ASIA-PACIFIC REGIONAL PREPARATORY MEETING TO THE GLOBAL FORUM ON MIGRATION AND DEVELOPMENT (GFMD) TO 24 SEPTEMBER 2010, BANGKOK

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1 P FOR PARTICIPANTS ONLY SDD/GFMD/RPM/10 17 September 2010 ENGLISH ONLY ASIA-PACIFIC REGIONAL PREPARATORY MEETING TO THE GLOBAL FORUM ON MIGRATION AND DEVELOPMENT (GFMD) TO 24 SEPTEMBER 2010, BANGKOK Key Trends and Challenges on International Migration and Development in Asia and the Pacific * * Disclaimer: This publication has been issued without formal editing. The papers are reproduced in the form in which they were received; only typographical errors and errors of fact or terminology have been corrected. The views expressed in this paper are those of the authors and do not necessarily reflect the views of the United Nations Secretariat. The opinions, figures and estimates set forth in this paper are the responsibility of the author, and should not necessarily be considered as reflecting the views or carrying the endorsement of the United Nations.

2 CONTENTS Page Summary 1 I. Introduction 2 II. Key features of international migration in Asia and the Pacific 2 a. Trends and patterns of international migration 2 b. Labour migration 3 - Countries of origin 3 - Destination of labour migrants 5 c. Migration of women 6 d. Migration for study 7 e. Irregular migration 8 f. Human trafficking 9 III. The development impact of international migration 10 a. Remittances 10 b. Impact of the migration of skilled workers 13 IV. Key social issues of international migration to be addressed 13 a. Gender dimensions of international migration 14 b. Women migrating for marriage 15 c. Families left behind 16 d. Migrant children 16 e. Migration and health 18 f. Migration and social integration 19 V. Protection of the rights of migrants 19 VI. Key areas for action and cooperation 22

3 Page LIST OF TABLES 1. Number and percentage of women in migrant labour outflows, selected 6 countries ( ) LIST OF FIGURES 1. Labour migration outflows from selected countries in Asia, Top ten remittance-receiving developing countries in the ESCAP region, and Remittances as a ratio to GDP (in percent) for main remittance-dependent countries 12 in the ESCAP region, 2003 and 2008 ANNEXES 1. Key demographic and economic indicators related to international migration in i Asia and the Pacific 2. Countries having ratified key international instruments regarding international iv migration

4 Summary International migration has become a structural element of societies and economies in Asia and the Pacific. The most typical feature of migration in the Asia-Pacific region is temporary labour migration, with increasing numbers of employment that were barely affected by the global economic crisis. Remittances sent in 2007 to countries in the Asia- Pacific region exceeded $185 billion, improving the quality of life of millions of poor households and sustaining national economies, financing the balance of payments and increasing foreign exchange receipts. While the benefits of international migration are apparent, its costs remain an area of great concern. The consequences of brain drain, the impact of migration on family members left behind and gender roles remain significant challenges requiring the attention of policymakers. The protection of migrants is particularly challenging and the issue remains on the fringes of migration discussions. Calls for cooperation to manage international migration have increased in recent years. The international community is intensifying its efforts to address international migration issues from development perspectives. The latest endeavour in this respect is the fourth meeting of the Global Forum on Migration and Development, which is scheduled to be held in Puerto Vallarta, Mexico, from 8 to 11 November The central theme will be Partnerships for migration and human development: shared prosperity shared responsibility. The paper outlines key trends on international migration and development and the key social issues that need to be addressed in order to better harness the positive impact of international migration and development and minimize negative impact. The paper also suggests key areas for cooperation. The delegates are requested to intervene by sharing their experiences and report on examples of good practices from their countries to address the issues related to international migration. 1

5 I. Introduction 1. International migration has become an integral and inevitable feature of globalization. In Asia and the Pacific, it has become a structural and permanent element of societies and economies. It is being propelled by various push and pull factors, including persistent intercountry disparities in development, increased integration of the regional economy and divergent demographic dynamics. Labour market transformations, technological progress and economic interlinkages are creating new demands for both skilled and less skilled migrant labour. In addition, international migration is influenced by Government policy, existing migration networks and private agencies which recruit migrant workers. 2. Increasingly, international migration is appearing at the forefront of the policy discourse on managing globalization. There is a growing recognition of the linkages between international migration and development. Because its impacts are multidisciplinary and transnational in nature, addressing the challenges of international migration will require a high degree of cooperation and coordination at the national, regional and international levels. The international community, through the United Nations system, has been engaged in finding solutions to the pressures of migration with a view to maximizing its benefits while minimizing its negative consequences. The High-level Dialogue on International Migration and Development, which was held in New York on 14 and 15 September 2006, deliberated on international migration within the broader context of the achievement of internationally agreed economic and social development goals and respect for all human rights. The historic meeting broadly agreed that international migration, if supported by the right set of policies, could be a positive force for development in both countries of origin and destination (see A/61/515, para. 7). 3. The latest endeavour by the international community on the issue of international migration is the Global Forum on Migration and Development. Strongly supported by Governments participating in the High-level Dialogue, the forum was established as a standing informal consultative body that is open to all States Members of the United Nations. II. Key features of international migration in Asia and the Pacific a. Trends and patterns of international migration 4. The Asian and Pacific region currently hosts about 25 per cent of the world s estimated 214 million international migrants this percentage has decreased from 30 percent of the world s migrants in Yet, these numbers do not reflect the complexity of international migration in the region with a growing number of countries in the region participating in the migration process as either sending, transit or receiving countries. 5. The Asian and Pacific region is a major source of permanent migration to Australia, Canada, Europe, New Zealand and the United States. China, India and the Philippines rank among the top ten sources of immigrants to these settlement countries. Family reunification, labour market needs and humanitarian considerations have allowed large numbers of Asians and Pacific islanders to qualify for admission. In recent years, there has been a turn towards applying more skills-based criteria in the admission of migrants. 2

