1. 1 1 Y EKATERINA G LOD C ENTRE FOR I NTEGRATION S TUDIES E URASIAN D EVELOPMENT B ANK Labour Migration as Part of EDB’s Centre for Integration Studies’ Research Agenda 20 May 2012

2. 2 2 EDB IN BRIEF  Created in 2006 at the initiative of the RF and Kazakhstan  Six member states: Armenia, Belarus, Kazakhstan, Kyrgyzstan Russia and Tajikistan  Bank’s charter capital exceeds USD 1.5 bln  At year-end 2011, the Bank’s investment portfolio totalled USD 3.42 bln  Manages the Eurasian Economic Community (EurAsEC) Anti-Crisis Fund  Total territory of operations – over 20 mln km² with a population of 185 mln

3. 3 3 Bank’s activities are aimed at creating conditions for a sustainable economic development and deepening integration between Member States as well as tackling the consequences of the world’s economic downturn:  Growth in mutual trade and investments  Sustainable growth in Bank’s Member States  Expanding the geography of Bank’s operations Bank’s Mission and Strategy 2011 – 2013 The Bank is called upon to become a consolidating element of financial infrastructure and a catalyst of integration between its member states:  Facilitating the advancement of market economies in the Bank’s member states;  Facilitating the countries’ economic growth;  Facilitating the intensification of trade and economic ties between the Bank’s member states through mutual investments.

4. 4 4  Financing investment projects with an integration effect  Providing technical and financial support for implementing projects with an integration effect through the Technical Assistance Fund tool  Carrying out research on economic integration by the Centre for Integration Studies Growth in Mutual Trade and Investment

5. 5 5  Bank’s investment portfolio in Central Asia (Kazakhstan and Tajikistan) is 37.72%  Modernization and upgrade of Ekibastuz Electrical Power Station – 2. Construction of a 3 rd energy block.  A cotton yarn manufacture in Tajikistan, capacity 5 ton per year. Supply of textile production machinery from Germany and its operation Bank’s projects in CA

6. 6 6 EDB’s Technical Assistance Fund  Financial support in pre-investment and innovation research. Aimed at boosting integration in Eurasia, strengthening market infrastructure and ensuring a stable economic growth in Bank’s MS in accordance with the Bank’s Mission  4 programmes: Technical Assistance as Part of Financing Investment Projects; Regional Integration Research; Innovative Economy Support; and Interregional and International Programmes.  Priority areas for research: - development of electric power production - enhancement of energy efficiency - transport infrastructure - high technology and innovation - agriculture  Research and Publications Competitions (application’s deadline 21 May 2012)  Further information on the TAF’s website: http://www.eabr.org/r/research/assistance/assistance/index.php http://www.eabr.org/r/research/assistance/assistance/index.php

7. 7 7 Centre for Integration Studies  In June 2011, the EDB opened the Centre for Integration Studies (CIS) to conduct research on issues of regional economic integration  Centre manages and conducts research; publishes reports (8-10 per year), policy papers, a quarterly and a yearbook; and hosts round tables and discussions  Focus of Centre’s research: - Trade, Economic and Corporate Integration (assessing economic effects of the Customs Union (CU); assessing economic effects and the “content” of the Common Economic Space (CES); harmonization of legislation; and activities of corporate entities) - Fiscal integration (integration of securities markets; expansion of banks and other actors; harmonization of legislation; single currency; and the EDB’s role in above- mentioned process) - Systematic study of regional integration (both post-Soviet and Eurasian continental perspectives)

8. 8 8 Research Projects Implemented in 2011 by CIS  CUSTOMS UNION AND UKRAINE: Assessment of the Economic Effects of the CU and CES and Various Forms of Deep Economic Integration with Ukraine CIS + Institute for Economic Forecasting, Moscow + Institute for Economy and Forecasting, Kiyv; Inter-industry input-output tables; modeling of CES-3 and CES-4; analytical-forecasting toolkit to assess the macroeconomic and sector-specific parameters of development for countries within the post-Soviet area  ASSESSMENT OF THE ECONOMIC IMPACT OF KYRGYZSTAN’S ACCESSION TO THE CUSTOMS UNION A number of imbalances in the economy of KR, the low savings rate, the nature of the movement of labour pushes the KR towards the development of export potential, especially targeting the CU market; a possible rise in prices ca. 2% of imported goods in the KR because of the application of the UCT CU but also an increase in budget revenues from customs duties will be ca. 42% (3% of general revenues).

