Migration. Harnessing the opportunities to promote development. BMZ Information Brochure e

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1 Migration Harnessing the opportunities to promote development BMZ Information Brochure e

2 Contents Foreword People on the move The root causes of migration Migration as a factor in development The potentials The downside Triple-win situation Clear objectives and many ways of achieving them Devising fair rules and regulations A pro-development framework European dialogue with regions of origin Specifically supporting the potentials offered by migration The instruments of German development cooperation Sound advice Policy advisory services in the countries of origin Secure and cost-effective transfers Making the best possible use of remittances Close ties to their home countries Cooperating with migrants organisations Good business ideas called for Harnessing private-sector potential for development Inter-cultural mediators Supporting returning experts Explaining development policy to raise acceptance Contact addresses

3 Foreword Everybody is entitled to leave the country of their birth. Throughout the ages women and men have migrated in the hope of finding new opportunities, of feeding their families, sending their children to school, studying in another country, or gaining new experience. Migration is a global reality. About 216 million people, or about three per cent of the world s popu - lation, are currently living outside their country of origin. It would also appear that migration is set to become increasingly important. Globalisation entails mobility, and job markets are becoming more and more international. The demographic developments in industrialised nations and developing countries are moving in opposite directions, presenting opportunities, imperatives and incentives to migrate. Climate change will also increase pressure on some populations to migrate. I am convinced that we would be well advised to pay more attention to the entire issue of migration. With the right strategy, we can ensure that migration can benefit all parties, the migrants themselves, the countries of origin and the receiving countries. Many migrants come from developing countries. Development policy aims to help give these people genuine prospects in their own countries. It thus tackles some of the root causes of migration movements and will, in the long term, help to reduce the pressure on individuals to migrate to escape poverty and hardship. Migration, though, should not be seen as a burden. Above all it is an opportunity, for developing countries in particular. The resulting cash and knowledge transfers can foster economic growth. Migrants form international networks, which can open up new channels for trade. Countries that appreciate that their societies must change if they are to develop, value the role played by migrants as change agents. With our development policy, Dirk Niebel Federal Minister for Economic Cooperation and Development we intend to help our partner countries harness the positive potential offered by migration and use this to achieve the Millennium Development Goals. This publication lays out some of the root causes of migration, and the opportunities and risks the phenomenon poses, and presents the manifold approaches and instruments used in this field by the Federal Ministry for Economic Cooperation and Development (BMZ). The specific examples we look at demonstrate how migrants play an active role in their new environments and make remarkable contributions to helping their countries of origin. They are one of the sections of civil society that are particularly active in the field of development, both in Germany and in their countries of origin. They build economic and cultural bridges between the two. The BMZ works with migrants organisations to foster help towards self-help, and encourages their civic involvement. I commend this publication to you and thank every one of you who decides to become actively involved. The list of contact addresses in the annex should help you find the partners you need. It is well worth doing all we possibly can to enable people in developing countries to lead their lives in dignity and freedom. Dirk Niebel Federal Minister 5

4 People on the move The root causes of migration Around the globe, people love their children and their families, and are part of social structures, cultures and traditions. These are the structures that give them the feeling of belonging and underpin the quality of their lives. Nevertheless, people decide every day to relinquish all of this, to try their luck in a strange country, some of them risking everything to migrate illegally. Nobody takes a decision of this magnitude without good reason. Currently about three per cent of the world s population, some 216 million people, live outside their countries of origin. Some 45 per cent of migrants move from a developing country to an industrialised country. However, the majority move from one country to another in the same development category. Larger-scale movements, or migration, can always be seen when the gap between income and living conditions in two different regions is wide, when problems in the country of origin put the people under great pressure, and/or when the destination countries appear particularly attractive. A lack of prospects, poor governance, high unemployment rates, political or social conflicts, a lack of educational opportunities and health care, drought, worsening environmental degradation and climate change are some of the major factors that motivate migrants to leave their homes. The 16 million or so individuals fleeing war and persecution in their own countries are recognised as refugees. Throughout history people around the world have turned their back on the country of their birth to risk an uncertain future in another country. The reasons that move them are as varied as the routes they take and the means of transport they use. 216 million people today live outside the country in which they were born. 6