6 6. While a large number of migrants from Asia and the Pacific continue to seek longterm or permanent settlement in traditional countries of immigration, the cross-border mobility of people within the region has risen rapidly. Today, a major proportion of Asia- Pacific migration is intraregional and a substantial part of it involves the movement of workers. With few significant exceptions, authorized migration within Asia and the Pacific is primarily intended to fill labour gaps. Migrants are allowed into destination countries to render their labour in specific sectors and are expected to return to their countries of origin upon expiration of their contracts. 7. The Asia-Pacific region hosts five large migration hubs. The bulk of labour migrants from Asia-Pacific, especially migrants from South Asia, migrates to the oil-rich countries of the Gulf Cooperation Council (GCC). The other two important hubs for labour migrants are the more affluent economies of East Asia, namely Japan; Hong Kong, China; Republic of Korea and Taiwan Province of China as well as South-East Asia, especially Brunei Darussalam, Malaysia and Singapore. In recent years, an estimated 65 to 70 percent of Asia s labour migrants migrated to work in West Asia, while around percent migrated to South-East Asia and another percent to North-East Asia 1. The fourth migration hub is migration from Central Asian countries to the Russian Federation and Kazakhstan. The migration hub is the Pacific with Australia and New Zealand as main destinations. 8. Many countries are in need for in-migration for demographic and economic reasons. Overall, migration tends to flow from low or lower-middle income countries, typically with medium to high fertility to countries with high income and low fertility. Table 1 (Annex) shows that most countries with net in-migration are countries with middle or high income, and a fertility rate below the replacement level of 2.1. Demographic trends show that demand for migrant workers will even increase in long-term for countries with low fertility and high economic growth In the Pacific, migration flows are largely geared towards Australia, New Zealand and the United States of America, especially from Polynesia and Melanesia. However in Micronesia, migration flows primarily occur between Micronesian countries within the Pacific and the United States of America. A significant new trend is movement from China to the Pacific 3. b. Labour migration Countries of origin 10. A salient feature of international migration in the Asian and Pacific region is the large volume of temporary labour migration. Labour migration in Asia involves mostly less skilled workers, with most migrant workers engaged in jobs that are concentrated at the bottom of the employment ladder. A large number of migrant workers are found in 1 ESCAP Labor Migration Database. 2 Regional Thematic Working Group on International Migration including Human Trafficking (RTWG) (2008). Situation Report on International Migration in East and South-East Asia (International Organization for Migration, Bangkok). 3 Hayes, Geoffrey (2010): Strengthening National Capacities to deal with International Migration: Maximizing Development Benefit and Minimizing Negative Impact in the Pacific Sub-Region, paper presented at a Workshop on Strengthening National Capacities to Deal with International Migration, April 2010, Bangkok. Available at: 3

7 agriculture, construction, labour-intensive manufacturing and cleaning services. For many women, domestic work is one of the primary employment opportunities available in the global labour market. 11. Several labour-surplus countries in Asia are actively involved in promoting labour migration. However, the limited role of Governments in the process of recruitment has led to the widespread commercialization of migrant labour flows. Currently, over 90 per cent of the labour recruitment in Bangladesh, India, Pakistan and Sri Lanka is carried out by private recruitment agencies. 4 This arrangement has given rise to irregularities and abuses at all stages of the migration process, imposing costs on migrants and their families. 12. In 2008, most labour-deploying countries still reported large-scale outflows with limited or even non-existent impact of the global economic crisis. Over the past few decades, the Philippines has continued to top the list of key source countries of migrant workers. In 2009 alone, the country deployed over 1 million land-based migrant workers, including new hires and re-hires (see figure 1). Annual labour deployment from Bangladesh had increased sharply in the past decade, exceeding even the Philippines in 2007 but experienced a sharp drop in 2009, mainly due to a sharp decrease in labour deployments to Saudi Arabia. In 2008, Bangladesh reported the deployment of 848,601 migrant workers. It should be noted that the actual number of migrant workers from the region is likely to be greater than official records reveal because of unknown flows of workers who move without registering or without having to register with national authorities. For example in the case of India, only lowskilled migrant workers require clearance from the Ministry of Overseas Indian Affairs. Figure 1. Labour migration outflows from selected countries in Asia, Thousands Bangladesh China India Indonesia Pakistan Philippines Sri Lanka Thailand Source: ESCAP Database on Asian Labour Migration 13. In the main destination countries of Asian migrants, international migration relieves labour shortages, often in sectors that are less in demand by the local workforce. Migrant domestic workers benefit the host economy by freeing female household members to 4 Shahidul Haque, Migration Trends and Patterns in South Asia and Management Approaches and Initiatives, Asia-Pacific Population Journal, Vol. 20, No. 3, December 2005 (United Nations publication, Sales No. 05.II.F.97). 4

