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Migration and Remittances

Tomorrow I Will Be A Migrant

Hanspeter Wyss's picture

For the US authorities I will still be “a legal alien”, but according to the UN definition I am going to be a migrant from tomorrow on.  More precisely: I will be a long-term international migrant since I have been residing for more than twelve months in a country other than the country of usual residence.  Today, I am still a short-term international migrant (three to twelve months in another country than the one of usual residence). 

I am wondering whether the statistic offices immediately realize that there is another migrant living on this planet.  I may be the 46,199,912th migrant living in the US or one of estimated 234 million migrants living worldwide (or 3.2 per cent of the world population).   And I will also be part of the majority of international migrants (59 per cent) who lives in a developed country.

Migration megatrends – rooted in development

Dilip Ratha's picture

Migration has to happen, is happening, and will happen. We have to find ways to manage it and harness its benefits. Competition for skilled workers will increase even as there will be a need for creating more jobs for all.

There are nearly 1 billion migrants – 1 out of 7 people in the world. Of this about one-fourth, a quarter of a billion people are international migrants. Of the international migrants, south-south migration is larger than south-north migration.

And The Top Goal Scorers of the 2014 World Cup Are…Migrants!

Christian Eigen-Zucchi's picture
The 2014 World Cup is shaping up to be a goal fest, with an average of 3 goals per game so far (20 out of 64 matches played).  You would have to go back to 1958 to find an average of 3 goals or more per game.  Who are the players scoring all of these dazzling goals?  Most are migrants.  A goal scorer is deemed to be a migrant if he is thought to be living in a country outside his country of birth, as indicated by playing for a club outside his country of birth.  This is regardless of whether the national team being represented is the same as the country of birth.

In order to highlight the contributions of migrants, we will keep a running tally of goals scored by migrants and non-migrants in the chart below.  The more detailed file is available here.  Check back and see how they are doing as this exciting World Cup reaches its climax!
 
Top Goal Scorers of the 2014 World Cup

Weekly Wire: The Global Forum

Roxanne Bauer's picture
These are some of the views and reports relevant to our readers that caught our attention this week.
 

Please Do Not Teach This Woman to Fish
Foreign Policy
Is there anyone out there who doesn't think small business is the lifeblood of any economy? From Washington to Warsaw, politicians and pundits just can't speak highly enough of plucky entrepreneurs. Even in poor countries, entrepreneurship is one of the most important forces underpinning economic growth, but the best way to raise living standards and reduce poverty is not necessarily to make everyone an entrepreneur. So why do so many costly development programs apparently ignore this fact? Once upon a time, people who wanted to fight poverty believed in direct approaches that solved identifiable problems one by one. If you wanted to make farmers more productive, you gave them fertilizer. If you wanted to boost manufacturing, you set up factories. To help both of these sectors grow and export goods, you built roads and ports. These kinds of investments quelled hunger and raised incomes in many countries. But recently, an indirect approach arose with promises of still greater benefits.

Where Next for Aid? The Post-2015 Opportunity
ODI/UNDP
This joint ODI-UNDP paper looks at whether development aid will remain important in the post-2015 era, and asks how the old aid model should change in response to a dramatically new world and new sustainable development challenges. The paper suggests that the label “international public finance for sustainable development” – or IPF4SD – is a more accurate description of the types of interventions that need to be funded in the post-2015 era. This finance will also be needed over the long-term. The authors suggest ways in which these funds could reliably be raised over the long-term, as well as how the architecture which mediates IPF4SD could be improved.

In 2014, the World Cup Will Be Won By…Migrants!

Christian Eigen-Zucchi's picture

The World Cup Football finals get underway in Brazil today – the long wait is over!  They mean many different things to the billions around the world who will come together to watch, evoking intense emotions of national pride and glory, or humiliation and outrage.  Goals and calls by referees are recalled decades later, hotly debated in a passion for the ‘beautiful game.’  One key aspect of this ultimate expression of globalization is that most of the players are migrants, either playing for their national teams while currently residing in another country (such as Lionel Messi, born in Argentina, living in Spain, and playing for Argentina), or playing for a national team different from their country of birth (such as Diego Costa, born in Brazil, living in Spain, and playing for Spain), or both (such as Miroslav Klose, born in Poland, living in Italy, and playing for Germany).

Resilience vs. Vulnerability in African Drylands

Paul Brenton's picture
Woman carries wood in Ouagadougou, Burkina Faso. Source- Guillaume Colin & Pauline Penot

It’s 38°C (99°F) in Ouagadougou, the capitol city of Burkina Faso, today—and it’s been this hot all week. The end of the warm season is near, but in places like Ouaga (pronounced WAH-ga, as its better known), temperatures stay high year-round. These are the African drylands: hot, arid, and vulnerable.