5 Through the media, people find out how attractive life is, or at least appears to be, in neighbouring countries, not to mention more distant parts of the world. With modern means of communication it is easy to find out about living conditions anywhere else in the world, anywhere at any time, and there is always some way of getting there. To keep pace with globalisation it is becoming increasingly important to study abroad and to be part of international networks. Following in the footsteps of the globalisation of the commodities and capital markets, job markets too are increasingly expanding beyond national borders. Globalisation is unthinkable without mobility. The diverging demographic developments in many industrialised and developing countries further underpin this trend. To put it in a nutshell, in this era of globalisation, migration is an integral part of our day-to-day reality, and one that is set to become increasingly important. Migration used to be seen as a one-way movement. People left their countries of origin, the educated taking with them their brains and the less educated their brawn, entirely to the disadvantage of the countries of origin. In fact though, migrants and their descendents retain close ties to their countries of origin and their families over very long periods of time. These ties generate development opportunities (transmigration), which are now much appreciated by many developing countries. 7

6 Migration as a factor in development The potentials To begin with the decision to emigrate is a personal decision or a decision taken by the entire family, who are also prepared to make sacrifices to this end. Migration can be a way of escaping poverty. For migrants and for their families who have remained at home migration offers excellent chances of bettering their living conditions. The less developed the country of origin, the greater the opportunity. This is impressively demonstrated by the 2009 Human Development Report published by the United Nations Development Programme, Overcoming barriers: Human mobility and development.... for the countries of origin People who leave their homes to seek their fortune in another part of their own country or continent, or who set their sights on an industrialised country do not generally sever all ties with their own country. Quite the reverse is the case in fact. Once they have established a new home in a destination country, many of them regularly send money to their families and friends. These remittances total 325 billion dollars a year, more than double the official development assistance provided around the world. Many family members use the money to set up small businesses in the migrant s country of origin. They send their children to school and are able to pay for health care. The international community is increasingly harnessing the opportunities offered by the phenomenon of migration for both the countries of origin and the countries of destination. Associations and networks set up by migrants from the same source country, sometimes known as diaspora communities, often initiate non-profit or private-sector activities in their new homes, Many migrants actively build bridges between their countries of origin and their countries of residence. Quite apart from the money they send to their families, migrants transfer social, technical and cultural expertise, to the benefit of all. 8

7 which target their countries of origin. In this way they strengthen the local infrastructure in their countries of origin and the economy in general. Capital and expertise acquired abroad are ploughed back into their home countries. Frequently, migration means not only going away. It also means coming back. Migration is not generally intended to be a permanent state. Students often stay in the host country only until they graduate, or until they have acquired their first professional experience. Those already in work return once they have saved up enough to allow them to establish a livelihood in their own country, or once the circumstances in their country of origin have changed such that they can again see genu - ine prospects of a future there. The knowledge and the capital that migrants have acquired away from their native countries, plus the networks they have built a factor that is increasingly important in this era of globalisation mean that they can help develop their own countries. It is not only technical expertise that is important. Soft skills too are very valuable: the experience of living in another social order, familiarity with a different culture, linguistic skills, and the ability to deal with other ways of living. Migrants can build bridges across which capital and expertise can move from receiving to sending countries. In this way they make a major contribution to social and economic development in their own countries, and thus also to achieving the Millennium Development Goals (MDGs). for the countries of destination Many host countries realise that, far from posing a threat, migration can have many positive impacts. Migrants keep up production levels in aging societies and create new trade links to their countries of origin. Many European businesses are even now experiencing difficulties recruiting enough highly qualified specialists. They are already vying with one another to recruit the best people. The situation is further aggravated by the fact that many other jobs cannot be filled with local workers. This applies particularly to carers and domestic staff, employees working in the catering trade, and seasonal labourers. In view of the demographic developments in many industrialised countries this trend seems set to become more marked. In Germany too, we will have to take steps to make good the foreseeable shortfall of specialists, as laid out in the Coalition Agreement signed in October The downside When highly qualified individuals emigrate, however, they leave gaps in their own countries. Their knowledge is lost to the country where it is so desperately needed. This is particularly true in the education and health sectors. Some countries are facing major difficulties in providing adequate health care services as qualified health professionals leave the country in droves. Yet many sending countries do not offer enough appropriately paid job opportunities for these highly qualified individuals. The potentially positive impacts of migration do not just happen by chance. We can only manage to build knowledge if migrants are employed in jobs commensurate with their qualifications. Often enough this is not the case, if only because their professional qualifications are not recognised. In this case, rather than a brain gain we see the available talent going to waste. Neither is it always easy for returning migrants to reintegrate in the country of origin. And, if extensive remittances from abroad are concentrated on a very few regions, they can push up prices, including house prices, making it 9