8 participate in the labour market. Some findings show that in segmented labour markets, where migrant labour is largely confined to labour-intensive sectors such as construction and manufacturing, the impact on the wages and employment of the local labour force is minimal. However, the availability of migrant workers at low wages has the unintended consequence of retarding the adoption of new technologies and creating incentives for labour-intensive industries to expand the admission of foreign workers. Further researchbased information is needed to clarify the various impacts of migration on host countries. It could then be used to serve as the basis for more realistic policies. 14. While international labour migration in Asia and the Pacific concerns mostly less skilled workers, migration of highly skilled and professional workers has been significant since the 1990s. The number of business professionals, managerial workers, medical and health professionals and information and communications technology (ICT) personnel working outside of their countries of origin is growing within and outside of the region. The two types of skilled workers most in demand are ICT and health professionals. The demand for the former is part of the growing importance of the ICT sector in the global economy, while the demand for the latter is linked to the rising health care needs that often result from population ageing. Destination of labour migrants 15. Although the main region of destination for Asian labour migrants is still the Middle East, intr-regional migration is gaining importance. Some countries, although still labour deploying, have become countries for labour migrants themselves. 16. Saudi-Arabia is still the main country of destination the key labour-deploying countries (India, Pakistan, Philippines, Sri Lanka). Other countries of the Gulf Cooperation Council (GCC), mainly the United Arab Emirates, are other key destination countries. In 2009, 50 percent of the labour migrants from Pakistan migrated to work in Saudi Arabia and 35 percent to the United Arab Emirates. For migrants from the Philippines, Hong Kong China has been the third most important country of destination in recent years after Saudi Arabia and the United Arab Emirates. However, migrant outflows from the Philippines to Hong Kong, China have been falling while outflows to the GCC are still on the rise. Thailand s migration patterns vary significantly from other labour-deploying countries: In 2009, the main country of destination (for 33 percent of the worker outflows) was Taiwan Province of China, followed by Qatar and Sweden Australia and New Zealand, traditionally destination countries for permanent settlement of skilled migrants, have recently designed temporary seasonal labour migration schemes, mainly in agriculture. Launched in 2006, New Zealand s Recognised Seasonal Employer Work Policy (RSE), allows up to 5,000 unskilled workers per year from selected Pacific Island countries to enter New Zealand on temporary work permits for employment in the horticulture and viticulture industry for up to 7 months at a time. Australia announced its Pacific Seasonal Worker Pilot Scheme (PSWPS) in The PSWPS allows for 2500 unskilled workers from Papua New Guinea, Tonga, Kiribati and Vanuatu to enter Australia over a three-year period to work in orchards and vineyards for up to six months 5 ESCAP Labour Migration Database

9 per year. However, the number of Pacific islanders who have benefited form these temporary labour migration schemes has been limited to date Some Asian-Pacific countries have become countries of destination for migrants in spite of high unemployment in these countries. This could be attributed to a skill mismatch of the jobs in the country. For example the Maldives in 2009 hosted 80,839 labor migrants, mainly from Bangladesh, India and Sri Lanka 7. Similarly, India and Philippines reported migrant labour outflows to Afghanistan. 19. Some Pacific island countries, especially in Micronesia, have become destinations for temporary workers from China and the Philippines. Temporary workers have for example moved to work in garment factories in the Northern Mariana Islands a flow that has started to reverse due to changes in tariff rules for entry of clothing to the United States of America. Guam is a net recipient of migrants from Asia, the Pacific and the United States of America, largely supported by the expansion of U.S. military facilities on the island. c. Migration of women 20. A large number of migrating women has often been highlighted as one of the key features of labour migration from Asia. But overall, there are still more migrating men than women. In the past decade, three countries reported in the past more female than male outflows: Indonesia, Philippines and Sri Lanka. Although still at a low level, it is also reported that migration of women from Bangladesh and Nepal is increasing often through irregular channels. Almost 50 percent of the migrants from Central Asia to the Russian Federation are women. In the Russian Federation, migrants from Central Asia, demand for labour which is typically filled by women, has been increasing. Often, women with a high skill level migrate to work in lower skilled jobs in the services sector in the Russian Federation due to the wage difference between Central Asian countries and the Russian Federation But the trend of increasing feminization has slowed down at least for some countries (see Table 1). In the case of Sri Lanka, this is due to faster growth of male migrant outflows than female outflows. Decreasing migration of women from the Philippines can be attributed to policies from the Philippines reducing the number of women migrating as domestic helpers and as entertainers. Table 1: Number and percentage of women in migrant labour outflows, selected countries ( ) Indonesia Number 297, , , , ,615 Percentage Philippines a Number 178, , , , ,458 Percentage Sri Lanka Number 122, , , , ,010 Percentage a The figures for the Philippines refer to newly hired workers only 6 Hayes, Geoffrey (2010), ibid. 7 Maldives, Ministry of Human Resources, Youth and Sports. 8 Denisenko, Mikhail (2010): Migration and Remittances in Central Asia and South Caucasia, forthcoming. 6

