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Transcript of Kathleen Newland Migration Policy Institute Migration and Development: A New Policy Arena for the...
Kathleen NewlandMigration 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 2006
74.5
59.7
36.6
22.015.8 13.3
9.3
18.8
31.1
42.5 51.7 53.5
5.08.6
18.0 25.226.4 26.8
9.88.4
6.1
2.7 2.33.8
1960 1970 1980 1990 2000 2006
Sh
are
of
the
Fo
reig
n B
orn
Europe Latin America Asia North America Other Regions Not Reported
0.6 0.7 3.3 1.3 6.32.0
4.12.4
0.0 3.40.0
4.1
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 1990 .Notes: The “Other regions” category includes Africa and Oceania.
Global Remittance Flows by Region, 1980 to 2007
0
50
100
150
200
250
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
Bill
ion
s o
f U
S D
olla
rs
East Asia and Pacific Europe and Central Asia
Latin America and Caribbean Middle-East and North Africa
South Asia Sub-Saharan Africa
Note: Includes on formal remittance flows.Source: Development Prospects Group, World Bank.
Remittances Linkages
Remittances
Basic Needs Capital Investment Savings
Financial Investment
Future Consumption
Housing
Education
Healthcare
Food
Housing
Retail 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 2006 -- 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
19.5
41.4
50.4
60.4
0 10 20 30 40 50 60 70
High Income OECD
Upper MiddleIncome
Lower MiddleIncome
Low Income
Days
Source: World Development Indicators
Doing Business in LAC
Starting a business Dealing with licenses Registering property
County Procedures (number)
Time (days
Procedures (number)
Time (days)
Procedures (number)
Time (days
Argentina 15 32 23 288 5 44
Brazil 17 152 19 460 14 47
Chile 9 27 12 171 6 31
El Salvador 10 26 22 144 6 33
Guatemala 13 30 23 390 5 37
Haiti 12 203 12 141 5 683
Honduras 13 44 14 199 7 36
Mexico 8 27 12 142 5 74
Panama 7 19 22 121 7 44
Peru 10 72 19 201 5 33
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 migrant’s continuing engagement in both home and adopted countries, usually involving both return and repetition
How is circular migration in the 21st 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? TokenismThe 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 NewlandMigration Policy Institute1400 16th Street NW, Suite 300Washington, DC 20036(202) 266 1940knewland@migrationpolicy.orgwww.migrationpolicy.orgwww.migrationinformation.org