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Migration and Remittances

Growth in Central Asia hinges on creating more jobs with higher wages

Lilia Burunciuc's picture
Also available in: Русский


Jobs and wage growth have been the most important driver of poverty reduction globally, and Central Asia. In Tajikistan, for example, it has cut poverty by about two-thirds since 2003. In Kazakhstan, it accounted for more than three-quarters of income growth over the past decade — even among the poorest 20 percent. The other Central Asian nations have also achieved significant economic growth and poverty reduction in the past two decades due to income growth.

But poverty-reduction rates have slowed. In Kyrgyzstan, they began slowing during the global recession of 2008, as income growth faltered. Poverty reduction in Tajikistan leveled off in 2015, when wage growth slackened and remittances from Tajiks working overseas fell.

In Uzbekistan, more than 90 percent of the poorest households have identified lack of jobs as their most urgent priority. For these families, the prospect of increasing their income is slim, while the likelihood of transmitting poverty to their children is high.

So what should countries in Central Asian do to build on their past achievements and prepare their citizens for the jobs of the future?

Romanian migrants can make a difference back home

Donato De Rosa's picture
Also available in: Română | Русский


Beautiful, newly-erected houses in an otherwise deserted place. There couldn’t be a better image for the effects of Romanian emigration, which the World Bank has analyzed in a recently published report.

If you are wondering who owns the ghost houses, you only have to look at the sheer number of Romanians living and working abroad - between 3 and 5 million according to some estimates or 3.6 million, according to the UN (2017). Of these, 2.7 million are of working age, equivalent to a staggering 20.6 percent of Romania’s working age population!

Why low oil prices are also bad news for the poor in Central Asia

Aurelien Kruse's picture
Also available in: Русский
Trade & remittancesThe conventional wisdom is that low world prices for oil only hurt rich exporting countries, while generating a windfall for poor net importer economies.

However, in Central Asia, the story is more complicated. This is because the region’s poorer countries, Tajikistan and Kyrgyzstan, depend critically on Russia through trade and remittances.

Falling remittances, reflecting the weakness of the Russian Ruble

According to just-released Russian Central Bank data, outward remittances from Russia fell sharply in the first half of the year, in USD terms. In the first six months of 2015 (relative to the same time in 2014) private transfers from Russia to Tajikistan and Kyrgyzstan are reported to have fallen by over 45% and 30% respectively. While less exposed, Uzbekistan has experienced a loss of even greater magnitude: -48%.