10 Indonesia Number 325, , ,859.. Percentage Philippines Number 205, , , ,336 Percentage Sri Lanka Number 137, , , ,200 Percentage Source: ESCAP Labor migration database 22. But the overhang of female migrant workers is not true for all countries and some countries even have policies in place that restrict the migration of women. Low-skilled migrant workers deployed by India and Pakistan are virtually all males. For example in Pakistan, unmarried women below 30 would not receive clearance from the Ministry of Labour. Prior to 2003, Bangladesh restricted the migration of low- and semi-skilled women, and females equaled less than one per cent of deployed workers. After the removal of the restrictions, the number of females deployed has increased rapidly, reaching 18,000 in 2006, or about 5 per cent of the total. When the ban on the migration of low- and semi-skilled women was lifted, a minimum age of 35 years was imposed. The minimum age was reduced to 25 years in 2006, with no age limit for women migrating as cleaners The reasons why an increasing number of women felt the need to migrate can be found both on demand and supply sides. On the one hand, there was increasing demand for female-dominated jobs such as domestic work, caregivers and healthcare work from the GCC countries, and in East and South-East Asia. On the other hand, increased unemployment of men in many countries of origin combined with job opportunities for women abroad motivated many women to migrate. Research has also shown that women more than men often opt for migration to escape from unwanted marriages, abusive relationships or husbands or rigid social systems. Breakup of families is in sometimes not the consequence but rather the cause for migration 10. d. Migration for study 24. One result of the increasing interconnectedness of the global economy, sciences, arts and culture is the rising number of students who study outside of their country. Education has also become increasingly globalized, especially at tertiary level. In 2005, 66 percent of Asian students studied either in Europe or North America 11. In 2008, the largest numbers of Asian students studying abroad came from China ( ), India ( ), and the Republic of Korea ( ). The outbound mobility ratio (students studying abroad out of all the students from a particular country) is especially high in very small countries or landlocked developing countries. In 2006, the countries with the highest student outbound 9 Sikder, Mohammad Jalal Uddin (2008). Bangladesh, Asian and Pacific Migration Journal, vol. 17, Nos. 3-4, pp Regional Thematic Working Group on International Migration including Human Trafficking (RTWG) (2008). Situation Report on International Migration in East and South-East Asia (International Organization for Migration, Bangkok). 11 UNESCO Institute for Statistics, Fact Sheet No. 02, February 2005, UIS/FS/05/02. 7

11 mobility ratio were Brunei Darussalam (39.8 percent), Turkmenistan (25 percent), Bhutan (21.7 percent), Hong Kong, China (20.3 percent) and Uzbekistan (10.3 percent) A large number of Asian students also study in other Asian countries and some Asian countries also attract students from other regions. From countries where data has been available, Australia, Japan, and the Russian Federation attract large numbers of foreign students. In 2008, students from Asia studied in Australia, among them 31 percent from China, 14 percent from India and 10 percent in Malaysia. Japan hosted Asian students in 2007, 66 percent of them being from China and 19 percent from the Republic of Korea. In 2007, there were 34,522 students from other Asian countries in the Russian Federation, 57 percent of them being from Kazakhstan. 26. Fees that families pay for overseas education are sometimes viewed as a form of reverse remittances when they flow from developing to developed countries, although they could also be seen as investments that in the long term will provide a net benefit to the developing country. However, student migration could also lead to a brain drain. For example Australia facilitates a permanent visa to those who had studied in Australia. e. Irregular migration 27. Authorized labour migration, irregular migration, and smuggling or trafficking in persons are often closely related. When a demand for migrant workers exists and there are large numbers of workers willing to accept that employment, channels develop to assist workers to migrate to do so. If official channels are available, inexpensive and efficient, most workers are likely to choose to migrate through them. If the volume of supply and demand exceed the ability or limits of the official channels, however, irregular migration is likely to develop. Depending on the mechanisms of irregular migration, and the degree of exploitation of the migrants that is involved in their movement or employment, some irregular migration could also be considered smuggling or trafficking in persons. 28. Migrants may be in an irregular status owing to unauthorized entry, unauthorized employment, or a change in employment status (such as working for a different employer than the one specified by the work permit). Thus, the irregular status of many migrant workers is determined by their employment rather than their migration. 29. Because of their very nature, it is virtually impossible to accurately estimate the magnitude of irregular migration flows. The number is often only revealed in a regularization campaign offering amnesty to irregular migrants who register. Some speculate that there are 290,000 persons from Myanmar in Bangladesh, 70,000 in India and 25,000 in Malaysia. Another speculative report suggests there are 10,000 Cambodians working in Malaysia, with perhaps three quarters of them in an irregular status 13. Pakistan attracts irregular migrants from Afghanistan, Bangladesh and Myanmar 14. According to a 12 UNESCO Institute for Statistics, Data Centre, =0, 1 September Regional Thematic Working Group on International Migration including Human Trafficking (RTWG) (2008). Situation Report on International Migration in East and South-East Asia (International Organization for Migration, Bangkok). 14 International Organization for Migration (IOM) (2008). World Migration 2008: Managing Labour Mobility in the Evolving Global Economy (IOM, Geneva). 8

