Enhancing Labor Migration Management in the Greater Mekong Subregion Training Program on Enhancing Labor Migration Management in the Greater Mekong Subregion Copyright© International Organization for Migration 2012 

Module 1: Understanding Migration 1a. Types of Migration 1b. Migration Response in ASEAN and GMS MoU 1c. Migration and Development 1d. Migration Trends and Patterns 1e. Mapping Migration within the GMS Copyright© International Organization for Migration 2012 

1c. Migration and development MODULE 1: Understanding Migration (IOM) 1c. Migration and development Based on Training Modules on Labour Migration Management Developed by IOM and OSCE, 2010 26 November to 1 December 2012 at Mekong Institute in Khon Kaen, Thailand Copyright© International Organization for Migration 2012 

Learning Objectives of 1c Understand the impact of remittances in the region Know the benefits of harnessing Migration and Development, such as through Circular Migration Explore areas of potential involvement for Diaspora Share good practices Copyright© International Organization for Migration 2012 

Migration and Development Migration has important economic, social and cultural consequences for countries of origin The migration and development agenda has moved up on international agendas (e.g High Level Dialogue and Global Forum on Migration and Development) To date, there has been no agreement to date on the management strategies to be put in place, whether at international or national levels Migration for development is no longer seen only as a means of alleviating poverty Copyright© International Organization for Migration 2012 

Good Practices: Empowering Migrants for Development Remittances and investment Building Diaspora Capacities and Creating Links Circular Migration

Copyright© International Organization for Migration 2012 1c. Remittances Copyright© International Organization for Migration 2012 

Copyright© International Organization for Migration 2012 What are Remittances? Migrant remittances can be broadly defined as the monetary transfers that a migrant makes to the country of origin Remittances are generally personal, cash transfers from a migrant worker or immigrant to a relative in the country of origin They can also be invested, deposited or donated by the migrant to the country of origin Copyright© International Organization for Migration 2012 

Copyright© International Organization for Migration 2012 Remittances’ (contd). The private nature of remittances Two main stakeholders: the remittance sender and the recipient. In the middle, a host of actors: intermediaries in the transfer process, governments The private nature of remittances has to be taken into account when developing and implementing policies Copyright© International Organization for Migration 2012 

Remittances’ scale and trends Remittances to developing countries reached $381 billion in 2011 World Bank, November 2012 Copyright© International Organization for Migration 2012 

Top 10 recipients of migrant remittances World Bank, November 2012 Copyright© International Organization for Migration 2012 

Remittances from migrants as a percentage of GDP World Bank, November 2012 Copyright© International Organization for Migration 2012 

Empowering Migrants for Development 1) Remittances and investment Information gathering, provision and dissemination on transfer costs Partnerships for remittance facilitation Information on investment opportunities

Copyright© International Organization for Migration 2012 Remittances and income distribution in the household Remittances are an important source of income for many low and middle-income households in developing countries Remittances often contribute to improving household living conditions and reducing vulnerability of family members, especially women and children Remittances can constitute a steady source of poverty reduction Copyright© International Organization for Migration 2012 

Copyright© International Organization for Migration 2012 The use of remittances Three main uses can be distinguished: Consumption Investment Savings Gender differences Copyright© International Organization for Migration 2012 

Copyright© International Organization for Migration 2012 Mobilizing and channeling remittances for development Understanding remittances Size and nature of remittance channels and flows at macro, community and individual levels Behavior of remittance senders Use of remittances by recipients Gender dynamics Collecting data Remittances are typically measured using “balance of payment” data compiled by relevant statistical authorities Household survey data can be used to collect more Copyright© International Organization for Migration 2012 

Potential negative effects of remittances (cont.) Do remittances have an equalizing effect on income distribution or do they cause income inequality to rise? Economic dependence on remittances may reduce recipients families’ motivation to develop their own income-generating activities Copyright© International Organization for Migration 2012 

Copyright© International Organization for Migration 2012 Potential negative effects of remittances (cont.) Copyright© International Organization for Migration 2012 

Copyright© International Organization for Migration 2012 Mobilizing and channeling remittances for development (cont.) Fees for remittance services charged by global money transfer operators are high, regressive, and non-transparent The following actions promote efficient, safer services: Simplification of transfer procedures and extending financial network Promotion of regularization of the informal transfer sector Increased access to banking service points, both in the source and recipient countries, to reduce costs and increase efficiency Encouragement of a larger number of banking and other financial institutions in the transfer of remittances Access to services for irregular migrants Ensuring channels are equally accessible to both men and women Cooperation between governments and banks in countries of origin and countries of destination Copyright© International Organization for Migration 2012 

