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Labor migration

Far from home in China: conversations with migrant workers searching for opportunities in urban centers

Joe Qian's picture
Quality Control Inspector Jiang Peng walks on scaffolding along the foundation of the water treatment facility.

While traveling through China recently, I had an opportunity to visit the Shanghai Urban Environment project in the emergent suburban district of Qingpu and spoke to a number of workers responsible for the implementation and completion of the project.

As with many infrastructure and urban development projects in China, the speed and magnitude can be astonishing, with hundreds of employees working around the clock to ensure timely completion. Work on the facility runs 24 hours a day, 7 days a week with construction workers from all over China contracted to work and live onsite until its completion in 2011. Once finished, it will improve water service, coverage, and waste water management in the region which will be essential for sustaining the increasing population and living standards.

Remittances to East Asian countries now expected to fall 6 to 8.8 percent in 2009

James I Davison's picture

A few weeks ago, the World Bank’s migration and remittances team released its latest forecast of global remittance flows, indicating that even fewer migrants from developing East Asian and Pacific countries may be sending home money this year than they predicted in an earlier report. Remittances flowing to countries in the region are now forecast to fall by 5.7-8.8 percent in 2009, according to the report (pdf). Revised 2008 data show China, the Philippines and Vietnam are in the top 10 recipients of remittances among developing countries.

Interestingly, despite indicating falling remittance flows to the East Asia and Pacific region, the outlook states that South and East Asian countries have been relatively strong. There is, of course, a risk of a further slowing down. For example, remittance money flowing to the Philippines appears to still be growing this year. But such positive flows went from 14 percent year-on-year growth in 2007-08 to just 3 percent growth so far in 2009, according to the report.

The report’s authors write that there may be key risks that further threatening global remittance flows to developing countries – including a longer-than-projected financial crisis threatening jobs and income for immigrants in developed countries. However, they write, recovery may come by next year: “We expect that remittance flows to developing countries could decline by 7-10 percent in 2009, with a possible recovery in 2010 and 2011.”

What’s the significance of remittances? One notable example came from blogger Eric Le Borgne last April. Eric pointed out that remittances are a key factor to the economic health of the Philippines, as well as the country’s resilience so far during the global financial crisis.

Remittances and the Philippines' economy: the elephant in the room

Eric Le Borgne's picture

In the World Bank's latest semi-annual economic update for the East Asia and Pacific region, titled "Battling the Forces of Global Recession" and released today, we mentioned the Philippine economy's resilience, both in absolute and relative terms.

Remittances to East Asia & Pacific expected to fall by 4 to 7.4 percent in 2009

James I Davison's picture

As jobs become fewer and income harder to come by for immigrants in developed countries, the amount of money they send back home, known as remittances, is expected to fall this year more than previously expected. The Bank's Migration and Remittances team announced the latest outlook last week on its People Move blog: "We now expect a sharper decline of 5-8 percent in 2009 ... compared to our earlier projections," wrote economist Dilip Ratha, who leads the team.

While the steepest drops in remittances are expected for Europe and Central Asia – down 10-12 percent – countries in the East Asia and Pacific region are also forecasted to fall by 4-7.5 percent in 2009. Two of the world's biggest recipients of remittances are China, which received $34 billion in 2008, and the Philippines, which saw $18 billion last year. Other big receipients in East Asia include Indonesia, Vietnam and Thailand, according to the Bank's Migration & Remittances Factbook 2008.

Is 'brain drain' a thing of the past?

James I Davison's picture

Lately, I’ve noticed several bloggers and news sites have picked up on an interesting trend migration trend that many have dubbed "reverse brain drain" – the return of skilled immigrants to their home countries. With rising unemployment and an often-difficult U.S. immigration process, the notion of looking back at home for work has reportedly appealed to foreign nationals working in the United States for technology, finance and other industries.

World Bank economist Sonia Plaza writes on the People Move blog about the shift in terminology over the years caused by new trends.

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