1 Migration and Development: Challenges for Policymaking Louka T. Katseli, Robert E.B. Lucas and T. Xenogiani Gaining from Migration Second Experts’ Workshop Paris 11 July 2006

2Outline 1.Migration and development: policy coherence needed for more effective management 2.Migration patterns, sending countries and policy regimes 3.Smart visa policies for legal migration and development 4.Mobilising and channelling remittances for development 5.Integrating international migration into development strategies 6.Policy coherence for migration and development: what role for OECD policies?

3 Migration and development interlinkages  Migration patterns  Capacity of sendingDevelopment countries to adjust require greater policy coherence between admission policies and development cooperation

4 Policy coherence for migration and development: a definition The pursuit of win-win opportunities for both host and sending countries through the systematic promotion of mutually- reinforcing policy actions.

5 Policy coherence for migration and development: what is needed?  Better understanding of migration patterns and their links to conditions in countries of origin.  Careful consideration of the interlinkages of migration and development processes.  Improved coordination of migration, trade and development cooperation policies.  Incorporation of migration into PRSPs.

6 Patterns of EU migration Europe lags behind North America in attracting highly-skilled migrants. Heterogeneity across EU countries: –Northern Europe: large share of migrants from other OECD or EU15 countries. –Southern Europe: more than 50% from neighbouring countries, transition and developing countries.

7 Three migration models coexist within the EU 15 driven by: –Historical and language ties France, Benelux,Morocco, Algeria, Spain, UK,India, Pakistan, Portugal, IrelandTurkey –Geographic proximity: Italy, Greece,Albania, Turkey, Germany, AustriaSerb-Mont, Morocco –Humanitarian considerations: Denmark, Finland,Iraq, Serb-Mont, B-H, SwedenIran Patterns of EU migration: Geography, history and politics matter

8 For an effective management of migration Need to build an Integrated European migration monitoring system

9 Future trends? In absence of migration, EU15 population is expected to drop by 10 million during the next two decades (esp. Italy, Greece, Germany and Austria). New EU members (incl. Rom. and Bulg.) are likely to experience overall population drop. Continuous need for low-skilled migrants in agriculture, tourism, construction and household services.

10 Migration pressures are likely to continue Maghreb countries are becoming migration transit countries. Increased international migration from low income SSA. Continued flows of refugees and asylum seekers from the Middle East and other regions.

11 Low-skill migration: an important driver for development Low-skill migration has greater impact on poverty reduction than migration of professionals. Only 17% of low-skilled migrants in the EU15 come from low income countries. Dominant destination of low-skilled migrants is other developing countries. Temporary migration likely to be chosen over permanent settlement if costs are not too high.

12 Smart visa policies for legal migration and development Proliferation of temporary employment schemes: joint management in 57 out of 92 countries. Limitations of specific duration guest worker programmes Multiple entry visas: device to ease return and circularity. Continuous and active monitoring of contracting arrangements. Pre-departure training and linguistic courses.

13 High-skill migration: an important driver for growth and innovation Emigration of highly-skilled persons can be beneficial for sending countries. Compensation schemes and recruiting restraints hard to administer and usually ineffective. Potential for general guidelines of recruitment and partnership arrangements. Multiple entry visas, temporary work schemes and subsidisation of replenishment activities.

14 Remittances : who benefits?  The poor if:  Poorer families migrate  Poor overseas migrants remit  Potential gains depend on admission criteria, duration of absence, family separation, intention to return.  Migration of highly skilled who settle permanently abroad with their families bring little by way of remittances to the home country.  Non-receiving households benefit through multiplier and market integration effects.

15 Remittances: how to expand benefits? Remittances not a substitute to development assistance. Lowering the cost of transfers: a priority for EU member-states. European development banks, financial institutions and development agencies can take the lead in providing improved access and innovative financial instruments. Codéveloppement: migrants and migrant associations need to be involved. Development assistance: a catalyst for diffusion of benefits.

16 Migration needs to be integrated into PRSPs  Macroeconomic management  Changes in tax revenue  Changes in expenditures  Transfer systems vs remittances  Human resource management  Incentives for temporary stay abroad (e.g. advanced seniority in public sector post)  Deployment of skills  Replenishment  Education policies  Financing higher education (loans vs grants)  Adapting curricula to local needs  Accreditation of private colleges and training facilities

17  Labour-market integration:  Improved infrastructure  Remove barriers to internal migration  Regional agreements (e.g. regional passports)  Remove barriers to labour-market entry of returning workers  ODA can be used as a catalyst to diffuse benefits of migration and facilitate adjustment through:  Promotion of infrastructure  Improvements of education and health systems  Capacity building  Co-development projects  Fellowships and training arrangements

18 Policy coherence for migration and development: what role for ODA? ODA cannot really slow migration …but it can serve as a catalyst to: –diffuse the benefits of migration –facilitate adjustment ODA channelled to investments in infrastructure can facilitate domestic labour market integration. ODA channelled to capacity building can mitigate the negative impact of the brain drain.

19 Policy coherence for migration and development: what role for trade policies? EU and OECD trade policies have a significant impact on living standards and income in low income countries and hence affect migration patterns. The joint impact of migration and trade on development should be incorporated into migration policymaking. More coherence is needed between EU and OECD trade and migration policies. The international community needs to consider the scope of GATS Mode 4 to encompass low-skilled workers.

20 Policy coherence for migration and development: what role for security policies? The interlinkages between development, migration and security should be jointly considered: a human security agenda? Strategies for risk prevention, risk mitigation and risk coping should be incorporated into migration policies.

21 EU institutional set up for greater policy coherence Rethinking of existing institutional set ups and segmentation of policy competencies across ministries, directorates and organisations. Strengthening systematic consultations across EC relevant directorates. Creation of a permanent inter-directorate liaison network as a powerful instrument for information exchange and policy consultation.

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