Kathleen Newland Migration Policy Institute Migration and Development: A New Policy Arena for the Americas Presentation to the OAS Special Committee on.

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