remittances were approximately 4.5% of Uganda’s GDP

12. Cont, • They help in direct investment in their homeland as well as attracting other foreign investment (FDI) • They help to promote trade across national boundaries by acting as middlemen and providing market information and preferences of consumers in both host and origin countries. • The Diaspora promote the image and culture of origin country. • The Diaspora promote friendship and cooperation between the host through their personal contacts and networks.

13. CONT...... • stimulates the import of capital goods and resources that are needed for industrial development. • Source of foreign exchange • financial transfers are more stable money influx than Foreign Direct Investment even in times of political and economic crisis migrants tend to send remittances to support their families. • Politically, diaspora communities transmits valuable political ideas and practices that help in the promotion of a democratic life of the homeland. • Help positive political forces at home to make contact with important and powerful political networks.

14. cont..... • During post conflict reconstruction, Diaspora provides advise to the governments in the homeland on diverse policy issues ranging from rebuilding systems and disarming armed militias. • Socially, Diaspora communities promotes peace and political stability through the construction of civil society associations in the homeland.

15. NEGATIVE ROLES OF DIASPORA COMMUNITIES • Large influxes of foreign exchange can lead to appreciation of local currency thus making exports less competitive. • Families become dependent on remittances and as a consequence, neglect productive activities • Diaspora tend to sponsor rebel activities in their homelands.

16. Challenges faced by the Diaspora community • Integrating in the job market of their host countries. The skilled migrants are un able to obtain jobs that match their qualifications. • Racial discrimination as they are sometimes denied some opportunities even when they merit the qualification required. • The ‘high and prohibitive’ costs of formal remitting in LDC which is close to 12% of the total amount being remitted compared to the global average of 9%. For example, for a remitter sending from the UK to Uganda, the average cost is lower than from Tanzania, at 8% and 12% respectively.

17. CONCLUSION • The role of migration and Diaspora communities can not be over emphasized. Therefore, it has significant effect on economic, political and social development in the Great Lakes Region. “The future depends on what we do in the present” Mahatma Gandhi

18. Thank you Merci Beaucoup Asante Sana