8 impossible for those who have stayed at home to gain a toe-hold on the housing market. Huge remittances can also generate dependency. In their quest to find work, migrants are often separated from their families, so that their children grow up without parents. The burden on all parties concerned is massive, over a long period of time. Entire village communities can end up losing their adult male population. The additional dangers of illegal migration are obvious. Migrants are smuggled into the country of their choice in a variety of dangerous ways by criminal gangs. When they finally make it to their destination many find themselves confronted with poverty, exploitation and exclusion, not to mention human rights violations. These situations can arise in the cases of both migration from a developing country to an industrialised country or in the case of migration from one developing country to another. This also throws a light on the problems that immigration poses for receiving countries, which do not always find it easy to integrate people coming from different cultural backgrounds. Triple-win situation In spite of these problems, if we look more closely we can see that migration can have a positive or a negative impact on the migrants themselves, the countries of origin and the countries of destination. Experience shows that good migration management can ensure that the benefits far outweigh the risks. The BMZ s development policy aims to harness these findings for the development of partner countries and to use the potentials to help achieve the Millennium Development Goals. The exchange of knowledge and acquiring professional and personal experience in another country is termed the brain gain. Many migrants put the knowledge they have acquired abroad to good use, helping their countries of origin. 10

9 Development cooperation aims to tackle the underlying root causes of poverty. The factors behind migration include the prosperity gap and armed conflicts. Clear objectives and many ways of achieving them Development policy aims to give people the freedom to take charge of their own lives and to meet their basic material needs. That is why we tackle the root causes of poverty, open up new prospects through help towards self-help and thus help achieve the United Nations Millennium Development Goals. Since poverty is one of the factors that trigger migration, we also de facto tackle some of the root causes of migration. We initiate reform processes in partner countries and help them to develop their economies and societies, giving people prospects of a better life in their own countries. These changes take time. Years can pass before the local population really see tangible improvements, and until living conditions gradually converge. Helping reduce the pressure on individuals to migrate is a long-term goal of development policy. The eight Millennium Development Goals 1. Eradicate extreme poverty and hunger 2. Achieve universal primary education 3. Promote gender equality and empower women 4. Reduce child mortality 5. Improve maternal health 6. Combat HIV/AIDS, malaria and other diseases 7. Ensure environmental sustainability 8. Develop a global partnership for development 11

10 Vietnamese vocational school teachers are presented with their certificates at the end of a BMZ-financed further training course in Magdeburg Migration is a form of self-help, which often involves entire families clubbing together so that individual family members can emigrate. They in turn send money home to help the rest of the family survive. This is why development policy also sees migration as an opportunity for development. In this era of globalisation and divergent demographic developments in different parts of the world, migration is increasingly a fact of life. It can become a strategic weapon in the onslaught on poverty and can help us achieve the Millennium Development Goals. It is our goal to harness these opportunities and put them to work for development, while minimising the risks inherent in migration. We aim to achieve a triple-win situation with sustainable and positive results for the wide spectrum of interest groups involved. This is an expression of our values- and interests-driven policies. Since migration is a complex international phenomenon that affects not only development policy but many other different policy fields including foreign policy, domestic policy, labour market and education policy, the approaches taken by development policy must dovetail at different levels. These include: Creating national and international framework conditions for migration, which take into account the needs of developing countries, including general rules and regulations, pro - viding in particular for more legal mobility and specially tailored approaches for individual countries and regions Targeted promotion measures so as to better harness the potentials offered by migration for developing countries; the Federal Ministry for Economic Cooperation and Development (BMZ) has developed a series of instruments to this end (see page 15) Generating greater acceptance of migration and migrants inside Germany; the BMZ intends to help here by providing information about the root causes of migration and the opportunities it opens up. The BMZ sees migrants and their organisations as part of that section of civil society which is active in the field of development both inside Germany and in their countries of origin. This makes them important cooperation partners for the BMZ in efforts to achieve development-policy goals. They can, for instance, provide particularly accurate reports about their home countries. This is why we are happy to involve them in our developmentrelated education work. 12