Copyright© International Organization for Migration 2012 Mobilizing and channeling remittances for development (cont.) The most important step governments can take to stimulate remittance flows and realize their development potential: to create a sound legal and policy environment that promotes capital inflows, including remittances In the interim, policy measures could take the form of incentives rather than compulsory remittances schemes Financial products to attract remittances Information dissemination Copyright© International Organization for Migration 2012 

Copyright© International Organization for Migration 2012 1c. Circular Migration Copyright© International Organization for Migration 2012 

Empowering Migrants for Development 2) Circular Migration Opportunities: Exploring opportunities in countries of destination Building Capacities Creating Ties for Return

Copyright© International Organization for Migration 2012 De facto circular migration Circular migration, or repeated migration is not new; on the contrary, it is an old and widespread phenomenon The de facto circular character of many traditional migration flows Free circulation of people in integrated regional systems Circular migration in the absence of effective entry/stay control of foreigners Copyright© International Organization for Migration 2012 

Copyright© International Organization for Migration 2012 Contemporary acceptance of the concept of circular migration No crystallization of the notion of circular migration European Commission definition: “A form of migration that is managed in a way allowing some degree of legal mobility back and forth between two countries.” World Forum on Migration and Development definition: “Circular Migration is the fluid movement of people between countries, including temporary or more permanent movement which, when it occurs voluntarily and is linked to the labour needs of countries of origin and destination, can be beneficial to all involved.” Copyright© International Organization for Migration 2012 

Copyright© International Organization for Migration 2012 Promises of circular migration Country of destination: promise of flexible labour Country of origin: promise of remittances and technology transfer; solution to brain-drain issues Migrant workers: promise of new legal immigration channels Copyright© International Organization for Migration 2012 

Copyright© International Organization for Migration 2012 Context of emergence of the circular migration concept Reopening labour migration channels among EU member states Interest generated by the link between migration and development Preventing irregular immigration; a primary objective   Copyright© International Organization for Migration 2012 

Copyright© International Organization for Migration 2012 Circular migration: basic guidelines An extra tool for promoting efficient migration management policies that respect migrants’ rights Conditions for a circular migration that benefit all parties concerned: Circular migration must be adapted to the labour market needs of countries of destination Circular migration must be rights-based Circular migration must set a favorable context for return Circulation migration must enable the acquisition and the transfer of skills and knowledge   Copyright© International Organization for Migration 2012 

Copyright© International Organization for Migration 2012 Circular migration: basic guidelines (cont.) Means / practices to meet the aforementioned objectives: Labour market analysis in countries of origin and destination Offer of incentives to returning migrants Information dissemination and training of migrant workers Flexible work and stay/residence permits Skills upgrading and transfer of competences Portability of social benefits and pensions Permission of dual nationality Most activities require cooperation between countries of origin and countries of destination Bilateral labour agreements are the principal means for developing circular migration schemes Copyright© International Organization for Migration 2012 

Copyright© International Organization for Migration 2012 1c. Role of Diasporas Copyright© International Organization for Migration 2012 

Empowering Migrants for Development 3) Building Diaspora Capacities and Creating Links: Promoting Involvement in Migration for Development Programmes Building Diaspora Capacities Creating Links with Diaspora

Copyright© International Organization for Migration 2012 Defining diasporas Diaspora composed of individuals originating from one country, living outside the country irrespective of their citizenship or nationality who, individually or collectively, are or could be willing to contribute to the development of their country of origin (working definition of GFMD) Diasporas should be considered as development partners for both origin and destination countries Copyright© International Organization for Migration 2012 

Copyright© International Organization for Migration 2012 Forms of Diaspora Engagement in Development Diasporas can take many forms, with differing interests, needs and experiences Diasporas as a financial resource Transfer of remittances Direct business investment Investment in capital market Charitable contributions Diaspora as a non-financial resource: Transfer of knowledge, skill and technology Trade and market linkages between origin and destination countries (job creation) Development of civil society institutions Advocacy in destination countries Copyright© International Organization for Migration 2012 

Copyright© International Organization for Migration 2012 Range of inputs into development processes Copyright© International Organization for Migration 2012 

Copyright© International Organization for Migration 2012 Summary The role of Migration and Development Migration and Development activities The importance of remittances and opportunities for Scope and opportunities in Circular Migration The importance of diaspora and their contributions to positive migration and development Copyright© International Organization for Migration 2012 

Thank you! Kristina Mejo Regional Project Development Officer International Organization for Migration (IOM) Regional Office for Asia and the Pacific E-mail: kmejo@iom.int Copyright© International Organization for Migration 2012