Kathleen Newland Migration Policy Institute Migration and Development: A New Policy Arena for the Americas Presentation to the OAS Special Committee on Migration Issues December 1, 2008

Foreign-born in the US by Region of Birth, 1960 to Source: 2006 American Community Survey, Census 2000 and Gibson, Campbell and Emily Lennon, US Census Bureau, Working Paper No. 29, Historical Census Statistics on the Foreign-Born Population of the United States: 1850 to Notes: The Other regions category includes Africa and Oceania.

Global Remittance Flows by Region, 1980 to 2007 Note: Includes on formal remittance flows. Source: Development Prospects Group, World Bank.

Remittances Linkages Remittances Basic Needs Food Housing Retail consumption Capital Investment Housing Education Healthcare Savings Financial Investment Future Consumption Collateral

Poverty reduction: Mexico Mexico estimates that migrant remittances lowered the level of food poverty in the country from 15.9 to 13.8 percent of the population in stated otherwise, remittances lifted 2.3 million people out of food poverty. Households in "food poverty" do not have sufficient income to purchase a minimum basket of food products. Source: Consejo Nacional de Evaluacion de la Politica de Desarrollo Social, Informe de Evaluacion de la Politica de Desarrollo Social en Mexico, 2008 (Mexico: 2008).

New Housing Construction in Mexico… Accounts for 2% of GDP Totals 50.7% of all activity in the construction industry Benefits 37 other economic sectors, and Uses inputs that are almost entirely (95 percent) produced domestically Source: Calderon 2006

Development Benefits (1) Wider labor market access in higher-wage markets Higher income for migrants and their families, leading to better human development indicators Poverty reduction Reduced unemployment/underemployment Foreign exchange earnings for CoOrigin: positive impact on balance of payments and (potentially) on sovereign credit rating BUT IS IT DEVELOPMENT OR JUST THE SYMPTOMS OF DEVELOPMENT?

Development Benefits (2) Human Capital Development (at all levels of skill) Education (for children at origin) Language acquisition Relevant skills--sometimes Experience

Development Benefits (3) Integration into the Global Economy Creation of transnational networks FDI Overcoming reputational barriers Diaspora members as first movers in trade, investment, tourism Technology transfer Development of migration-related sectors of the economy: telecommunications, travel, money transfer

BUT…. The benefits of migration are no substitute for a development policy in the country of origin

Time Required to Start a Business, 2005 Source: World Development Indicators

Doing Business in LAC Starting a businessDealing with licensesRegistering property CountyProcedures (number) Time (days Procedures (number) Time (days) Procedures (number) Time (days Argentina Brazil Chile El Salvador Guatemala Haiti Honduras Mexico Panama Peru Source: World Bank 2007

AND… Migration has costs as well as benefits Brain drain is especially problematic for small states, though brain-drain is often over-rated Dependency on remittances flows may divert efforts from local development Family separation Entrenchment of low expectations from local employment possibilities

Defining circular migration PRESCRIPTIVE Global Forum on Migration and Development: 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 labor needs of countries of origin and destination, can be beneficial to all involved. European Commission: a form of migration that is managed in a way allowing some degree of legal mobility back and forth between two countries. CARIM: Temporary, renewable, circulatory (offers freedom of movement during each term), legal, respectful of migrants rights, matches labor supply in one country with labor needs in another MPI.2: A pattern of migration characterized by a migrants continuing engagement in both home and adopted countries, usually involving both return and repetition

How is circular migration in the 21 st century different from temporary migration? Return and Repetition (usually) Migrants continuously engaged in Country of Origin and Country of Destination Explicitly addresses developmental concerns Responds simultaneously to different priorities of CoOs and CoDs and provides a framework for reconciling them

Inward circular migration The cynical view Priority of countries of destination Focused on avoiding permanent migration Development content as a sweetener The positive view Co-development Provides an alternative to illegal migration Recognizes cross-national or regional ties and complementarity of labor markets

Outward circular migration The cynical view Compensating for the brain drain (a bit) Reluctance on the part of receiving countries? Tokenism The positive view Recognizing transnationalism Common interests Institutional ties

Defining success Compliance with rules Participation (migrants, employers, states) Cost-effectiveness Development impact Brings in workers with appropriate skills for labor market gaps Self-enforcing Workers rights are protected

For more information, contact Kathleen Newland Migration Policy Institute th Street NW, Suite 300 Washington, DC (202)