12 conservative estimate there are about 1.3 million irregular migrants in Thailand, with perhaps 80 per cent of them from Myanmar and the remainder from Cambodia and the Lao People s Democratic Republic Large-scale irregular migration is present in North and Central Asia. According to estimates, almost half of the migrants residing in the Russian Federation are irregular migrants. Estimates range between 2.5 million and 4.5 million in The largest numbers of irregular migrants to the Russian Federation come from countries of the Commonwealth of Independent States, who can enter the Russian Federation temporarily without a visa 16. Moreover, it is estimated that between 500,000 and 1 million migrants, mostly from Kyrgyzstan, Tajikistan and Uzbekistan, are present in Kazakhstan in an irregular situation. 31. While irregular migration is primarily an issue to be resolved by the country of destination, there are many steps that countries of origin can take to minimize the likelihood that their nationals will become irregular migrants. An effective approach would combine greater enforcement of recruitment regulations with the development of more efficient channels for authorized migration. Effective management of migration involves the limitation of the number of private recruitment agencies and careful regulation of their activities. More transparent and efficient migration channels can often be developed in consultation with destination countries and with bilateral memoranda of understanding, as the Republic of Korea requires for all countries of origin. It must be recognized, however, that the large volume of irregular migration in Malaysia and Thailand has occurred in spite of government programmes to accept registered migrant workers and the negotiation of bilateral MOUs with countries of origin. Official channels remain comparatively costly, complicated and time-consuming so many migrants risk moving and finding employment through irregular channels. 32. Recruitment, certification of qualifications, placement of workers and agreement on contracts can be made more efficient by lowering the cost of necessary documents, faster processing, setting up one-stop service centres, and providing ample public information about the process. Deployment agencies may also increase the attractiveness of regular migration by offering insurance coverage and pre-departure loans. f. Human trafficking 33. Persons who are deceived or coerced to migrate for employment that is exploitative are defined to be victims of trafficking. Much trafficking occurs in the context of irregular migration flows. While significant trafficking routes have been discovered in Asia, the number of persons officially identified to be victims of trafficking is very small 17. The considerable disconnect between estimates of the magnitude of trafficking and the actual number of cases officially identified occurs largely because authorities attempting to control trafficking tend to focus on specific categories of migrants rather than on the full range of migrant workers and their workplaces. 15 Sciortino, Rosalia and Sureeporn Punpuing (2009). International Migration in Thailand 2009 (International Organization for Migration, Bangkok). 16 Denisenko, Mikhail (2010): Migration and Remittances in Central Asia and South Caucasia, forthcoming. 17 Huguet, Jerrold W. and Varamon Ramangkura (2007). The Long Road Home: Analysis of Regional and National Processes for the Return and Reintegration of Victims of Trafficking in the Greater Mekong Sub-region (IOM, Bangkok). 9

13 34. Human trafficking has been a rapidly growing category of transnational crime and an issue of concern for many Governments in the region. Trafficking is a disruptive and harmful form of irregular migration that involves multiple forms of exploitation, often comprising of elements of deception, coercion, abuse and violence. Human trafficking targets vulnerable people: women and men, adults and children. 35. Women, who make up the majority of trafficking victims, are often targeted for the purposes of commercial sexual exploitation, forced marriage and domestic servitude. However, recent findings suggest that trafficking of men and boys in the region is increasing for purposes including forced labour, exploitation in armed conflict and settlement of disputes 18. The economic vulnerability of trafficking victims can be compounded by physical and psychological abuse, exposure to life threatening or unsanitary conditions, including STDs and HIV/AIDS, and abuse at the hands of authorities. 36. Many countries in South and South-East Asia are subject to activity at all stages of the human trafficking cycle. While most are either origin or destination countries, they are often also considered to be transit countries, where trafficked people await transfer to their final destination 19. Increasingly, trafficking is of concern not only to countries in South and South-East Asia, but also to destination countries outside the region. 37. An impediment to examining the full scope of trafficking in the region lies in poor systematic data collection, and an overall lack of reliable data disaggregated by age, gender and national origin 20. However, it has been conservatively estimated that within South East Asia, at least 200, ,000 women and children are trafficked every year. This forms almost one third of estimated annual global trafficking 21. Also recognized as a barrier to successful policy formation is a lack of uniformity in the definitions, laws and penalties relating to Human Trafficking in the region. III. The development impact of international migration a. Remittances 38. Remittances made by migrants are one of the most visible outcomes of international migration. At the household level, remittances enhance well-being and economic security by providing critical resources for spending on immediate subsistence needs such as food and housing as well as on improved health care and education. Remittances also provide potential income for investment, savings and entrepreneurial activities which, in turn, can have stimulating effects on the local and national economies. In this respect, the contribution of international migration to poverty alleviation and overall socio-economic development has been duly recognized. The volume of remittances to several countries of origin is now so high in absolute terms as well as in relation to other sources of finance that 18 International Organization for Migration (IOM), Review of the SAARC Convention on Preventing and Combating Trafficking of Women and Children for Prostitution and the Current Status of Implementation, Dhaka, International Organization for Migration (IOM), Paths of Exploitation: Studies on the Trafficking of Women and Children between Cambodia, Thailand and Viet Nam, Geneva, UNICEF Innocenti Research Centre (IRC), South Asia in Action: Preventing and responding to child trafficking, 2009, available at 21 International Organization for Migration (IOM), Combating Trafficking in South-East Asia: A Review of Policy and Programme Responses, Geneva,