11 Devising fair rules and regulations A pro-development framework The imperatives of strengthening good govern - ance, ownership and self-help forces in developing countries provide the framework within which our development policy is elaborated. Migration, however, involves divergent interests and objectives that go beyond the confines of development policy, and these are not always reconcilable. If we are to bring together these divergent interests and foster the positive impacts for all parties involved so that a triple-win situation emerges, various policy fields must pull together. This intended collaboration is sometimes also termed coherence. The need for a coherent migration and development policy has now been recognised at EU level and inside Germany. The EU, for instance, documented this in a European Council conclusion on policy coherence dated December The BMZ is involved in the European dialogue on migration policy, which it actively shapes. Along with the other ministries involved in Germany, the BMZ helps translate migration policy into practice. It ensures that the development policy factors are taken into account both at EU level and at national level, thus helping balance the various interests involved and doing its bit to bring about coherent migration and development policies that are mutually complementary. Let s look at some examples. The blue card makes it easier for highly qualified individuals to emigrate to the EU. Many EU states, like Germany, are suffering from increasingly acute shortages of skilled labour as their populations decline and age. EU states should not, however, make good their shortfall at the cost of a massive loss of knowledge in the countries of origin of migrants, a phenomenon known as the brain drain. Ethical principles on the part of EU states attempting to attract specialists from abroad and an intensive dialogue with the countries of origin can help reconcile the interests of the countries of origin and the receiving countries. It is not, however, enough for one country to adhere to principles of this sort, since the highly qualified migrants will simply be snapped up by another country. That is why we are working at EU and international level for the introduction of regulations of this sort Migration and development need an enabling environment if they are to generate a triple-win situation. Germany and Europe are extending the dialogue with countries of origin and are developing practice-oriented approaches. 13

12 governing recruitment (initially in the health sector) that are then to apply in all countries around the globe. Another promising approach to stem the brain drain is circular migration. Provided migrants retain close links to their countries of origin, migration can represent a huge opportunity for these societies and economies. This is all the more true when migrants can alternately spend periods abroad and in their countries of origin. Circular migration allows migrants to break their period of residence in a host country and return to their own country for a period of time. They bring with them the knowledge they have acquired abroad and can split their time between the two economies and cultures. It is important that educational qualifications and occupational skills gained in one country be recognised by other states. If the development potential offered by migrants is to be better tapped, they must also be better integrated into the German and European labour markets. The Coalition Agreement dated 26 October 2009 stipulates that education is the basis for integration in society and for individual success. Migrants can integrate better if they can use the qualifications they have acquired in their own country in Germany. Particularly in view of the shortage of skilled specialists, the knowledge and skills of all migrants are a resource that Germany can ill afford to ignore. The Coalition Agreement provides for the establishment of a legal entitlement to a procedure for recognising educational and occupational qualifications; this would be designed in conjunction with the governments of the federal states in Germany. The procedure would ascertain to what extent vocational qualifications obtained abroad correspond to German qualifications. This is also in the interests of development policy, because it has emerged that migrants are able and willing to do more for their families and their countries of origin the better they are integrated into the labour market in the receiving country. European dialogue with regions of origin Migration policy is not just a topic for the EU. This is why the EU is encouraging dialogue and practical cooperation with a large number of countries of origin and transit countries. It enters into agreements, known as mobility partnerships, with these states. The EU helps non-member countries tackle the root causes of non-voluntary migration. These partnerships also include cooperation in the field of migration policy. They facilitate movement of individuals between the EU and their countries of origin. A mobility partnership is specially tailored to the specific conditions and needs of the countries of origin, the needs of EU states, and the migrants themselves. This involves jointly planning the entire migration process, from access to the European labour market to support for reintegration in the country of origin. The EU entered into its first mobi lity partnerships in mid-2008 with the Republic of Moldova and Cape Verde, while a similar agreement was signed with Georgia in December The EU has also offered Senegal a partnership of this sort. German development cooperation is involved in the mobility partnerships with the Republic of Moldova and Georgia. Germany takes part in the dialogue forums operated by the EU with a large number of countries of origin and offers advisory services as a partner, for instance to help them align their development plans with de facto migration patterns. 14

