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MAINSTREAMING MIGRATION, DEVELOPMENT AND REMITTANCES IN THE LDC POST-BRUSSELS PLAN OF ACTION Michele Klein Solomon Director, Migration Policy and Research.

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Presentation on theme: "MAINSTREAMING MIGRATION, DEVELOPMENT AND REMITTANCES IN THE LDC POST-BRUSSELS PLAN OF ACTION Michele Klein Solomon Director, Migration Policy and Research."— Presentation transcript:

1 MAINSTREAMING MIGRATION, DEVELOPMENT AND REMITTANCES IN THE LDC POST-BRUSSELS PLAN OF ACTION Michele Klein Solomon Director, Migration Policy and Research IOM Geneva UNLDC-IV Pre-conference event New York, 17 June 2010

2 OVERVIEW 1. Introduction 2. Migration trends and key challenges in LDCs 3. The impact of the global financial and economic crisis on LDCs 4. The contribution of remittances and other diaspora resources to development 5. Policy implications and recommendations 2

3 1. INTRODUCTION IOM‘s involvement in LDCs dates back to 2001: Key message: Need for mainstreaming migration into UNLDC-IV 3 3

4 2. MIGRATION TRENDS AND KEY CHALLENGES Contrary to common perception, South-South migration is significantly more important in LDCs than South-North (World Bank, 2008) LDCs are particularly affected by highly skilled emigration to OECD countries, especially among women:  34% of LDC workers in OECD countries in 2000 (Docquier and Marfouk, 2006)  Emigration rate of highly-skilled women from LDCs 17.1 % in 2000 (Docquier et al., 2008) Migrants from LDCs send home billions in remittances  USD 24 billion in remittances 2009; 1.5 billion more than in 2008 ( World Bank, 2009; Ratha et al., 2010)  Despite low in absolute numbers, important for LDCs in relative terms as second only to ODA, superseded FDI in 2007 Key messages:  Challenge: Incomplete and unreliable data  Private funds, cannot substitute official flows 4 4

5 5 2. MIGRATION TRENDS AND KEY CHALLENGES Fast demographic growth and rural-urban migration in LDCs can strain infrastructure, service delivery and human development  Population to increase by 200 million until 2020  Urban population expected to grow by 120 million until 2020 (UN DESA/pop, 2008; 2009) Increasing numbers of immigrants in LDCs  Number grew by 600,000 since 2000; 47.6% are female migrants ( UN DESA/pop, 2009) LDCs host significant numbers of refugees and IDPs  1 in 5 refugees worldwide in 2008 received protection in an LDC  At least 2 out of 5 IDPs were forced to move within an LDC (10.5million; UNHCR, 2009)

6 Labour migration trends in LDCs:  Some of the populous Asian LDCs and Island States resorted to labour markets overseas  Predominantly intra-regional labour migration flows in sub-Saharan Africa and from Haiti The majority of workers from LDCs are lower skilled, yet immigration policies tend to favour the highly skilled LDCs are promoting temporary market access under GATS ‘mode 4‘ specifically for low-skilled service providers Key message:  Labour mobility can entail signficant welfare gains, triple ‘win‘ situation Youth unemployment as a driver of migration could turn young people into ‘youth bulge‘ 6 6 2. MIGRATION TRENDS AND KEY CHALLENGES

7 Still lacking: Effective respect for human rights of migrants, migrant workers and their children Extent of irregular migration not exactly known  possibly between 1.2 and 1.7 million in LDCs (= 10-15% of international migrants; ILO, 2004) The dangers of irregular migration:  Sexual exploitation and forced labour, women and children particularly vulnerable  Trafficking in human beings  Lack of access to basic services Key message  Protection of human rights remains a challenge 7 7 2. MIGRATION TRENDS AND KEY CHALLENGES

8 LDCs are particularly vulnerable to the detrimental effects of climate change and environmental degradation as a driver of migration  up to 860 million people in LDCs and SIDS could be affected (UN-OHRLLS, 2009)  6 out of 20 countries with the highest level of disaster- related displacement in 2008 were LDCs (IDMC and OCHA, 2009) Low coping capacity 8 8 2. MIGRATION TRENDS AND KEY CHALLENGES

9 Development impact of climate change Effects on human health Gradual deterioration of the resource base  Impact on agricultural production  Water stress  Increase in hunger, food crises and poverty Magnitude of movements from megacities in coastal areas in LDCs like Bangladesh and Myanmar could increase further Threat for livelihood strategies and human security through high number of rural and poor populations in LDCs Key message:  Need to recognize migration as an adaptation strategy, e.g. in NAPAs 9 9 2. MIGRATION TRENDS AND KEY CHALLENGES