14 it has become essential to harness its potential to bring about longer-term and broader economic and social development. 39. The Asia-Pacific region remains the largest remittance-receiving region in absolute terms receiving 42 percent of the world s remittances. South Asia was with 4.9 percent the largest remittance-receiving region in relation to GDP compared to other world regions. In 2008, the Asia-Pacific region received about $185 billion of remittances, up from $ 146 billion in The fast growth of remittances over time is remarkable with a four-fold increase compared to However, this can also be due to improved recording of remittances, while a large number of remittances still remain unrecorded. 40. In 2008, India and China remained the largest remittance-receiving countries in the Asia-Pacific region, followed by the Philippines, Bangladesh, Pakistan, Viet Nam and Indonesia (see Figure 2). Preliminary data also confirms that the impact of the global economic crisis on remittances was rather limited. In some countries, remittances even increased. Figure 2: Top ten remittance-receiving developing countries in the ESCAP region, 2007 and 2008 Millions India China Philippines Bangladesh Vietnam Pakistan Indonesia Sri Lanka Nepal Tajikistan Source: World Bank, World Development Indicators Database 2010 Note: Remittances refer to workers remittances and compensation of employees 41. Remittances are especially significant for small economies. Among the ten countries in the Asia-Pacific region with the largest remittance to GDP ratios in 2008 were seven countries that are among the group of least developed countries, landlocked developing countries and small island developing states. In Tajikistan, the ratio of remittances to GDP reached almost 50 percent, in Tonga 36 percent and in Samoa 26 percent (Figure 3). The remittance to GDP ratio has increased significantly for some Central Asian countries such as Tajikistan and Kyrgyzstan. In Tajikistan, it increased from 9.4 percent in 2003 to 49.6 percent in 2008, in Kyrgyzstan from 4.1 percent to 24.4 percent. In the Philippines and Sri Lanka, two traditional labour-exporting countries, the ratio of remittances to GDP has varied little over time in the past decade. 11

15 Figure 3: Remittances as a ratio to GDP (in percent) for main remittance-dependent countries in the ESCAP region, 2003 and Tajikistan Tonga Samoa Kyrgyz Republic Nepal Bangladesh Philippines Armenia Vietnam Sri Lanka Kiribati Source: World Bank, World Development Indicators Database 2010 Note: Remittances refer to workers remittances and compensation of employees 42. In the Pacific, a traditionally remittance-dependant region, remittances have not shown the fast growth as remittances in Asia. The main challenge for the Pacific will be to sustain the level of remittances, since opportunities to diversify their economies are already limited in the Pacific. In Fiji, remittances have been decreasing since In Tonga, growth in remittance income was relatively limited. In Vanuatu, remittances received have even decreased with only $ 7 million in 2008, compared to nearly $ 53 million in Improving the financial infrastructure underlying remittances is essential to harnessing the development impacts of migration. Among the critical issues are enhancing remittances by regularizing informal remittance channels, improving regulatory and institutional frameworks and reducing the money transfer transaction costs. With the advent of cell phone and Internet-based remittance instruments, the remittance industry is experiencing some positive structural changes. Remittance costs have fallen, although not enough. However, the diffusion of these structural changes is slowed down by a lack of clarity on key regulations, including those relating to money laundering and other financial crimes. Migrants face several challenges in accessing formal financial institutions. Stringent identification and documentation requirements to open bank accounts compel migrants to divert a larger share of remittance transfers into informal channels. 44. Some countries in the region are at the same time economies with large remittance in- and outflows: the countries with the largest remittance outflows in 2008 were the Russian Federation, Malaysia, China, Japan and India. This may to a large extent attributed to worker s compensations paid by companies from these countries, but underlines that remittances also flow both ways. Remittance outflows from the Russian Federation have increased dramatically in the past years from $ 1 billion in 2000 to $ 26 billion in 2008 and are by far exceeding remittance inflows. Similarly, Kazakhstan emerged as one of the countries with the largest remittance-outflows in the region. 45. While the positive effect of remittances on household level and its stabilizing effects on the balance of payments, it still has not been proven whether remittances have a positive impact on economic growth. It is even argued that remittances may delay growth-enhancing 12