13 Education is the most important resource in our global economy. A schoolboy is shown here doing his homework in Dharan, Nepal. Specifically supporting the potentials offered by migration The instruments of German development cooperation Most countries, whether countries of origin or countries of destination, have now come to realise that migration must not be allowed to become a one-way street if we are to harness the potentials it offers. The involvement of the diaspora in their countries of origin, remittances sent by migrants, the transfer of knowledge and experience by migrants to their home countries and the development of human capital in both receiving countries and sending countries offer all participants major advantages. German development cooperation has developed a variety of instruments to allow it to maximise this potential and put it to sustainable use: Delivering advisory services to countries of origin in the field of migration policy Supporting the better utilisation of migrants remittances Cooperating in the non-profit activities of the diaspora communities Integrating the private-sector activities of migrants in development cooperation Supporting returning experts and facilitating the reintegration of returnees in the economy of their home countries Involving migrants organisations in developmentrelated education work in Germany and encouraging networking with local-level actors in development policy. 15

14 Sound advice Policy advisory services in the countries of origin Only careful migration management and cooperation on all sides will allow us to ensure that all parties benefit from the movements of members of the workforce. The policies adopted by countries of origin vis-à-vis diaspora communities and returnees plays a vitally important part. Since 2008 Germany has been focusing on this issue too. German development cooperation advises the governments of sending countries on how to establish special government units dedicated to migration issues. These units deal with the reintegration of returnees, help the latter find employment, establish networks that effectively harness the transfer of knowledge, experience and skills of migrants, and put in place an economic framework that enables migrants to use their know-how and cash effectively. An effective and competent consular service in receiving countries can allow the countries of origin to better advise and support their citizens, also on legal and business questions. If they are to develop mobility partnerships, circular migration patterns and forward-looking sustainable strategies, the countries of origin must be familiar with the profile of migrants. Who is leaving the country? What skills do they have? What are their aims? What impact does their migration have on the economy? What networks exist? What options result from this? The BMZ can also assist partner countries in these analyses and in identifying their needs. Both Germany and the countries of origin can benefit from the ideas and innovative force of young people.

15 Secure and cost-effective transfers Making the best possible use of remittances Many migrants live outside their countries of origin because they are able to work in the receiving country and can thus ensure the financial survival of their families at home. On average, migrants send between 20 and 30 per cent of their income back to family and friends in their country of origin. According to a World Bank study, remittances in 2010 totalled 325 billion dollars. The true total is probably several billion dollars higher, since large sums are sent home using informal channels. By contrast, the total ODA in 2009 was 120 billion dollars less than half the amount sent home by migrants. Today many economies depend on these cash flows from abroad. In Tajikistan, for instance, remittances account for almost 30 per cent of GNP. People in the countries of origin use the money sent by family members living abroad to alleviate the worst consequences of poverty. They use the money to pay doctor s bills and for drugs for sick family members, to repair their homes, and send their children to school. If money is left over, they use it as start-up capital for their own small businesses, or buy consumer goods. Remittances are thus a factor that can stimulate the local economy. 325 billion dollars were remitted by migrants around the world in This huge sum is a source of important investment and fosters development. Politicians are called on Syria has long maintained close trading and business links to its neighbours and to Europe. It is not uncommon for Syrian families to send their children abroad to train, study, or work. Migration thus has a long tradition among educated families. After the collapse of the East European market, which used to be very important for Syria, the country aimed to improve its chances on the world market and better use the potential offered by its migrants around the world. With this in mind, Syria founded a Ministry of Expatriates in To optimise the work of the ministry, Syria asked Germany to conduct a study that was to identify areas with potential for improvement. Concrete recommendations for action are currently being discussed. The list of recommendations is long. Now they must be put into practice. The initial advisory services provided by German development cooperation were able to provide the impetus. 17

