SIMN

Conference of World Bank on Migration and Development

On May 23 and 24, 2007, the Scalabrini International Migration Network (SIMN) was represented by Fr. Leonir Chiarello C.S. at the Conference of the World Bank on Migration and Development in Washington D.C.

The international debate about development is increasingly acknowledging the role of migration, remittances and their economic consequences. This political dialogue is exploring ways to increase its role in reducing poverty and in promoting growth. The positive effects of migration on developing countries include benefits through the money that migrants send home – remittances – but other channels of transmission, such as the transfer of knowledge, enhanced investments in human capital and in technology, are equally important. Migration, however, should not be viewed as a substitute for economic development in the country of origin since those positive flows of knowledge, human and financial resources need to be accompanied by sound domestic economic policies. In this context, the World Bank is actively engaged in strengthening the understanding of the linkage between migration and development, and in bringing that knowledge to the political dialogue at the national or regional level.

This Conference on Migration and Development provided the opportunity for a dialogue between experts in the area and the political community to identify critical sectors for interventions that foster the impact of development on migration. It also considered important topics to present at the Global Forum on Migration and Development, that will take place in Brussels, on July 9 through 11, 2007.

The Conference aimed to answer the questions concerning the priority policy issues regarding Migration and Development. In this context was analyzed the actual social, political and economic situation, considering the relation between development and equity and both the risks and opportunities of migration in international development. The six topics discussed at the Conference were: Labor Markets and Migration; Enhancing the Role of Diasporas; Brain Drain, Service Delivery, and the Public Sector; Migration Policies and Interventions; Remittances and Financial Access; Analytical and Policy Directions.

In the first session the Conference reviewed the evidence and policies regarding the labor markets and migration. This debate showed that domestic labor imperfections, in both sending and receiving countries, are one of the main drivers of migration, and because of that, migrant flows are linked to the emergence of a global labor market where demand for and supply of labor transcend international borders. The current policies that regulate the global market and the social protection for international migrants are not international but national. Then, the key policy issue is wether national immigration laws, labor market regulation, and social protection provisions are able to strike the right balance between the needs of employers and the protection for migrants. In this context, migration policies and social policies ought to be more closely integrated.

The second session analyzed enhancing the role of diasporas: trade, technology and knowledge. This debate showed that social networks between migrants and their families and others in their home country are channels that can facilitate trade, investment and technological transfers. As a linkage between host and source countries, migrants help to overcome information asymmetries and other market imperfections. Moreover, diasporas contribute to peace building and to capacity building of governance institutions, as forms of development. For example, the experience of African countries shows that diasporas contribute to develop their homeland countries by advancing a deepening processes of democratization, transferring knowledge, fostering institutional cooperation, reconstructing post-conflict institutions, supporting infra-structure and charity projects. In this context, capital transference is revealed more important than monetary transference.

In the third session, regarding brain drain, service delivery, and the public sector, the Conference revealed that brain drain can lead to the deterioration of the already-weak human capital base in developing countries, the decline of the positive externalities associated with the presence of skilled workers, and the under provision of key public services such as healthcare and education. However, educated migrants send remittances and establish linkages with global markets, enabling technology and capital flows.

The fourth session evaluated the national and international migration policies and interventions making it known that because some migration-specific policies shape migration decisions and outcomes, there is a need to better understand them in relation to development outcomes. Migrant decisions at the individual or at the household level are driven by the potential positive return- or net benefit- that they perceive when they migrate, but these movements generate important spillovers to others in both sending and receiving economies. More importantly, spillover effects from migration between two countries sometimes affect third countries. The emergence of these externalities associated with migration is what motivates the need for policies that address possible negative externalities and create opportunities to promote the positive ones. Additionally, migration may also expose other problems that reveal the need for public goods such as global coordination in development interventions providing a facilitation mechanism to identify and to share the gains and spillovers. In this context, some policy proposals were presented, for instance, the integration of international migration into development strategies, overhauling the organization of management, and making policies more coherent for more effective management.

In the fifth session, the Conference analyzed the topic of remittances and financial access. This topic considered that remittances are the most tangible and least controversial link between migration and development. Studies show that remittances reduce poverty, help sustain the families in the countries of origin, finance education and health, and ease credit constraints on small business. Remittances also tend to increase following crisis, natural disasters and conflicts and also tend to improve countries’ access to capital.  However, large remittance flows may lead to currency appreciation and adverse effects on exports, create dependence and be misused for money laundering and for the financing of terrorism. Furthermore, remittances are not a substitute for development assistance. Considering that remittances are private flows, fiscal incentives may create distortions and considering that remittances are not a substitute for official aid, the Conference presented important policy implications that should be implemented: reduction of remittance costs, prudential banking regulations, establishment of a system that facilitates the transferal of remittances, instead of reliance upon intermediaries.

In the sixth topic the Conference discussed the analytical and policy directions to prepare the Global Forum, that will take place in Brussels, on July 9 through 11, 2007. In this session, the Ambassador for Migration and Asylum Policies of Belgium, Mrs. Regina Clercq, presented the Global Forum as a new opportunity of debate to promote consensus between governments, international organizations and society regarding migration and development policies, linking migration with social development.

In brief, this Conference offered an opportunity for a dialogue between experts in the area and the political community to identify critical sectors for interventions that foster the linkage between migration and development.

Our participation as the SIMN in this type of dialogue provided us the opportunity to collaborate so that migration may be linked not just with development, but also with decent, equitable and sustainable development.

Fr. Leonir Chiarello