16 policies, may reduce the labour force participation and lead to riskier investments. At the same time the stabilizing effect of remittances may reduce the governments incentive to maintain fiscal discipline. Empirical evidence suggests that governments take advantage of the fiscal space afforded by remittances by consuming and borrowing more 22. Stabilizing effects of remittances on the balance of payments can be observed in some economies in Asia: in Bangladesh, Nepal and the Philippines, the current account balance has turned positive with the rise of remittances, in spite of a chronic trade deficit. 23 b. Impact of the migration of skilled workers 46. Brain drain the loss of human capital through emigration is often cited as one of the negative consequences of international migration. This is a major policy concern because a shortage of human capital in key sectors such as education, health and technology could restrict productivity and economic growth and retard the provision of social services. Whether and to what extent the negative effects of the migration of skilled workers outweigh the beneficial effects is still a subject of debate. Some studies indicate that the migration of highly skilled persons may have redemptive impacts through return migration. Return migrants enhance the transfer of technology, skills, knowledge and capital to their countries of origin. They are often leaders who spread ideas ranging from the family norm to entrepreneurship. Similarly, diaspora communities could be instrumental in creating business networks and increasing trade, investment and access to markets in receiving countries and in playing a critical role by bringing new ideas and ways of doing business to their countries of origin. 47. Balancing the costs and benefits of the migration of skilled workers poses a difficult challenge to policy formulation. Many Government interventions aimed at reversing the consequences of brain drain have pursued a two-pronged approach: retention and return. Retention and return interventions are difficult to implement successfully because both require addressing the underlying causes of human capital flight and creating attractive opportunities at home, which may be costly and impractical. Other Governments are seeking to enhance diaspora-related contributions to their domestic economy. Principally, they have sought to cultivate ties with their migrant diaspora by liberalizing dual citizenship and by facilitating diaspora investments and financial linkages with the home country. IV. Key social issues of international migration to be addressed 48. While the economic dimensions have often been the focus of public discussions on international migration, its social dimensions have received only marginal attention. International migration is, however, more than just flow of labour and remittances. It has social dimensions which can have profound implications for origin, destination and transit countries. Migration impacts the lives of those involved as well as their families and communities. 22 Chami, Ralf, Adolfo Barajas, Thomas Cosimano, Connel Fullenkamp, Michael Gapan, and Peter Montiel (2008): Macroeconomic Consequences of Remittances, IMF Occasional Paper No. 259, Washington: International Monetary Fund. 23 World Bank, World Development Indicators

17 49. Temporary labour migration, which is the predominant form of migration within Asia and the Pacific, does not allow migrants to bring their family members to the country of employment. Thus, the separation of families due to migration is a source of great concern, as it could be detrimental to family cohesion, marital stability and the welfare of dependents left behind, particularly children. Family separation as a result of international migration may place those left behind in a vulnerable situation as dependents confront social and emotional consequences. An extended period of separation may result in marital instability, emotional and psychological stress, juvenile delinquency and abandonment of the elderly. 50. A key determinant of the well-being of international migrants is their access to social and health services in the host countries. Migrants often have difficulties accessing social and health services due to language, culture, financial and procedural barriers. This is further compounded by limited coverage of the social protection systems in most developing countries. As a result, many migrants do not have access to health care services or underutilize the services, and the migrant children may be deprived of the opportunities for education. a. Gender dimensions of international migration 51. Gender concern is an important aspect of the social dimensions of international migration. Most of the employment opportunities available to low-skilled women in the global labour market are in the domestic services and manufacturing sectors. The conditions associated with such work have rendered women vulnerable. They are more exposed to forced labour and exploitation than men and they are more likely to accept precarious working conditions and poorly paid work in gender segregated and unregulated sectors of the economy. 52. For example, statistics compiled by the Sri Lanka Bureau of Foreign Employment for the year 2008 indicate that 80 percent of complaints received by Sri Lanka authorities from their workers overseas were filed by women, although women made up only half of the workers deployed that year. Specifically, 80 per cent of complaints about non-payment of wages and 96 per cent of the complaints concerning physical or sexual harassment were filed by women Several countries in the Middle East have recently adopted measures to address some of the systemic causes of abuse of migrant workers, particularly domestic workers. In July 2008, Jordan included domestic workers under the protection of its labour law. In 2009, Lebanon introduced a standard employment contract that clarifies the terms and conditions of employment for domestic workers. In 2009, Bahrain became the first Gulf Arab country to abolish the kafala system under which the migrant workers are tied to an employer and thus cannot change jobs even if abused or not paid. 54. Gender aspects of migration are not given the attention they deserve. Addressing the special concerns of migrant women calls for policies that aim to reduce and eliminate gender-based discrimination, violence and trafficking and to provide assistance to meet the 24 Huguet, Jerrold W. (2010). Linking International Migration and Development in Asia, paper presented at the Workshop on Strengthening National Capacities to Deal with International Migration, April 2010, Bangkok. Available from: 14