16 Developing countries often have no nationwide banking system. The poor sections of the population have little trust in banks, and few people of them have their own bank account. For these reasons migrants often use informal channels to transfer money. They entrust it to bus drivers, who charge a fee, or ask compatriots who are returning home to take the cash. Alternatively they take it themselves. They run a high risk of being robbed or of clashing with corrupt customs officers or border guards. Some financial institutions offer a cash transfer, but charge enormously high fees. This type of transfer is safer, but extremely expensive. On behalf of the BMZ, the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH has developed the website in conjunction with the Frankfurt School of Finance & Management. The website provides migrants with the information they need about services offered by banks and other financial institutes and the fees they charge. This makes the money transfer market more transparent, but also heightens competition among the institutions offering services in this area. As a result it is becoming more affordable to transfer money safely. Remittances only foster development in the countries of origin if the recipients put the money to sustainable use. If they are to do so, certain conditions must be in place. One of these is the availability of properly functioning elementary financial services. Once confidence has been established in the financial sector, and migrants have decided to entrust the regulated formal financial sector with their cash, the advantages are many. Cash can be transferred safely. The banks can offer recipients financial products such as savings accounts, insurance policies, foreign, currency accounts, and advisory services on investment and small-scale Growing trust The Serbian diaspora in Germany is large. Many Serbians came to Germany from the then Yugoslavia as guest workers, while others fled during the war in the Balkans. More than 80 per cent of them send money home, mostly to help their families and friends. About one quarter of them, however, use the money to pay for real estate they have bought in Serbia. The confidence of many migrants in the Serbian banking system has been severely shaken, since they lost all they had invested with these banks during the war. Gradually, however, things are changing. Matija T. has invested a small amount in a current account in Serbia. I don t trust the Serbian banks enough yet to transfer more. Unfortunately it is still very expensive to transfer money from Germany to Serbia, and the legal certainty in my home country is still very shaky. Yet, since more and more foreign banks have opened for business in Serbia a positive trend can be seen. The service offered by banks has improved beyond measure, confirms Matija T. A fair number of Serbian migrants would like to return to their homes, because they have great hopes for their country. I believe that Serbia will develop well economically and that things are taking off. The cake is still to be shared out and our country has a huge potential, says Matija T. For migrants the availability of mortgages and loans for purchasing and constructing homes, start-up loans, business loans and pension schemes is important. 18

17 loans. In return they can use the foreign exchange for their own business. To allow them to offer recipients of remittances needs-driven financial services, numerous partner countries of German development cooperation need support. In many of these countries the idea of making money from small savings, microloans and remittances has not yet really become popular currency. It is thus an important task of development cooperation to encourage the establishment of pertinent financial institutions or to strengthen and advise existing partner institutions. Close ties to their home countries Cooperating with migrants organisations Many migrants living in Germany have set up their own diaspora organisations, as they are known. Their involvement benefits their countries of origin in a wide variety of ways. They lay water and sewage pipes in their home municipalities, set up health centres, schools and vocational schools, purchase medical drugs and ensure a reliable power supply in the communities they come from. The overarching goal of the organisations often corresponds to that of development cooperation, i.e. to sustainably improve the living conditions in their countries of origin. This is why German development cooperation promotes non-profit projects jointly with migrants associations in the countries of origin of the migrants. The advantages are plain to see. The migrants living in Germany are familiar with the social and political An enlightening investment Afghan migrants association In Bad Krozingen in Baden-Württemberg in the southwest of Germany, Afghan migrants have founded an as - sociation, the Afghan-Bedmoschk-Solar-Center. Mo - ham mad Sabur Achtari, the chairman, told us what led the group to establish an association. In Afghanistan only eight per cent of households in rural areas are connected up to the national grid. Without electric power, the women, men and children have no real prospects. They are cut off from public life, can scarcely work properly because every piece of machinery needs power, and the children are forced to do their homework by candlelight. The project, Energy Stations for Large Families, that the association is implementing jointly with German development cooperation improved the situation of twelve households overnight in Each family consists of several generations, making these households in ef fect a small village. Solar plants and wind turbines have brought power and light into the lives of these people. Solar lights, electric butter-making appliances and washing machines are making life much easier for family members, especially for the women, and are freeing up a huge amount of time. This in turn allows the families to keep more animals and earn more from the sale of their dairy products. Two young men from the village have been sent to school and have learned how to maintain the energy stations. A training course has taught the family members how to conduct their own small-scale repairs, ensuring the sustainability of the measure. News of the innovation has spread through the district like wildfire. Mohammad Saur Achtari is happy to meet the huge demand for more energy stations. He already has numerous other projects in the pipeline. 19