10 10 3. THE IMPACT OF THE GLOBAL ECONOMIC AND FINANCIAL CRISIS

11 The impact is dependent on the broader economic and political context Impact of remittances at the macroeconomic level: Key source of foreign exchange Increase external value of currency or exchange rate High dependence can pose risks … and at the microeconomic level: Expand HH income – poverty alleviation Realization of the human rights to food, education, health care Inherent risks of dependency on remittances Mostly used for consumption, e.g. Angola, Bangladesh case studies 11 4. THE CONTRIBUTION OF REMITTANCES & OTHER DIASPORA RESOURCES TO DEVELOPMENT

12 Potential role of the diasporas: Private sector contributions Role in private sector development still at nascent stage Lower risk perception than traditional investors Remittances can offer  Access to capital, thus fostering entrepreneurship  Finance for public infrastructure projects e.g. in Senegal River Valley in West Africa  Promotion of the development of the financial sector Sharing of know-how and innovative practices through transnational networks e.g. HTAs of Haitians in the US 12 4. THE CONTRIBUTION OF REMITTANCES & OTHER DIASPORA RESOURCES TO DEVELOPMENT

13 Potential role of diaspora members: Trade contributions Knowledge of the local context in origin countries and the market in the destination country - Caribbean diaspora networks in trade, tourism, investment Networks and contacts in origin and destination countries - Samoan migrants in NZ Transfer of skills, technology and ideas Transfer of new values, expectations, ideas and social capital - President Ellen Johnson-Sirleaf of Liberia New techniques and transfer of human capital - workers from Vanuatu returning from NZ Donation of technology - IOM‘s MIDA project in Ethiopia Virtual transfer of skills - IOM‘s Temporary RQN project in Afghanistan, Ethiopia, Sierra Leone and Sudan Key message:  Potential role of diasporas in trade and economic development 13 4. THE CONTRIBUTION OF REMITTANCES & OTHER DIASPORA RESOURCES TO DEVELOPMENT

14 The potential role of diaspora members in peacebuilding Remittances provide a lifeline to relatives, e.g. Haiti, Somalia Support reconstruction efforts  Filling critical human resource gaps by mobilizing diasporas, e.g. IOM‘s MIDA Somalia, TRQN to Afghanistan, Ethiopia, Sierra Leone and Sudan  Generate employment As politically sensitive Need to build trust, e.g. through ‘Diaspora Dialogues‘ in the Great Lakes region, Sudan Key message: This role could be explored and strengthened further  see UN SG 2009 report on “Peacebuilding in the immediate aftermath of conflict“ 14 4. THE CONTRIBUTION OF REMITTANCES & OTHER DIASPORA RESOURCES TO DEVELOPMENT

15 15 5. POLICY IMPLICATIONS AND RECOMMENDATIONS

16 Policy levels Local / National / Bilateral / Regional / Global / Transnational 1. Enhance data collection Examples: Add migration questions to population censuses in LDCs Migration Profiles, covering 6 LDCs in Central and West Africa 2. Maximize the benefits of human mobility Short-term labour migration schemes GATS ‘Mode 4’ for low-skilled workers 3. Facilitate migrant remittances' transfers Lower transfer costs through improved technology and cooperation Linking remittances to financial products and services 16 5. POLICY IMPLICATIONS AND RECOMMENDATIONS The way forward

17 4. Leverage diasporas contributions Examples: Fostering partnerships with diasporas through outreach, recognition and institutionalization of diaspora contributions Supporting investments by diaspora members in regions of origin 5. Enhance capacities and institutional reforms Managing the mobility of human resources for development purposes Enhancing capacities of migrants’ and diasporas’ networks 6. Target measures to pro-poor and vulnerable populations Development of national policy plans for migration induced by climate change or environmental degradation Mitigating the impact of the global economic crisis through delivery of social services for most vulnerable populations 17 5. POLICY IMPLICATIONS AND RECOMMENDATIONS The way forward

18 18 5. POLICY IMPLICATIONS AND RECOMMENDATIONS New initiatives underway: International Migrant Remittances Observatory for LDCs (IMRO) under the leadership of Benin ACP Observatory on Migration, part of the ACP Migration Initiative, started recently African Remittance Institute (ARI): Signature of agreement in December 2009 ‘Mainstreaming Migration into Development Planning: A Handbook for Policy- Makers and Practitioners‘ by IOM and Global Migration Group (GMG) Key message:  Mainstreaming migration into LDCs‘ post- Brussels Plan of Action, national and regional reviews

19 19 THANK YOU mkleinsolomon@iom.int


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