18 reproductive health needs of women in vulnerable situations, including emergency and refugee situations. 55. Despite these gender-specific concerns, international migration has the potential to allow women to play increasingly important roles as family providers and agents of development. The opportunity to earn an income and the experience of transcending family boundaries can engender life-changing conditions. When women migrate and become the major income earners for their families, their status can be enhanced; when other family members migrate, the responsibility and decision-making authority of women may increase. Besides economic empowerment, the survival and coping skills developed by women during the migration process is a potential source of change and development. Heightened self-esteem associated with employment, education and knowledge empowers female migrants. Gender equality and empowerment are essential ingredients for achieving many internationally agreed development goals, including the Millennium Development Goals, particularly promoting gender equality and empowering women (Goal 3). Migration can contribute to the empowerment of women and hence promote gender equality. b. Women migrating for marriage 56. The number of transnational marriages is increasing rapidly in Asia and the Pacific. Owing to low fertility rates, son preference and rural-to-urban migration, many males in China, Japan, the Republic of Korea encounter difficulties in finding marriage partners from within their countries. International marriage is seen as a solution by some communities confronting depopulation due to low fertility rates and outmigration. In Japan and the Republic of Korea, local governments in some of the affected communities actively participate in the search for overseas brides. 57. The majority of foreign brides come from China, Indonesia, the Philippines, Thailand and Viet Nam. The entry of for-profit marriage brokers has commoditized the introduction and matching of potential partners, which has often led to abuse, fraudulent marriages and the trafficking of women. Cultural differences and the spouses different expectations of marriage further contribute to the challenges faced by women and men in international marriages. Stereotypes and discrimination against such migrants who are often perceived as marrying for monetary gain further marginalizes their position in society. The situation faced by foreign brides has raised concerns about their safety, their access to support and assistance and their rights, especially when their marriages are troubled or dissolved. 58. For receiving societies, the integration of foreign spouses and their children into host communities is a challenge. Recently, non-governmental organizations have emerged to provide assistance to families formed through international marriages especially to foreign women through language courses, cultural orientation seminars, counselling services and legal assistance. The advocacy work of non-governmental organizations and civil society has contributed to galvanizing support for foreign spouses in distress and to exposing the trafficking elements of international marriages. Policies intended to address the challenges of transnational marriages could include: the regulation of marriage agencies; the establishment of support services, particularly to victims of domestic violence; multilingual services; protection of residency status; access to minimum livelihood protection and employment opportunities; and support for multicultural programmes. 15

19 c. Families left behind 59. The social impact of migration is keenly felt at the family level. The long absence of fathers, mothers or both parents poses a number of challenges for the family members left behind in terms of providing care for dependents, redistributing household chores and decision-making responsibilities, and fulfilling emotional needs. In cases where both parents migrate, children mainly stay with the extended family, who are typically able to provide the care, protection and support which children require. Although access to cheaper and faster communication has significantly bridged the distance between family members, the psychological and social implications on children being left behind requires further attention and study. 60. On average, children of overseas migrant workers do not suffer more social or psychological problems than children of non-migrants, as initial studies from the Philippines have shown. This may be attributable to the abundant evidence in the country that extended families tend to fill in the gap left by missing parents. Studies in Bangladesh, Indonesia, the Philippines, Sri Lanka and Thailand, on the effects of migration on children left behind have shown that the impact of migrating fathers is largely offset by the gains of higher income through remittances. School attendance of children with migrating fathers is often higher than among children from non-migrant families because of the use of remittances for education. 61. Repercussions for children are more severe in cases where the mother migrates, especially with regard to negative impacts on children s education. Recent studies show men often being unable to step into the care-giving role, normally assigned to mothers, and as a result children who do not receive adequate care from other immediate or extended family members may experience neglect or become particularly vulnerable to abuse and exploitation. Support programmes to fathers to help them take over the role of the caretaker could alleviate the situation. d. Migrant children 62. It is often overlooked that children have always been a part of migration, that they are affected by it in different ways, and that their positive as well as negative experiences often differ quite markedly from that of adults. Child migrants are initiators, decision makers and actors in their own right; while at the same time, their vulnerability and need for protection must be taken into account. The lack of distinction between adult and child migrants is thus a considerable challenge which many governments have yet to overcome. Moving to another country poses particular challenges to children, the nature and impact of which often depends on whether they migrate independently or with their families, and the purpose for which they migrate. Migration has the potential to enhance immediate and future choices for children, particularly if it allows them to remain with or be reunited with family, facilitates access to education, or links them to safe employment prospects. However, the possible benefits may be eroded for undocumented children, irregular migrant children, and those who travel on their own or with non-family members, rendering them particularly vulnerable to human rights violations and abuses at all stages of the migration process Jorge Bustamante (2009). Report of the Special Rapporteur on the Human Rights of Migrants to the Human Rights Council of the UN General Assembly. Eleventh session, agenda item 3, 14 May A/HRC/11/7 16

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