Over 40 percent of the African continent is classified as drylands, and it is home to over 325 million people. For millennia, the people of these regions have adapted to conditions of permanent water scarcity, erratic precipitation patterns, and the constant threat of drought. But while urban centers like Cairo and Johannesburg have managed to thrive under these harsh conditions, others have remained mired in low productivity and widespread poverty. 

The World Bank has been partnering with a team of regional and international agencies to prepare a major study on policies, programs, and projects to reduce the vulnerability and enhance the resilience of populations living in drylands regions of Sub-Saharan Africa.

Overcoming the Risks of Securitizing Migration

Khalid Koser's picture

International migration is increasingly being viewed through the prism of national security.

Linking migration and security is not new – overseas nationals were interned in the UK and the USA during the Second World War, for example, and certain diaspora organizations were associated with terrorist attacks in Europe during the 1980s and 1990s.

Kafala neither guarantees nor cares: guest workers in the Gulf

Zahid Hussain's picture

Thomas Sennett / World Bank
Guest workers have played an integral role in the Gulf since the 1970s where the demographic changes accompanying these labor flows occurred at an extraordinarily rapid pace. The region’s aggregate population has increased more than tenfold in a little over half a century, but in no other region of the world do citizens comprise such a small proportion of the population. While this ‘demographic imbalance’ makes the Gulf unique, what differentiates it is not its economic and demographic expansion through migration but the degree to which the region’s governments have excluded foreign workers from being integrated into the national polity. This exclusion of foreign workers is a result of a conscious policy.
 
Labor migration to Gulf Cooperation Council (GCC) countries are mostly governed under a sponsorship system known as Kafala.  Migrant workers require a national sponsor (called Kafeel) and are only allowed to work for the visa sponsoring firm. The workers must obtain a no-objection certificate from the sponsor to resign and have to leave the country upon termination of the usual 2 to 3 years’ contract before being allowed to commence a new contract under a new sponsor. Tied to the sponsor, the migrants become immobile within the internal labor market for the duration of the contract. Consequently the sponsors benefit from non-competitive environments where they extract substantial economic rents from migrant workers at the expense of inducing significant inefficiencies in production.
 
The Kafeels pay workers an income above the wage in their country of origin and obtain economic rents equal to the difference between such earnings and the net marginal return from employing the migrant worker. Migrant workers are paid the initial nominal wage throughout the entire contractual period. They are even made to accept lower wages than contracted initially. Immobilized by labor restrictions, workers cannot command a higher wage even when there is demand for their services by rival firms willing to hire them in order to avoid the cost of hiring from abroad.  Kafeels have also found other ways of extracting rents in recent decades by indulging in visa trading.  They allow their names to be used to sponsor foreign workers in exchange for monetary gains.
 
Arguably, rents per-se should not directly create adverse effects because they are essentially redistributive transfers. Earnings paid to migrants are sufficient to motivate them to migrate. The migrants do not leave. But this view is over-simplistic. The combination of short contracts, flat wages, and lack of internal mobility kills the incentives for migrant workers to exercise higher effort levels in production and engage in activities that enhance their human capital.  Any productivity gain would go to the sponsor in the form of rents. The system provides incentives to entrepreneurs to concentrate on low-skills, labor-intensive activities where the extraction of economic rents is easier. Such sponsor-worker behavior explains for instance why despite the massive investments in Dubai, the economy-wide efficiency levels (average labor productivity) have not improved in the last two decades while in Hong Kong, they doubled and in Singapore quadrupled.

Why are Africans Getting Ripped off on Remittances?

Duncan Green's picture

Whatever your views of migration, a consensus ought to be possible on one thing: if migrants do send money home, as much as possible of the hard-earned dollars that they send should actually get there, to be spent on putting feeding the kids, putting them through school or even having a bit of fun (that’s allowed too).

But according to some excellent new research by the ODI, one in eight dollars remitted to Africa is creamed off by intermediaries – a much higher level than for other regions. They launched the report at a meeting in London last week, and the high preponderance of Africans at the launch bore witness to the anger this level of rent-seeking arouses.

Friday Roundup: DeLong on Piketty, Gentzkow wins Bates Medal, Mobile Money, and Remittances in Africa

LTD Editors's picture

Equitablog, run by the Washington Center for Equitable Growth, has launched a series of 'Notes and Finger Exercises on Thomas Piketty’s “Capital in the Twenty-First Century.' Brad DeLong's post, 'There Are Four r’s', details some alleged oversights in Piketty's book. In particular, DeLong focuses on how the real interest rate behaves at different levels of economic activity. He highlights Larry Summers' concern about secular stagnation and the risk that rich folks might retreat from investing in industry. And DeLong pulls out some sexy math.

Matthew Gentzkow has won the John Bates Clark Medal, an honor conferred by the American Economic Association for his contributions to "our understanding of the economic forces driving the creation of media products, the changing nature and role of media in the digital environment, and the effect of media on education and civic engagement..."


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