9. 9 9 Labour Migration in the CES  Labour migration (mobility) is a central component in the CES. 2 out of 17 CES Agreements are on labour migration and mobility.  Labour is a factor of production. Integration of labour markets is of a higher order than trade in goods and services.  Labour mobility is of great importance for the whole of the CIS. It would be expedient to form a common labour market in the CIS to achieve the maximum effect.  Bearing in mind the scale of labour migration in the post-Soviet area, legislative regulation of migration and effective migration policies are a key component in the formation of a common labour market.  October–November 2011 – Labour Migration in the CES: IOM, Department of Population, MSU and legal experts  2 CES Agreements analysed (in force as of 1 January 2012) – On Legal Status of Labour Migrants and Members of Their Families (ALSLM) and On Cooperation in Counteracting Illegal Migration from Third Countries (ACCIM)

10. 10 CES Agreements on Labor Migration: Legal Consequences and Economic Impact  ACCIM: framework agreement – calls for developing and implementing common CES policy on countering illegal migration (CIM) (e.g. readmission agreements, exchange of information, etc.); establishes legal foundations for CIM and identifies directions and formats for such cooperation, but concrete measures will have to be delineated  ALSLM: significant contribution into the development of labour mobility legislation in the CES – sets out a legal framework for the development of a common labour market. Expands social and economic rights of labour migrants in each of the CES countries: cutting down on administrative procedures for accessing a labour market by labour migrants; extending the period of stay of labour migrants and their families in an employment country without registration; and providing social welfare and employment- related information to labour migrants.

11. 11 CES Agreements on Labor Migration: Part 2  Low at present – countries-signatories of the Agreements are largely recipients of labour migrants. Yet establishes a framework for development of a common labour market within which it would be feasible to re-distribute labour force efficiently – development of concrete programmes at the government level to this effect is required.  Significant economic impact from accession of countries-donors of migrants (Kyrgyzstan and Tajikistan) to the Agreements, through legalization of these migrants.  Reduction of the medium wage in economic sectors hiring migrants and consequential increase of labour supply  increase in employment opportunities  increase in production outputs and profits  A full report is available on the CIS’s website: www.eabr.org/r/research

12. 12 Centre’s Research Agenda 2012 – 2013 2012 : Analysis of the production links of Russian and Kazakhstan frontier regions; Monitoring CIS mutual investments; Macroeconomic Effects of the CU and CES on Tajikistan; Eurasian grain pool; Competitiveness of small economies in the context of the CU and CES; Labor migration in the CIS; EDB’s Integration Barometer and others. 2013 : Macroeconomic effects of a free trade zone between the CES and the EU; Integration and modernization: a growth model for CES economies; Implementing coordinated macroeconomic and currency exchange policies; CES technological convergence; and others

13. 13 Labor Migration in CIS’s Projects in 2012  EDB’s Integration Barometer  In which of the countries would you like to work temporarily?  In which of the countries would you like to study? In which of the countries would you like your children to study?  Labour Migration in the CIS: the Case of Kyrgyzstan  The effects of KYR’s accession to the CU on labour migration  Macroeconomic modelling  Migration survey  Macroeconomic Effects of the CU and CES on Tajikistan  Component on labour migration

14. 14 ALMATY HEAD OFFICE: 220 Dostykave., Almaty, 050051 Republic of Kazakhstan Tel: +7 (727) 244 40 44 Fax: +7 (727) 244 65 70 E-mail: info@eabr.org Web-site: www.eabr.org MOSCOW: 3 Bld. Bolshoi VatinPereulok 109240 Moscow, Russia Tel.: +7 (495) 258 27 60, 645 04 45 Fax: +7 (495) 645 04 41 ASTANA: 33, Konaeva Str., Business Centre «Astanalyk», 11th floor Astana, Republic of Kazakhstan Tel.: +7 (7172) 55 84 84 Fax: +7 (7172) 55 84 85 DUSHANBE: 24 “A” Aini Street Business center C.A.C., 4th Floor Dushanbe, Republic of Tajikistan Tel.: +992 (44) 6 40 04 45 Fax: + 992 (44) 6 40 04 46 YEREVAN: 26/1 Sargsyan Street Business center Erebuni-Plaza, 8th Floor, office 811 Yerevan, 0010 Republic of Armenia Tel.: +374 (10) 54 01 02 Fax: +374 (10) 54 13 52 MINSK: 70 Myasnikova Str., office 310 Minsk, 220030, Republic of Belarus Tel.: + 375 (17) 306 54 64 Fax: + 375 (17) 306 54 65 ST.PETERSBURG AFFILIATE: 7, Paradnaya str., St Petersburg, 191014, Russian Federation Tel.: +7 (812) 320 44 41, 320 44 45, 320 44 46 Fax: +7 (812) 329 40 41 Our contacts:

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