18 Communication and cooperation emerge when migrants build bridges between cultures. structures in their home countries, and have contacts to local government bodies, decision-makers, institutions and organisations there. They are not hampered by linguistic or cultural barriers and are familiar with the traditions of their people. They know the lay of the land, both in their new home in Germany and in their old homes. By combining the strategic expertise of German development cooperation in terms of project management and technical know-how with the knowledge and experience of the diaspora communities, the impacts of activities can be scaled up. Cooperation structures between development cooperation and the migrants organisations are established and consolidated gradually. This is a good way to harness the potentials offered by migration within the framework of development cooperation. Good business ideas called for Harnessing private-sector potential for development Migrants get involved in social and non-profit projects in their home countries and invest to improve the situation in their countries of origin. A fair number of them, however, also pursue privatesector interests. Migrants know the situation in the receiving country and in the country of origin, and this knowledge enables them to make the most of niche markets and economic opportunities. They found new businesses, invest in existing companies or trade in products between the two countries. They can also act as advisors and mediators to help establish investment and trading links. This makes inward and outward migration the third most important factor in introducing innovative ideas into a country. In the receiving countries, the local diaspora generates demand for products from their homeland. In this way new markets emerge. The population of the receiving country gets to know and like new food and other products from the homelands of migrants. Demand rises and trade in these products increases. German development cooperation also promotes investment, trade and innovations. This is the only way to lend impetus to sustainable economic development that promises jobs and better living conditions. Local institutions are helped to provide interested migrants with information about 20

19 The majority of migrants are young people with above-average training and huge potential. Support for their private-sector initiatives often promises excellent returns. Top left: A soy milk factory in Ethiopia founded by a returnee. Top right: Small enterprises founded by migrants bring diversity to life in Germany Bottom: Training beauticians and hairdressers in Ethiopia markets, quality standards and regulations in their countries of origin and in receiving countries. Other advisory services relating to business startups and business management are specially tailored to the needs of migrants. One particular challenge is often the issue of start-up financing for businesses, where migrants are unable to offer sufficient collateral in their country of origin. German development cooperation helps financial institutions devise suitable financial services, such that they can offer migrants and their families start-up and investment capital. One fundamental concern of development cooperation is to improve the investment and business climate in partner countries. If migrants are not permanently resident in their countries of origin, but are managing businesses from abroad, they need more than the right advisory services. Legal certainty and simple procedures to register new businesses are equally important. Inter-cultural mediators Supporting returning experts Germany is home to a great many people who ori - ginate from developing countries, emerging economies and transition states. They are studying in Germany, undertaking further training or working in highly specialised jobs. Many of them would 21

20 like to return to their countries of origin after a while. With their newly acquired knowledge, their language skills and their international contacts they are extremely valuable for development cooperation and for the private sector. They combine technical expertise with cultural know-how in two worlds. Some good ideas prove remarkably difficult to translate into practice when two radically different cultures clash. As inter-cultural mediators, returnees bring with them their technical skills as well as an ability to cooperate with individuals from different cultural backgrounds. With the Returning Experts Programme, German development cooperation harnesses this potential. When individuals in Germany are interested in returning to their country of origin, the programme offers a wide range of support, including one-to-one advisory services on return and career planning, fact-finding events, support in finding a suitable job, networking with important organisations in the partner country, and in some cases financial support, depending on the development-policy relevance of the work performed by the returnees in their home countries. In many countries, returnees have got together to set up expert organisations. They keep in touch with one another and with German institutes. Some of these organisations have advisors who have themselves returned from Germany, and who help returnees find jobs. They provide support and assistance when returnees have difficulties reintegrating into their own countries. Nostalgia a top export About 15 per cent of all Hondurans seek their fortune abroad. Some 90 per cent of them end up in the USA, where the diaspora is in many ways very close knit. Contacts to friends and family back home are very much alive. Just as they miss the people they have left behind, many migrants long for the products of home. Conversely, Hondurans find American products very attractive. There is thus a lively trade in commodities between the two countries using informal channels. Viajeros, travellers, take the products with them in cases and crates. The problems this entails are obvious: difficulties at customs, the limit on the number of pieces of baggage one can take, and costs incurred for excess baggage. German development cooperation has taken on these challenges, along with the viajeros. We are helping them get together to establish an association, make their transport more professional and comply with customs regulations. The quality and standards of products must be acceptable, if the market is to grow. Marketing strategies help make typical Honduran products better known, so that in future they are bought not only by Hondurans but also by the rest of the American population. 22

