UNLDC-IV Pre-conference event
New York, 17 June 2010
MAINSTREAMING MIGRATION,
DEVELOPMENT AND REMITTANCES IN THE
LDC POST-BRUSSELS PLAN OF ACTION
Michele Klein Solomon
Director, Migration Policy and Research
IOM Geneva
OVERVIEW
1.
Introduction
2.
Migration trends and key challenges in LDCs
3.
The impact of the global financial and economic crisis
on LDCs
4.
The contribution of remittances and other diaspora
resources to development
5.
Policy implications and recommendations
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1. INTRODUCTION

IOM‘s involvement in LDCs
dates back to 2001:
Key message:
Need for mainstreaming migration
into UNLDC-IV
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2. MIGRATION TRENDS AND
KEY CHALLENGES

Contrary to common perception, South-South migration is
significantly more important in LDCs than South-North
(World Bank, 2008)

LDCs are particularly affected by highly skilled emigration to
OECD countries, especially among women:

34% of LDC workers in OECD countries in 2000 (Docquier and Marfouk, 2006)
Emigration rate of highly-skilled women from LDCs 17.1 % in 2000 (Docquier et al.,

2008)

Migrants from LDCs send home billions in remittances

USD 24 billion in remittances 2009; 1.5 billion more than in 2008 (World Bank, 2009;
Ratha et al., 2010)

Despite low in absolute numbers, important for LDCs in relative terms as second
only to ODA, superseded FDI in 2007
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Key messages:
 Challenge: Incomplete and unreliable data
 Private funds, cannot substitute official flows
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2. MIGRATION TRENDS AND
KEY CHALLENGES

Fast demographic growth and rural-urban migration in LDCs can
strain infrastructure, service delivery and human development

Population to increase by 200 million
until 2020
Urban population expected to
grow by 120 million until 2020

(UN DESA/pop, 2008; 2009)

Increasing numbers of immigrants in LDCs

Number grew by 600,000 since 2000; 47.6% are female migrants (UN
DESA/pop, 2009)

LDCs host significant numbers of refugees and IDPs


1 in 5 refugees worldwide in 2008 received protection in an
LDC
At least 2 out of 5 IDPs were forced to move within an LDC
(10.5million; UNHCR, 2009)
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2. MIGRATION TRENDS AND
KEY CHALLENGES
Labour migration trends in LDCs:

Some of the populous Asian LDCs and Island
States resorted to labour markets overseas

Predominantly intra-regional labour migration
flows in sub-Saharan Africa and from Haiti

The majority of workers from LDCs are lower skilled,
yet immigration policies tend to favour the highly skilled

LDCs are promoting temporary market access under GATS ‘mode 4‘
specifically for low-skilled service providers
Key message:  Labour mobility can entail signficant welfare gains,
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triple ‘win‘ situation
Youth unemployment as a driver of migration could turn
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young people into ‘youth bulge‘

2. MIGRATION TRENDS AND
KEY CHALLENGES

Still lacking: Effective respect for human rights
of migrants, migrant workers and their children

Extent of irregular migration not exactly known

possibly between 1.2 and 1.7 million in LDCs
(= 10-15% of international migrants; ILO, 2004)

The dangers of irregular migration:

Sexual exploitation and forced labour,
women and children particularly vulnerable

Trafficking in human beings
 Lack of access to basic services
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Key message
 Protection of human
rights remains a challenge
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2. MIGRATION TRENDS AND
KEY CHALLENGES

LDCs are particularly vulnerable to the detrimental
effects of climate change and environmental
degradation as a driver of migration

up to 860 million people in LDCs and SIDS could be
affected (UN-OHRLLS, 2009)
 6 out of 20 countries with the highest level of disasterrelated displacement in 2008 were LDCs (IDMC and OCHA,
2009)

Low coping capacity
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2. MIGRATION TRENDS AND
KEY CHALLENGES
Development impact of climate change


Effects on human health
Gradual deterioration of the resource base





Impact on agricultural production
Water stress
Increase in hunger, food crises and
poverty
Magnitude of movements from megacities in coastal areas in
LDCs like Bangladesh and Myanmar could increase further
Threat for livelihood strategies and human security through high
number of rural and poor populations in LDCs
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Key message:  Need to recognize migration as an
adaptation strategy, e.g. in NAPAs
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3. THE IMPACT OF THE GLOBAL
ECONOMIC AND FINANCIAL CRISIS
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4. THE CONTRIBUTION OF REMITTANCES & OTHER
DIASPORA RESOURCES TO DEVELOPMENT
The impact is dependent on the broader economic and
political context
Impact of remittances at the macroeconomic level:

Key source of foreign exchange

Increase external value of currency or exchange rate

High dependence can pose risks
… and at the microeconomic level:

Expand HH income – poverty alleviation

Realization of the human rights to food,
education, health care

Inherent risks of dependency on remittances

Mostly used for consumption, e.g. Angola,
Bangladesh case studies
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4. THE CONTRIBUTION OF REMITTANCES & OTHER
DIASPORA RESOURCES TO DEVELOPMENT
Potential role of the diasporas: Private sector contributions

Role in private sector development still at nascent stage

Lower risk perception than traditional investors

Remittances can offer
 Access
to capital, thus fostering entrepreneurship
 Finance for public infrastructure projects
e.g. in Senegal River Valley in West Africa
 Promotion
of the development of the
financial sector

Sharing of know-how and innovative practices
through transnational networks
e.g. HTAs of Haitians in the US
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4. THE CONTRIBUTION OF REMITTANCES & OTHER
DIASPORA RESOURCES TO DEVELOPMENT
Potential role of diaspora members: Trade contributions

Knowledge of the local context in origin countries and the market in the
destination country
- Caribbean diaspora networks in trade, tourism, investment

Networks and contacts in origin and destination countries
- Samoan migrants in NZ
Transfer of skills, technology and ideas

Transfer of new values, expectations, ideas and social capital
- President Ellen Johnson-Sirleaf of Liberia

New techniques and transfer of human capital - workers from Vanuatu returning from NZ

Donation of technology - IOM‘s MIDA project in Ethiopia

Virtual transfer of skills - IOM‘s Temporary RQN project in Afghanistan, Ethiopia,
Sierra Leone and Sudan
Key message:
 Potential role of diasporas in trade
and economic development
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4. THE CONTRIBUTION OF REMITTANCES & OTHER
DIASPORA RESOURCES TO DEVELOPMENT
The potential role of diaspora members in peacebuilding

Remittances provide a lifeline to relatives, e.g. Haiti, Somalia

Support reconstruction efforts


Filling critical human resource gaps by mobilizing diasporas, e.g. IOM‘s
MIDA Somalia, TRQN to Afghanistan, Ethiopia, Sierra Leone and Sudan
Generate employment
As politically sensitive

Need to build trust, e.g. through ‘Diaspora Dialogues‘
in the Great Lakes region, Sudan
Key message: This role could be explored and strengthened further
 see UN SG 2009 report on
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“Peacebuilding in the immediate aftermath of conflict“
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5. POLICY IMPLICATIONS AND
RECOMMENDATIONS
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5. POLICY IMPLICATIONS AND
RECOMMENDATIONS
The way forward
Policy levels
Local / National / Bilateral / Regional / Global / Transnational
1. Enhance data collection
Examples:

Add migration questions to population censuses in LDCs

Migration Profiles, covering 6 LDCs in Central and West Africa
2. Maximize the benefits of human mobility

Short-term labour migration schemes

GATS ‘Mode 4’ for low-skilled workers
3. Facilitate migrant remittances' transfers

Lower transfer costs through improved technology and cooperation

Linking remittances to financial products and services
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The way forward
5. POLICY IMPLICATIONS AND
RECOMMENDATIONS
4. Leverage diasporas contributions
Examples:
 Fostering
partnerships with diasporas through outreach, recognition and
institutionalization of diaspora contributions
 Supporting
investments by diaspora members in regions of origin
5. Enhance capacities and institutional reforms
 Managing
the mobility of human resources for development purposes
 Enhancing
capacities of migrants’ and diasporas’ networks
6. Target measures to pro-poor and vulnerable populations
 Development
of national policy plans for migration induced by climate
change or environmental degradation
 Mitigating
the impact of the global economic crisis through delivery
of social services for most vulnerable populations
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5. POLICY IMPLICATIONS AND
RECOMMENDATIONS
New initiatives underway:

International Migrant Remittances Observatory for LDCs (IMRO)
under the leadership of Benin

ACP Observatory on Migration, part of the ACP Migration Initiative,
started recently

African Remittance Institute (ARI):
Signature of agreement in December 2009

‘Mainstreaming Migration into Development Planning: A Handbook for PolicyMakers and Practitioners‘ by IOM and Global Migration Group (GMG)
Key message:
 Mainstreaming migration into LDCs‘ postBrussels Plan of Action, national and
regional reviews
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THANK YOU
mkleinsolomon@iom.int
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