"We’re the nation that just had six of our scientists and researchers win Nobel Prizes—and every one of them was an immigrant," U.S. President Barack Obama recently said after the Nobel Prize winners were announced.
The Internet was abuzz about it, and how could it not be?
The announcement couldn’t come at a better time. Not only are US Nobel laureates immigrants, but also the country has been identified as one of four where the world’s high-skilled immigrants are increasingly living, according to a new World Bank research article. The other three countries are the United Kingdom, Canada and Australia.
This is the fourth in our series of posts by students on the job market this year.
Institutions are widely believed to be important drivers of development. Recently, economists have begun using detailed micro data to study how historical institutions can shape development outcomes decades or even centuries down the line. But for anyone interested in development, a key question is what causes institutions to change over time. Here, the evidence is more scant. In my job market paper, my co-author Erik Prawitz and I ask if large-scale emigration can be a mechanism leading to political change in origin countries.
This blog was first published on September 15, 2015 by Alexandre Marc, Chief Specialist for Fragility, Conflict, and Violence at the World Bank and author of the recently published book, “The Challenge of Stability and Security in West Africa. It is being re-posted this week to highlight the book’s launch event in Europe, at the Agence Française de Développement in Paris.
A few months ago, as I was walking through the streets of Bissau, the capital of Guinea Bissau, I reflected on what had happened to this country over the last 20 years. It had gone through a number of coups and a civil war; its economy had barely been diversified; electricity and water access was still a major issue. There was the city of Bissau on one side, where a semblance of services where provided, and the rest of the country on the other.
Paul Collier and Justin Sandefur are discussing migration with recent postings on the popular From Poverty to Power blog hosted by Duncan Green of OXFAM. But, can we please first agree on the question?
Collier’s blog-post starts with the question of how emigration affects people in countries of origin, and goes on to emphasize that the pertinent issue is “whether poor countries would be better off with somewhat faster, or somewhat slower emigration than they have currently.” His answer, in a nutshell, is that it depends: on the country of origin (“in small countries that are falling further behind … brain drain predominates” when there is further skilled migration) and the emigrant (students – good, unskilled – fine, skilled worker – may already be excessive). To this, one could also add that it depends on the host country (and the scope for migrants realizing their potential there) and the circumstances of the migration (voluntary or forced).
The global diaspora of educated Africans, Asians, and Latin Americans living in the developed world stand accused of undermining the development of their countries of origin.
Paul Collier’s recent book, Exodus, makes the case for strict ceilings on the movement of people from poor countries to rich ones. My colleague Michael Clemens and I already reviewed the book at length for Foreign Affairs (ungated here), but Duncan asked me to respond to the specific issue Paul raised in his recent post for this blog: that skilled migration from some low-income countries is so high that it undermines the development prospects of people “left behind”.
I suspect many people reading this blog in Europe or North America share Professor Collier’s skepticism about skilled migration. You are not racist or xenophobic. You are concerned about the plight of the global poor, and you welcome diversity in your community. But you worry that maybe Paul’s right. Maybe the fate of your university-educated Haitian neighbor down the street, earning a good salary and sending her kids to good schools since moving to the UK, is a distraction from, and maybe even a hindrance to, reducing poverty in Haiti.
The very name “brain drain” suggests that high-skilled migration can be nothing but bad for developing countries. Indeed, the prospect of a harmful effect of brain drain is often one of the first concerns raised in policy discussions around migration, and every day the news is filled with statements such as “the Philippines is suffering a crippling brain drain”, “brain drain still a big concern” in India; and that Bangladesh “must stop brain drain to take the country forward”.
However, recently there has been a surge of more optimistic views of highly skilled migration, ranging from theories of “brain gain” in which the prospect of migration in the future induces people (including those who end up not migrating) to get more education; the idea of “brain circulation”, in which migrants are meant to do wonders for their home countries once they return with knowledge and ideas from abroad; and the “create-your-own Silicon Valley” view of diaspora as a source of trade, investment funds, and inspiration.
When I recently traveled to Addis Ababa, Ethiopia, I spoke with several government officials in the Ministry of Labour and Social Affairs who told me about the many problems encountered by their migrant workers in the Middle East. As more Ethiopians, especially women, have been migrating to the Middle East as domestic workers, the embassies and consulates have received many complaints about false contracts being issued, passports of their nationals being taken away by their employers, and abuses in the work place. In order to tackle these problems, the government created the Overseas Employment Service, which is modeled after the Philippines Overseas Employment Administration.
Similar to the Philippines, the office regulates the private recruitment agencies to ensure that the migrants are not signing false contracts. All private recruitment agencies are required to obtain a 300 Birr (USD$30) license from the Ministry to recruit workers for one year (renewable), report the status of their workers, and are subject to auditing by the office to ensure that the workers are not being cheated by the agencies or their employers abroad. The office also provides pre-departure orientation seminars to educate Ethiopians about the rules of their employment contracts, how to send remittances, and the culture and work conditions in the destination country. This three hour orientation is conducted in the Ministry offices in Addis Ababa and the government has started 3 years ago to make it mandatory for those departing the country on overseas contracts.