21 Well-trained migrants who would like to return home need support so that their skills can be put to the best possible us in their country of origin. This photo shows a careers advisor in the Egyptian city of Mansoura. Students as peace agents? In 2005 Maurice Laba from Cameroon arrived at the University of Paderborn, where he intended to do a Ph.D. in German literature. Alongside his doctorate, however, the issue of conflict prevention attracted his interest. This is a topic that was very close to his heart, since he had grown up with the ethnic conflicts of his country of origin. Parallel to his thesis, he took up a course of vocational training as a peace expert at the Academy for Conflict Transformation in Bonn. Having completed the training programme und run two conflict transformation programmes in Innsbruck, he wanted to return to Cameroon, and put his new skills at the service of his country. He abandoned work on his Ph.D. and applied for a job with the non-governmental organisation Frida House International. Today he works as programme coordinator, and organises seminars and workshops for teachers, journalists and village and religious leaders. He shows his students how conflicts of interest can be resolved using analytical and mediation techniques. Maurice Laba knew that his prospects of earning a good salary locally were anything but rosy, and applied to the Returning Experts Programme for support. I believe that the work I am doing is very import - ant for my home country. I would have earned very little here. That is why, before I returned to Cameroon, I applied for a topping-up payment from the Returning Experts Programme. The additional payments will allow me to establish a livelihood here in a field that I believe to be vitally important, conflict prevention. 23

22 Good integration is a vital prerequisite for living together. Germany and Europe will in future depend on migrants from around the world. Businesses and institutions too can contact the programme if they are looking for specialists. An applicant database and an extensive list of job offers makes it easier to match potential employers and applicants. Explaining development policy to raise acceptance If migration is to benefit all sides, it is very important to integrate migrants well. This applies to migrants who intend to stay in the receiving country and become actively engaged in civil society in this country and from there in their country of origin. It applies equally to those who intend to return to their countries of origin, since they must be given the opportunity to reintegrate. Only individuals who are fully integrated in the culture, customs and political self-understanding of the receiving countries have the opportunity to acquire additional knowledge and to benefit from the values and knowledge of both worlds. This makes it important to improve levels of acceptance of migrants in receiving countries. A lot of education work is still needed in this regard, to explain the causes of migration and the opportunities it represents. Perceptions are changing only very gradually in receiving countries, which are slowly coming to see that they too benefit from migration. Indeed, migration policy tailored to the needs of partner countries is part of our global responsibility. Information and education work on development policy inside Germany aims to raise the level of interest in developing countries and transition states, and in global contexts. It encourages critical reflection and debate and motivates people to become actively involved in ensuring a socially responsible society in our global world. Migrants 24

23 can speak with particular conviction about their own countries. A better understanding of the culture and situation in their countries of origin can also help increase the level of acceptance of migrants in German society. Overcoming prejudices on both sides helps make migration more beneficial to the receiving countries and the migrants themselves. At the same time the efforts to promote a dialogue among equals foster mutual understanding. The in - creased opportunities this offers for each and every individual play a part in resolving global problems. This is why the BMZ is financing sem - inars that encourage exchange of this sort. Development education addresses people where they live and work, establishing a direct contact, at federal state and even more importantly at municipal level. Migrants who can vividly explain and portray their own countries and the problems and opportunities they have experienced in Germany are a vital resource in the development education work of the federal states and municipalities. The resolution passed by the state premiers on development policy in autumn 2008 points in the right direction. Development education, like migration and development, remains one of the most important tasks of the individual federal states. The issues of integration and intercultural competence, however, with which migrants organisations deal, are frequently not networked with the work of German One World activists, work that addresses both Germany and other countries, or with the pertinent twinning arrangements of local authorities. In Germany the BMZ supports the efforts of towns and districts to dismantle cultural barriers and bring together the various separate initiatives that exist. The BMZ is working with the federal states and municipal authorities, seeking to make use of the fact that they are nearer to the people. The aim is to further develop contacts with diaspora groups in Germany, and to involve them in the development cooperation work at state and local levels. Left: Building a community centre in Nepal. Right: Returning experts can become successful entrepreneurs in their own countries. The owner of an expanding textile business in Cameroon is shown here talking to a foreman from India 25

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